Pacer Advisors Inc. Makes New Investment in Strategic Education Inc. $STRA

Key Points

• Pacer Advisors opened a new position in Strategic Education in the fourth quarter, buying 63,078 shares worth about $5.06 million and ending with roughly 0.27% ownership.
• Institutional interest remains high, with several other funds increasing stakes; overall, 93.27% of STRA shares are owned by institutional investors and hedge funds.
• Analysts are mixed on the stock: the consensus rating is Hold with an average price target of $87, while the company recently reported quarterly EPS and revenue that both missed expectations.

Pacer Advisors Inc. acquired a new stake in Strategic Education Inc. (NASDAQ:STRA - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 63,078 shares of the health services provider's stock, valued at approximately $5,059,000. Pacer Advisors Inc. owned approximately 0.27% of Strategic Education at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Allworth Financial LP raised its holdings in shares of Strategic Education by 88.5% during the third quarter. Allworth Financial LP now owns 294 shares of the health services provider's stock valued at $25,000 after acquiring an additional 138 shares during the last quarter. Hantz Financial Services Inc. boosted its stake in shares of Strategic Education by 154.2% in the fourth quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider's stock worth $27,000 after acquiring an additional 202 shares during the last quarter. Osaic Holdings Inc. increased its position in shares of Strategic Education by 85.2% during the second quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider's stock worth $33,000 after purchasing an additional 178 shares in the last quarter. GAMMA Investing LLC raised its stake in Strategic Education by 281.6% in the 4th quarter. GAMMA Investing LLC now owns 725 shares of the health services provider's stock valued at $58,000 after purchasing an additional 535 shares during the last quarter. Finally, Canada Pension Plan Investment Board acquired a new position in Strategic Education in the 2nd quarter valued at $94,000. 93.27% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

STRA has been the topic of several recent research reports. Barrington Research lowered their target price on shares of Strategic Education from $105.00 to $95.00 and set an "outperform" rating on the stock in a research note on Thursday, April 23rd. Weiss Ratings reiterated a "hold (c)" rating on shares of Strategic Education in a research report on Tuesday, April 21st. Truist Financial decreased their price target on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating on the stock in a research note on Monday, April 27th. Zacks Research lowered shares of Strategic Education from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 2nd. Finally, Wall Street Zen raised shares of Strategic Education from a "hold" rating to a "buy" rating in a research note on Tuesday, June 16th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Strategic Education has an average rating of "Hold" and an average target price of $87.00.

Insider Activity

In related news, insider Christa Hokenson sold 2,000 shares of the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $80.00, for a total transaction of $160,000.00. Following the completion of the sale, the insider directly owned 65,195 shares in the company, valued at approximately $5,215,600. This trade represents a 2.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Thawley bought 665 shares of Strategic Education stock in a transaction on Friday, April 24th. The shares were purchased at an average cost of $72.71 per share, for a total transaction of $48,352.15. Following the completion of the purchase, the director directly owned 12,154 shares of the company's stock, valued at $883,717.34. This trade represents a 5.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 3.60% of the stock is currently owned by company insiders.

Strategic Education Stock Performance

NASDAQ STRA opened at $76.45 on Tuesday. The stock's fifty day moving average is $78.79 and its two-hundred day moving average is $80.42. The firm has a market capitalization of $1.73 billion, a P/E ratio of 13.51, a price-to-earnings-growth ratio of 0.70 and a beta of 0.51. Strategic Education Inc. has a fifty-two week low of $69.70 and a fifty-two week high of $88.50.

Strategic Education (NASDAQ:STRA - Get Free Report) last issued its earnings results on Thursday, April 23rd. The health services provider reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.51 by ($0.09). Strategic Education had a net margin of 10.21% and a return on equity of 8.78%. The company had revenue of $305.93 million during the quarter, compared to analysts' expectations of $329.81 million. During the same quarter in the previous year, the company earned $1.30 earnings per share. The firm's quarterly revenue was up .8% compared to the same quarter last year. As a group, sell-side analysts forecast that Strategic Education Inc. will post 7.2 EPS for the current year.

Strategic Education Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 22nd were issued a $0.60 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.1%. Strategic Education's dividend payout ratio is currently 42.40%.

Strategic Education Company Profile

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.

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