United Services Automobile Association Makes New Investment in Stride, Inc. $LRN

Key Points

• United Services Automobile Association invested approximately $326,000 in Stride, Inc. by acquiring 2,581 shares of the company.
• Stride reported a 22.4% year-over-year revenue increase, reaching $653.65 million, and earnings per share of $2.29, exceeding analysts' expectations.
• Institutional investors own 98.24% of Stride's stock, indicating strong support from hedge funds and management companies.

United Services Automobile Association purchased a new position in shares of Stride, Inc. (NYSE:LRN - Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 2,581 shares of the company's stock, valued at approximately $326,000.

Other hedge funds have also modified their holdings of the company. DAVENPORT & Co LLC acquired a new stake in shares of Stride during the first quarter worth about $461,000. Canandaigua National Bank & Trust Co. acquired a new stake in Stride during the 1st quarter valued at approximately $273,000. FORA Capital LLC purchased a new stake in shares of Stride in the 1st quarter valued at $572,000. GAMMA Investing LLC increased its stake in shares of Stride by 14,892.4% in the first quarter. GAMMA Investing LLC now owns 370,013 shares of the company's stock worth $46,807,000 after acquiring an additional 367,545 shares during the period. Finally, CW Advisors LLC increased its stake in shares of Stride by 89.5% in the first quarter. CW Advisors LLC now owns 161,458 shares of the company's stock worth $20,424,000 after acquiring an additional 76,260 shares during the period. 98.24% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Stride

In other Stride news, CEO James Jeaho Rhyu sold 13,961 shares of the stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $162.66, for a total transaction of $2,270,896.26. Following the transaction, the chief executive officer directly owned 706,353 shares of the company's stock, valued at $114,895,378.98. This trade represents a 1.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 3.00% of the stock is currently owned by insiders.

Stride Price Performance

LRN stock traded down $18.42 during mid-day trading on Monday, reaching $139.94. 3,153,035 shares of the company's stock were exchanged, compared to its average volume of 552,315. The company has a debt-to-equity ratio of 0.31, a current ratio of 5.39 and a quick ratio of 5.27. Stride, Inc. has a 12-month low of $63.25 and a 12-month high of $171.17. The stock's 50 day moving average is $148.09 and its 200 day moving average is $142.66. The company has a market cap of $6.11 billion, a price-to-earnings ratio of 23.25, a price-to-earnings-growth ratio of 0.92 and a beta of 0.22.

Stride (NYSE:LRN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $2.29 earnings per share for the quarter, topping the consensus estimate of $1.83 by $0.46. Stride had a return on equity of 25.51% and a net margin of 11.97%.The business had revenue of $653.65 million during the quarter, compared to the consensus estimate of $626.23 million. During the same period in the prior year, the company posted $1.42 EPS. The business's quarterly revenue was up 22.4% on a year-over-year basis. On average, research analysts expect that Stride, Inc. will post 6.67 EPS for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Morgan Stanley upped their price target on shares of Stride from $148.00 to $159.00 and gave the company an "equal weight" rating in a report on Wednesday, August 6th. Wall Street Zen cut Stride from a "buy" rating to a "hold" rating in a report on Friday, August 22nd. Finally, Barrington Research raised their target price on Stride from $170.00 to $185.00 and gave the stock an "outperform" rating in a report on Friday, August 29th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $146.40.

About Stride

Stride, Inc, a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students.