Grand Canyon Education (NASDAQ:LOPE) Shares Up 15.9% After Better-Than-Expected Earnings

Key Points

• Grand Canyon Education's shares surged 15.9% following an earnings report that exceeded expectations, with earnings per share of $1.53 compared to the consensus estimate of $1.37.
• The company's revenue for the quarter was reported at $247.50 million, surpassing analyst predictions and reflecting an 8.8% increase year-over-year.
• Despite the positive earnings, some analysts have downgraded the stock, with Wall Street Zen changing its rating from "buy" to "hold" and BMO Capital Markets lowering its target price from $222.00 to $210.00.

Grand Canyon Education, Inc. (NASDAQ:LOPE - Get Free Report)'s share price shot up 15.9% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $197.14 and last traded at $199.34. 83,240 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 208,831 shares. The stock had previously closed at $172.05.

The company reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.37 by $0.16. Grand Canyon Education had a net margin of 21.94% and a return on equity of 30.94%. The company had revenue of $247.50 million during the quarter, compared to the consensus estimate of $240.90 million. During the same period in the previous year, the firm earned $1.19 earnings per share. Grand Canyon Education's revenue for the quarter was up 8.8% on a year-over-year basis.

Wall Street Analyst Weigh In

Several research firms have issued reports on LOPE. Wall Street Zen downgraded shares of Grand Canyon Education from a "buy" rating to a "hold" rating in a research note on Thursday, April 24th. BMO Capital Markets reduced their target price on shares of Grand Canyon Education from $222.00 to $210.00 and set an "outperform" rating on the stock in a research report on Monday, July 7th. Finally, Barrington Research reissued an "outperform" rating and set a $215.00 target price on shares of Grand Canyon Education in a research report on Thursday.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. GeoWealth Management LLC acquired a new stake in Grand Canyon Education in the fourth quarter valued at $25,000. SVB Wealth LLC acquired a new stake in Grand Canyon Education in the first quarter valued at $26,000. Aster Capital Management DIFC Ltd acquired a new stake in Grand Canyon Education in the fourth quarter valued at $32,000. Caitong International Asset Management Co. Ltd acquired a new stake in Grand Canyon Education in the first quarter valued at $35,000. Finally, WPG Advisers LLC acquired a new stake in Grand Canyon Education in the first quarter valued at $44,000. 94.17% of the stock is owned by institutional investors and hedge funds.

Grand Canyon Education Price Performance

The stock has a market capitalization of $5.63 billion, a price-to-earnings ratio of 24.88, a PEG ratio of 1.28 and a beta of 0.79. The firm's fifty day moving average is $181.23 and its 200-day moving average is $179.52.

Grand Canyon Education Company Profile

Grand Canyon Education, Inc provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services.

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