Strategic Education (NASDAQ:STRA) Hits New 1-Year Low Following Weak Earnings

Key Points

• Strategic Education shares hit a new 52-week low, trading as low as $68.50 after closing previously at $74.32, a decline of about 5.6%.
• Quarterly EPS was $1.72, missing the $1.95 consensus; revenue of $325.07 million also came in slightly below estimates, though it grew 1.6% year over year.
• Analysts maintain a consensus Hold rating, with an average price target of $96.67.

Strategic Education Inc. (NASDAQ:STRA - Get Free Report)'s share price hit a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $68.50 and last traded at $69.4540, with a volume of 1,837 shares. The stock had previously closed at $74.32.

The health services provider reported $1.72 EPS for the quarter, missing analysts' consensus estimates of $1.95 by ($0.23). The company had revenue of $325.07 million for the quarter, compared to analyst estimates of $326.55 million. Strategic Education had a net margin of 10.46% and a return on equity of 8.98%. The company's revenue was up 1.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.64 EPS.

Analyst Ratings Changes

A number of analysts recently weighed in on STRA shares. Wall Street Zen raised shares of Strategic Education from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. Truist Financial raised their price target on shares of Strategic Education from $80.00 to $90.00 and gave the company a "hold" rating in a research note on Thursday, July 30th. Barrington Research set a $105.00 price objective on Strategic Education in a research note on Wednesday, July 29th. BMO Capital Markets reduced their price target on Strategic Education from $100.00 to $95.00 and set an "outperform" rating for the company in a research report on Monday, October 5th. Finally, Weiss Ratings cut Strategic Education from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, October 28th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $96.67.

Institutional Trading of Strategic Education

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Parallel Advisors LLC increased its holdings in Strategic Education by 2,597.1% during the 3rd quarter. Parallel Advisors LLC now owns 2,778 shares of the health services provider's stock valued at $216,000 after acquiring an additional 2,675 shares in the last quarter. Alps Advisors Inc. lifted its stake in shares of Strategic Education by 12.8% in the third quarter. Alps Advisors Inc. now owns 7,014 shares of the health services provider's stock worth $545,000 after acquiring an additional 798 shares in the last quarter. Heritage Family Offices LLP acquired a new position in Strategic Education during the 3rd quarter worth $25,000. VestGen Advisors LLC bought a new position in Strategic Education during the third quarter worth $242,000. Finally, Signaturefd LLC raised its position in shares of Strategic Education by 120.5% during the 3rd quarter. Signaturefd LLC now owns 1,138 shares of the health services provider's stock worth $88,000 after purchasing an additional 622 shares during the period. 93.27% of the stock is owned by institutional investors and hedge funds.

Strategic Education Stock Down 5.6%

The firm has a market cap of $1.56 billion, a P/E ratio of 11.47, a price-to-earnings-growth ratio of 0.68 and a beta of 0.51. The firm's 50-day moving average price is $80.14 and its 200 day moving average price is $80.32.

Strategic Education Company Profile

Strategic Education, Inc NASDAQ: STRA is an education services company that provides postsecondary programs through Strayer University and Capella University. Its institutions serve working adults and other nontraditional students through online and campus-based learning options.

Strayer University offers undergraduate and graduate degree programs, professional certificates and other career-focused educational programs in areas such as business, information technology, health services and criminal justice.

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