Strategic Education Inc. (NASDAQ:STRA) Declares Quarterly Dividend of $0.60

Key Points

• Strategic Education declared a quarterly dividend of $0.60 per share (annualized $2.40), payable June 1 to holders of record May 22, implying a yield of about 3.3% and a payout ratio (~35.9%, expected ~30% next year) that management says is covered by earnings.
• The company missed quarterly expectations—EPS $1.42 vs. $1.75 expected and revenue $305.9M vs. $329.8M—causing the stock to plunge ~13.7% to $72.19 on heavy volume, while insiders (including CEO Raymond McDonnell) have recently sold shares.

Strategic Education Inc. (NASDAQ:STRA - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Stockholders of record on Friday, May 22nd will be paid a dividend of 0.60 per share by the health services provider on Monday, June 1st. This represents a c) dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Friday, May 22nd.

Strategic Education has a payout ratio of 35.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Strategic Education to earn $8.00 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 30.0%.

Strategic Education Trading Down 13.7%

Shares of Strategic Education stock traded down $11.43 on Thursday, reaching $72.19. 905,192 shares of the company were exchanged, compared to its average volume of 278,559. The stock has a fifty day moving average price of $80.72 and a 200-day moving average price of $80.70. The firm has a market capitalization of $1.63 billion, a price-to-earnings ratio of 13.32, a price-to-earnings-growth ratio of 0.80 and a beta of 0.53. Strategic Education has a fifty-two week low of $69.70 and a fifty-two week high of $93.45.

Strategic Education (NASDAQ:STRA - Get Free Report) last announced its earnings results on Thursday, April 23rd. The health services provider reported $1.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.75 by ($0.33). The company had revenue of $305.93 million for the quarter, compared to analyst estimates of $329.81 million. Strategic Education had a return on equity of 8.75% and a net margin of 9.98%.The firm's revenue for the quarter was up .8% on a year-over-year basis. During the same period last year, the firm earned $1.30 earnings per share. On average, equities analysts anticipate that Strategic Education will post 6.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Raymond Karl Mcdonnell sold 38,840 shares of the company's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $75.35, for a total transaction of $2,926,594.00. Following the transaction, the chief executive officer directly owned 106,332 shares of the company's stock, valued at approximately $8,012,116.20. The trade was a 26.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Robert S. Silberman purchased 718 shares of the company's stock in a transaction that occurred on Friday, March 13th. The shares were acquired at an average cost of $80.82 per share, for a total transaction of $58,028.76. Following the completion of the transaction, the chairman directly owned 319,870 shares of the company's stock, valued at $25,851,893.40. This trade represents a 0.22% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 62,420 shares of company stock valued at $4,843,218 over the last ninety days. Corporate insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Orion Porfolio Solutions LLC grew its stake in Strategic Education by 1.4% in the third quarter. Orion Porfolio Solutions LLC now owns 9,367 shares of the health services provider's stock valued at $806,000 after purchasing an additional 129 shares in the last quarter. ProShare Advisors LLC grew its stake in Strategic Education by 3.0% in the fourth quarter. ProShare Advisors LLC now owns 4,538 shares of the health services provider's stock valued at $364,000 after purchasing an additional 133 shares in the last quarter. Allworth Financial LP grew its stake in Strategic Education by 88.5% in the third quarter. Allworth Financial LP now owns 294 shares of the health services provider's stock valued at $25,000 after purchasing an additional 138 shares in the last quarter. Osaic Holdings Inc. grew its stake in Strategic Education by 85.2% in the second quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider's stock valued at $33,000 after purchasing an additional 178 shares in the last quarter. Finally, Hantz Financial Services Inc. grew its stake in Strategic Education by 154.2% in the fourth quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider's stock valued at $27,000 after purchasing an additional 202 shares in the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

About Strategic Education

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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