Strategic Education (NASDAQ:STRA) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Strategic Education from Buy to Hold, adding to a mixed analyst picture that now leaves the stock with an overall Hold consensus and a target price of $87.
• The company recently missed earnings expectations, reporting $1.42 EPS versus the expected $1.51 and revenue of $305.93 million versus $329.81 million, though revenue still rose 0.8% year over year.
• Shares were up 0.9% to $77.14 on Wednesday, and insider activity was mixed: Director Michael Thawley bought shares in April, while insider Christa Hokenson sold shares in June under a pre-arranged trading plan.

Strategic Education (NASDAQ:STRA - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Wednesday.

A number of other analysts have also issued reports on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Strategic Education in a research note on Tuesday, April 21st. Barrington Research lowered their price target on shares of Strategic Education from $105.00 to $95.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Truist Financial cut their price objective on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating for the company in a research report on Monday, April 27th. BMO Capital Markets decreased their price target on shares of Strategic Education from $95.00 to $86.00 and set an "outperform" rating on the stock in a report on Monday, April 27th. Finally, Zacks Research downgraded Strategic Education from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $87.00.

Strategic Education Trading Up 0.9%

Shares of NASDAQ:STRA opened at $77.14 on Wednesday. The stock has a market cap of $1.74 billion, a PE ratio of 13.63, a price-to-earnings-growth ratio of 0.71 and a beta of 0.51. The stock's fifty day simple moving average is $78.70 and its two-hundred day simple moving average is $80.40. Strategic Education has a 1-year low of $69.70 and a 1-year high of $88.50.

Strategic Education (NASDAQ:STRA - Get Free Report) last posted 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 return on equity of 8.78% and a net margin of 10.21%.The firm had revenue of $305.93 million during the quarter, compared to the consensus estimate of $329.81 million. During the same quarter in the previous year, the company earned $1.30 EPS. The business's revenue was up .8% compared to the same quarter last year. On average, sell-side analysts forecast that Strategic Education will post 7.2 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Strategic Education

Hedge funds and other institutional investors have recently modified their holdings of the stock. Orion Porfolio Solutions LLC lifted its position in Strategic Education by 1.4% during 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 increased its position 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 worth $364,000 after buying an additional 133 shares in the last quarter. Allworth Financial LP raised its stake in shares of Strategic Education by 88.5% in the third quarter. Allworth Financial LP now owns 294 shares of the health services provider's stock worth $25,000 after buying an additional 138 shares during the period. Osaic Holdings Inc. lifted its position in shares of Strategic Education by 85.2% during the 2nd quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider's stock valued at $33,000 after buying an additional 178 shares in the last quarter. Finally, Hantz Financial Services Inc. lifted its position in shares of Strategic Education by 154.2% during the 4th quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider's stock valued at $27,000 after buying an additional 202 shares in the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

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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