Strategic Education (NASDAQ:STRA) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Strategic Education (NASDAQ: STRA) from “strong-buy” to “hold” and set its Q2 2027 EPS estimate at $2.03. The stock’s consensus analyst rating now sits at Hold with an average target price of about $87.
• Strategic Education reported weaker-than-expected quarterly results, posting EPS of $1.42 versus the $1.51 consensus and revenue of $305.93 million versus $329.81 million expected. Revenue still rose 0.8% year over year, and analysts expect full-year EPS of 7.2.
• The stock traded near $79, below its 50-day and 200-day moving averages, while insiders and institutions remained active. A company general counsel sold shares in March, a director bought shares in April, and institutional investors now own 93.27% of the stock.

Strategic Education (NASDAQ:STRA - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Strategic Education's Q2 2027 earnings at $2.03 EPS.

STRA has been the topic of a number of other research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategic Education in a report on Tuesday, April 21st. Truist Financial decreased their target price on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating on the stock in a report on Monday, April 27th. Wall Street Zen raised shares of Strategic Education from a "hold" rating to a "buy" rating in a report on Sunday. Barrington Research decreased 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. Finally, 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. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $87.00.

Strategic Education Trading Down 0.1%

Strategic Education stock opened at $79.05 on Tuesday. The firm's 50 day simple moving average is $80.10 and its 200 day simple moving average is $80.41. The firm has a market capitalization of $1.79 billion, a PE ratio of 13.97, a price-to-earnings-growth ratio of 0.73 and a beta of 0.51. Strategic Education has a 1-year low of $69.70 and a 1-year high of $92.22.

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 for the quarter, missing analysts' consensus estimates of $1.51 by ($0.09). The firm had revenue of $305.93 million for the quarter, compared to the consensus estimate of $329.81 million. Strategic Education had a return on equity of 8.78% and a net margin of 10.21%.The business's revenue was up .8% on a year-over-year basis. During the same period last year, the company posted $1.30 EPS. Research analysts forecast that Strategic Education will post 7.2 earnings per share for the current year.

Insider Transactions at Strategic Education

In other news, General Counsel Lizette Benedi Herraiz sold 7,598 shares of the stock in a transaction on Friday, March 13th. The shares were sold at an average price of $79.97, for a total value of $607,612.06. Following the transaction, the general counsel owned 58,562 shares of the company's stock, valued at $4,683,203.14. This represents a 11.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Michael Thawley purchased 665 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was bought at an average cost of $72.71 per share, for a total transaction of $48,352.15. Following the acquisition, the director directly owned 12,154 shares in the company, valued at approximately $883,717.34. The trade was a 5.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Strategic Education

Institutional investors have recently made changes to their positions in the business. Bastion Asset Management Inc. purchased a new stake in shares of Strategic Education in the 3rd quarter valued at $1,175,000. Teacher Retirement System of Texas boosted its stake in shares of Strategic Education by 302.6% in the 4th quarter. Teacher Retirement System of Texas now owns 63,667 shares of the health services provider's stock valued at $5,106,000 after purchasing an additional 47,853 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of Strategic Education by 438.8% in the 4th quarter. SG Americas Securities LLC now owns 61,531 shares of the health services provider's stock valued at $4,935,000 after purchasing an additional 50,110 shares in the last quarter. Ellsworth Advisors LLC purchased a new stake in shares of Strategic Education in the 4th quarter valued at $6,057,000. Finally, Victory Capital Management Inc. boosted its stake in shares of Strategic Education by 15.0% in the 3rd quarter. Victory Capital Management Inc. now owns 119,538 shares of the health services provider's stock valued at $10,281,000 after purchasing an additional 15,579 shares in the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

Strategic Education Company Profile

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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