Strategic Education (NASDAQ:STRA) Trading Down 8.1% - Time to Sell?

Key Points

• Strategic Education shares fell 8.1% on Wednesday, trading as low as $76.50 after closing at $84.08 the prior day, with trading volume running well above average.
• Analysts remain mixed on the stock: the consensus rating is Hold with a target price of $88.67, while recent target changes have been both upward and downward across firms.
• The company recently missed quarterly earnings and revenue estimates, reporting $1.42 EPS versus $1.51 expected and $305.93 million in revenue versus $329.81 million expected, though it also pays a quarterly dividend yielding about 3.1%.

Strategic Education Inc. (NASDAQ:STRA - Get Free Report) traded down 8.1% on Wednesday . The company traded as low as $76.50 and last traded at $77.3050. Approximately 412,111 shares were traded during mid-day trading, an increase of 47% from the average daily volume of 280,593 shares. The stock had previously closed at $84.08.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Barrington Research dropped their price target on Strategic Education from $105.00 to $95.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Truist Financial decreased their price objective on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating on the stock in a research report on Monday, April 27th. BMO Capital Markets raised their target price on shares of Strategic Education from $86.00 to $91.00 and gave the company an "outperform" rating in a research note on Monday, July 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Strategic Education in a research report on Tuesday, April 21st. Finally, Wall Street Zen cut shares of Strategic Education from a "buy" rating to a "hold" rating in a research note on Wednesday, June 24th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $88.67.

Strategic Education Price Performance

The company has a 50 day simple moving average of $79.17 and a 200-day simple moving average of $80.47. The firm has a market cap of $1.74 billion, a PE ratio of 13.55, a price-to-earnings-growth ratio of 0.79 and a beta of 0.50.

Strategic Education (NASDAQ:STRA - Get Free Report) last announced its quarterly earnings data 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). Strategic Education had a return on equity of 8.78% and a net margin of 10.21%.The business 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 firm posted $1.30 earnings per share. The company's revenue was up .8% compared to the same quarter last year. On average, sell-side analysts predict that Strategic Education Inc. will post 7.2 EPS for the current fiscal year.

Strategic Education Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Friday, May 22nd were paid a $0.60 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.40 annualized dividend and a yield of 3.1%. Strategic Education's payout ratio is currently 42.40%.

Insider Activity

In other news, insider Christa Hokenson sold 2,000 shares of the business's 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 approximately $5,215,600. The trade was a 2.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Thawley bought 665 shares of the company's stock in a transaction that occurred on Friday, April 24th. The shares were bought at an average price of $72.71 per share, with a total value of $48,352.15. Following the completion of the acquisition, the director directly owned 12,154 shares in the company, valued at $883,717.34. This trade represents a 5.79% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Strategic Education

Large investors have recently bought and sold shares of the stock. Wedge Capital Management L L P NC boosted its stake in shares of Strategic Education by 18.2% during the second quarter. Wedge Capital Management L L P NC now owns 22,748 shares of the health services provider's stock valued at $1,743,000 after purchasing an additional 3,500 shares during the period. Pacer Advisors Inc. increased its stake in shares of Strategic Education by 18.5% in the first quarter. Pacer Advisors Inc. now owns 74,749 shares of the health services provider's stock worth $6,201,000 after buying an additional 11,671 shares during the period. Axiom Investment Management LLC purchased a new position in shares of Strategic Education in the first quarter worth $25,000. Segall Bryant & Hamill LLC bought a new stake in Strategic Education during the 1st quarter valued at $1,232,000. Finally, Wellington Grp LLC raised its holdings in Strategic Education by 9.1% during the 1st quarter. Wellington Grp LLC now owns 6,657 shares of the health services provider's stock valued at $552,000 after buying an additional 554 shares during the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

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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