Strategic Education's (STRA) Outperform Rating Reaffirmed at Barrington Research

Key Points

• Strategic Education (NASDAQ: STRA) has had its "outperform" rating reissued by Barrington Research, with a target price of $105.00, indicating a potential upside of 41.41% from its current price.
• The company's stock traded down 6.5%, hitting $74.25, with a significant trading volume of 314,033 shares, much higher than its average volume of 173,229 shares.
• Strategic Education reported $1.52 earnings per share for its most recent quarter, beating analyst expectations, although its revenue was slightly below consensus estimates at $321.47 million.

Barrington Research reissued their outperform rating on shares of Strategic Education (NASDAQ:STRA - Free Report) in a research note released on Wednesday morning,Benzinga reports. The firm currently has a $105.00 target price on the health services provider's stock. Barrington Research also issued estimates for Strategic Education's Q3 2025 earnings at $1.28 EPS, Q4 2025 earnings at $1.66 EPS and FY2025 earnings at $5.76 EPS.

Several other equities analysts have also recently weighed in on STRA. BMO Capital Markets raised their target price on shares of Strategic Education from $97.00 to $98.00 and gave the company an "outperform" rating in a research note on Monday, April 28th. Wall Street Zen raised shares of Strategic Education from a "hold" rating to a "buy" rating in a research note on Friday, April 25th. Finally, Truist Financial set a $105.00 target price on shares of Strategic Education in a research note on Thursday, April 24th.

Strategic Education Trading Up 1.0%

STRA stock traded up $0.74 on Wednesday, hitting $74.88. The company had a trading volume of 225,867 shares, compared to its average volume of 174,705. Strategic Education has a 12-month low of $72.25 and a 12-month high of $104.51. The stock's 50-day simple moving average is $83.69 and its 200 day simple moving average is $86.68. The stock has a market cap of $1.81 billion, a price-to-earnings ratio of 15.57, a P/E/G ratio of 0.87 and a beta of 0.52.

Strategic Education (NASDAQ:STRA - Get Free Report) last announced its earnings results on Wednesday, July 30th. The health services provider reported $1.52 EPS for the quarter, beating analysts' consensus estimates of $1.42 by $0.10. Strategic Education had a net margin of 9.27% and a return on equity of 7.52%. The business had revenue of $321.47 million during the quarter, compared to analysts' expectations of $322.84 million. During the same period in the prior year, the company earned $1.33 earnings per share. The firm's revenue was up 2.9% on a year-over-year basis. Research analysts forecast that Strategic Education will post 4.79 earnings per share for the current year.

Strategic Education Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, September 5th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Friday, September 5th. Strategic Education's dividend payout ratio (DPR) is 49.90%.

Institutional Investors Weigh In On Strategic Education

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its holdings in Strategic Education by 148.9% during the 2nd quarter. GAMMA Investing LLC now owns 331 shares of the health services provider's stock valued at $28,000 after buying an additional 198 shares in the last quarter. Sterling Capital Management LLC lifted its holdings in Strategic Education by 809.1% during the 4th quarter. Sterling Capital Management LLC now owns 700 shares of the health services provider's stock valued at $65,000 after buying an additional 623 shares in the last quarter. Kestra Investment Management LLC bought a new stake in Strategic Education during the 1st quarter valued at about $82,000. Covestor Ltd raised its holdings in shares of Strategic Education by 44.0% in the 4th quarter. Covestor Ltd now owns 1,431 shares of the health services provider's stock valued at $134,000 after purchasing an additional 437 shares in the last quarter. Finally, R Squared Ltd bought a new stake in shares of Strategic Education in the 2nd quarter valued at about $202,000. Institutional investors own 93.27% of the company's stock.

Strategic Education Company Profile

Strategic Education, Inc, through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through U.S. Higher Education, Australia/New Zealand, and Education Technology Services segments. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute.