Stride (NYSE:LRN) Cut to "Market Perform" at William Blair

Key Points

• William Blair downgraded Stride from “outperform” to “market perform,” while the broader analyst consensus remains “Hold” with an average price target of $109.75.
• Stride shares fell $14.37 to $83.34, with the stock trading between a 12-month range of $60.61 and $171.17 and carrying a market capitalization of approximately $3.54 billion.
• The company exceeded quarterly expectations, reporting $2.30 in EPS versus the $2.21 consensus and $629.87 million in revenue; institutional investors own 98.24% of Stride’s outstanding shares.

Stride (NYSE:LRN - Get Free Report) was downgraded by equities research analysts at William Blair from an "outperform" rating to a "market perform" rating in a note issued to investors on Thursday, MarketBeat reports.

Several other analysts have also recently weighed in on LRN. BMO Capital Markets reaffirmed a "market perform" rating on shares of Stride in a research note on Monday, June 15th. Barrington Research restated an "outperform" rating and issued a $125.00 target price on shares of Stride in a research note on Thursday, April 16th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Stride in a report on Wednesday, July 8th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Stride presently has a consensus rating of "Hold" and an average price target of $109.75.

Stride Price Performance

Shares of NYSE:LRN traded down $14.37 on Thursday, hitting $83.34. The stock had a trading volume of 1,858,773 shares, compared to its average volume of 953,423. Stride has a twelve month low of $60.61 and a twelve month high of $171.17. The company has a debt-to-equity ratio of 0.29, a quick ratio of 6.14 and a current ratio of 6.21. The firm's 50 day moving average price is $90.04 and its 200-day moving average price is $87.42. The company has a market capitalization of $3.54 billion, a price-to-earnings ratio of 12.86, a price-to-earnings-growth ratio of 0.54 and a beta of 0.10.

Stride (NYSE:LRN - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $2.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.21 by $0.09. The business had revenue of $629.87 million during the quarter, compared to analysts' expectations of $629.69 million. Stride had a net margin of 12.15% and a return on equity of 25.20%. The firm's revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter last year, the company posted $2.02 EPS. On average, equities research analysts predict that Stride will post 8.21 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of LRN. Newbridge Financial Services Group Inc. bought a new position in Stride in the second quarter valued at approximately $25,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of Stride by 78.7% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 193 shares of the company's stock worth $28,000 after purchasing an additional 85 shares during the period. Leonteq Securities AG acquired a new position in Stride in the fourth quarter valued at about $35,000. EverSource Wealth Advisors LLC grew its position in shares of Stride by 108.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 432 shares of the company's stock worth $38,000 after buying an additional 225 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its position in shares of Stride by 482.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 617 shares of the company's stock valued at $40,000 after acquiring an additional 511 shares during the period. Institutional investors own 98.24% of the company's stock.

About Stride

Stride, Inc NYSE: LRN is a technology-driven education company that designs and delivers online learning solutions for students and adult learners. Through long-term partnerships with state-authorized public school districts, Stride operates virtual academies that serve K-12 students across the United States. The company's blended-learning model combines digital curriculum, live teaching support and data analytics to personalize instruction and monitor student progress.

In addition to its K-12 offerings, Stride provides a portfolio of career and workforce readiness programs under its Stride Career Prep division.

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