Stride (NYSE:LRN) Issues Quarterly Earnings Results, Beats Expectations By $0.46 EPS

Key Points

• Stride (NYSE:LRN) announced quarterly earnings of $2.29 per share, exceeding estimates by $0.46.
• The company's strong performance is reflected in its return on equity of 23.36% and net margin of 13.10%.
• Institutional investors hold a significant 98.24% ownership of Stride's stock, indicating strong confidence in the company.

Stride (NYSE:LRN - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $2.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.83 by $0.46, Zacks reports. Stride had a net margin of 11.97% and a return on equity of 25.51%. The company had revenue of $653.65 million during the quarter, compared to analysts' expectations of $626.23 million. During the same period last year, the company posted $1.42 EPS. Stride's revenue was up 22.4% on a year-over-year basis.

Stride Stock Performance

Shares of LRN traded up $5.55 during mid-day trading on Friday, hitting $149.60. 991,078 shares of the company traded hands, compared to its average volume of 699,123. The company has a debt-to-equity ratio of 0.31, a quick ratio of 5.53 and a current ratio of 5.39. The stock has a 50-day moving average price of $138.65 and a two-hundred day moving average price of $137.67. Stride has a 1 year low of $63.25 and a 1 year high of $162.30. The stock has a market cap of $6.53 billion, a price-to-earnings ratio of 24.85, a P/E/G ratio of 0.85 and a beta of 0.10.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Stride by 31.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 134,455 shares of the company's stock valued at $17,009,000 after purchasing an additional 32,470 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Stride by 67.3% during the first quarter. AQR Capital Management LLC now owns 28,547 shares of the company's stock valued at $3,611,000 after purchasing an additional 11,481 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Stride by 12.4% during the first quarter. Empowered Funds LLC now owns 18,202 shares of the company's stock valued at $2,303,000 after purchasing an additional 2,008 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Stride by 80.9% during the first quarter. NewEdge Advisors LLC now owns 5,124 shares of the company's stock valued at $648,000 after purchasing an additional 2,291 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its position in Stride by 62.7% during the first quarter. Geneos Wealth Management Inc. now owns 340 shares of the company's stock valued at $43,000 after buying an additional 131 shares during the period. 98.24% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts recently issued reports on LRN shares. Wall Street Zen raised shares of Stride from a "hold" rating to a "buy" rating in a research report on Saturday, June 21st. BMO Capital Markets reaffirmed an "outperform" rating on shares of Stride in a report on Thursday, May 1st. Barrington Research reaffirmed an "outperform" rating and issued a $170.00 target price on shares of Stride in a report on Thursday, July 24th. William Blair reaffirmed an "outperform" rating on shares of Stride in a report on Wednesday, April 30th. Finally, Canaccord Genuity Group lifted their target price on shares of Stride from $145.00 to $155.00 and gave the stock a "buy" rating in a report on Monday, April 28th. Two equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $143.40.

Stride Company Profile

Stride, Inc, a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students.