Stride (NYSE:LRN) Shares Gap Down - Here's Why

Key Points

• Stride shares fell sharply, opening at $90.91 versus a prior close of $97.71 and last trading near $87.48.
• Analyst sentiment is mixed, with three Buy ratings and four Holds; the consensus rating is Hold and the average price target is $109.75.
• Stride recently exceeded quarterly expectations, reporting $2.30 in adjusted earnings per share versus a $2.21 estimate, while revenue rose 2.7% year over year to $629.87 million.

Stride, Inc. (NYSE:LRN - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $97.71, but opened at $90.91. Stride shares last traded at $87.4760, with a volume of 241,251 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Stride in a research note on Wednesday, July 8th. BMO Capital Markets reissued 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 price objective on shares of Stride in a report on Thursday, April 16th. Finally, William Blair reaffirmed an "outperform" rating on shares of Stride in a research note on Monday, June 15th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $109.75.

Stride Stock Performance

The company has a current ratio of 6.21, a quick ratio of 6.14 and a debt-to-equity ratio of 0.29. The stock's fifty day simple moving average is $90.04 and its 200 day simple moving average is $87.42. The company has a market cap of $3.58 billion, a price-to-earnings ratio of 13.01, a P/E/G ratio of 0.54 and a beta of 0.10.

Stride (NYSE:LRN - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $2.30 earnings per share for the quarter, topping the consensus estimate of $2.21 by $0.09. Stride had a return on equity of 25.20% and a net margin of 12.15%.The business had revenue of $629.87 million for the quarter, compared to analysts' expectations of $629.69 million. During the same period in the previous year, the firm posted $2.02 EPS. The business's revenue for the quarter was up 2.7% compared to the same quarter last year. As a group, analysts anticipate that Stride, Inc. will post 8.21 earnings per share for the current year.

Institutional Trading of Stride

Large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Stride by 78.7% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 193 shares of the company's stock worth $28,000 after acquiring an additional 85 shares during the period. GAMMA Investing LLC increased its position in Stride by 2.8% during the second quarter. GAMMA Investing LLC now owns 4,716 shares of the company's stock worth $407,000 after purchasing an additional 128 shares during the last quarter. Geneos Wealth Management Inc. increased its position in Stride by 62.7% during the first quarter. Geneos Wealth Management Inc. now owns 340 shares of the company's stock worth $43,000 after purchasing an additional 131 shares during the last quarter. Maryland State Retirement & Pension System raised its stake in Stride by 2.4% during the fourth quarter. Maryland State Retirement & Pension System now owns 6,338 shares of the company's stock worth $412,000 after purchasing an additional 149 shares during the period. Finally, Newbridge Financial Services Group Inc. purchased a new position in Stride during the second quarter worth about $25,000. 98.24% of the stock is currently owned by hedge funds and other institutional investors.

Stride Company Profile

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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