Stride (NYSE:LRN) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Stride, Inc. shares surged 16.3% to open at $149.00 after reporting a substantial EPS of $2.29, surpassing analyst expectations of $1.83.
• The company saw quarterly revenue of $653.65 million, marking a year-over-year increase of 22.4% and exceeding analysts' estimates by over $27 million.
• Analyst ratings have improved, with multiple firms upgrading Stride from "hold" to "buy," reflecting growing confidence in the stock's performance.

Stride, Inc. (NYSE:LRN - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $128.23, but opened at $149.00. Stride shares last traded at $155.12, with a volume of 468,546 shares.

The company reported $2.29 earnings per share for the quarter, topping analysts' consensus estimates of $1.83 by $0.46. The firm had revenue of $653.65 million during the quarter, compared to analysts' expectations of $626.23 million. Stride had a return on equity of 25.51% and a net margin of 11.97%. The business's quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.42 EPS.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on LRN. Canaccord Genuity Group raised their price objective on Stride from $145.00 to $155.00 and gave the stock a "buy" rating in a research report on Monday, April 28th. William Blair reissued an "outperform" rating on shares of Stride in a research report on Wednesday, April 30th. Barrington Research restated an "outperform" rating and issued a $170.00 target price on shares of Stride in a research note on Thursday, July 24th. BMO Capital Markets restated an "outperform" rating on shares of Stride in a research note on Thursday, May 1st. Finally, Wall Street Zen upgraded Stride from a "hold" rating to a "buy" rating in a research note on Saturday, June 21st. Two research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $135.17.

Hedge Funds Weigh In On Stride

A number of institutional investors have recently modified their holdings of the stock. Golden State Wealth Management LLC raised its stake in shares of Stride by 37.5% during the 2nd quarter. Golden State Wealth Management LLC now owns 275 shares of the company's stock valued at $40,000 after buying an additional 75 shares during the last quarter. Rezny Wealth Management Inc. raised its stake in shares of Stride by 0.6% during the 2nd quarter. Rezny Wealth Management Inc. now owns 14,152 shares of the company's stock valued at $2,055,000 after buying an additional 83 shares during the last quarter. Vident Advisory LLC raised its stake in shares of Stride by 2.9% during the 1st quarter. Vident Advisory LLC now owns 2,941 shares of the company's stock valued at $372,000 after buying an additional 84 shares during the last quarter. Vestcor Inc raised its stake in shares of Stride by 4.6% during the 1st quarter. Vestcor Inc now owns 2,328 shares of the company's stock valued at $294,000 after buying an additional 102 shares during the last quarter. Finally, Maryland State Retirement & Pension System raised its stake in shares of Stride by 0.9% during the 2nd quarter. Maryland State Retirement & Pension System now owns 12,614 shares of the company's stock valued at $1,831,000 after buying an additional 109 shares during the last quarter. Hedge funds and other institutional investors own 98.24% of the company's stock.

Stride Price Performance

The stock has a 50 day simple moving average of $138.65 and a two-hundred day simple moving average of $137.67. The firm has a market cap of $6.53 billion, a PE ratio of 24.85, a price-to-earnings-growth ratio of 0.85 and a beta of 0.10. The company has a debt-to-equity ratio of 0.31, a quick ratio of 5.53 and a current ratio of 5.39.

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.