Barrington Research Has Negative View of STRA Q3 Earnings

Key Points

• Barrington Research has lowered its Q3 2025 earnings per share estimate for Strategic Education to $1.28, down from $1.29, but maintains an "Outperform" rating with a price target of $105.00.
• Strategic Education reported Q3 earnings of $1.52 per share, exceeding analyst expectations, although revenue slightly missed at $321.47 million compared to the forecast.
• The company will pay a quarterly dividend of $0.60 on September 15, resulting in an annualized yield of 3.2% with a payout ratio of approximately 49.90%.

Strategic Education Inc. (NASDAQ:STRA - Free Report) - Investment analysts at Barrington Research cut their Q3 2025 earnings per share (EPS) estimates for shares of Strategic Education in a research note issued on Wednesday, July 30th. Barrington Research analyst A. Paris now forecasts that the health services provider will earn $1.28 per share for the quarter, down from their prior forecast of $1.29. Barrington Research has a "Outperform" rating and a $105.00 price objective on the stock. The consensus estimate for Strategic Education's current full-year earnings is $4.79 per share. Barrington Research also issued estimates for Strategic Education's Q4 2025 earnings at $1.66 EPS and FY2025 earnings at $5.76 EPS.

Several other equities research analysts also recently issued reports on the company. Wall Street Zen downgraded Strategic Education from a "buy" rating to a "hold" rating in a report on Saturday. BMO Capital Markets lowered their price target on Strategic Education from $98.00 to $88.00 and set an "outperform" rating on the stock in a report on Friday. Finally, Truist Financial set a $105.00 price target on shares of Strategic Education in a research report on Thursday, April 24th.

Strategic Education Stock Performance

Shares of Strategic Education stock traded up $0.82 on Friday, hitting $74.69. The company's stock had a trading volume of 63,843 shares, compared to its average volume of 173,783. Strategic Education has a 1 year low of $72.25 and a 1 year high of $104.51. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 15.49, a price-to-earnings-growth ratio of 0.88 and a beta of 0.58. The firm has a fifty day moving average price of $83.16 and a 200-day moving average price of $86.25.

Strategic Education (NASDAQ:STRA - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The health services provider reported $1.52 EPS for the quarter, topping the consensus estimate of $1.42 by $0.10. The company had revenue of $321.47 million for the quarter, compared to the consensus estimate of $322.84 million. Strategic Education had a return on equity of 7.52% and a net margin of 9.27%. Strategic Education's quarterly revenue was up 2.9% on a year-over-year basis. During the same period last year, the business posted $1.33 EPS.

Strategic Education Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, September 5th will be given 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 is 49.90%.

Institutional Investors Weigh In On Strategic Education

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Nuveen LLC bought a new position in shares of Strategic Education during the 1st quarter worth about $31,497,000. Burgundy Asset Management Ltd. lifted its holdings in shares of Strategic Education by 17.3% during the 1st quarter. Burgundy Asset Management Ltd. now owns 1,475,831 shares of the health services provider's stock worth $123,911,000 after acquiring an additional 217,151 shares during the period. Norges Bank bought a new position in Strategic Education during the 4th quarter valued at about $15,715,000. Arrowstreet Capital Limited Partnership lifted its holdings in Strategic Education by 207.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 175,141 shares of the health services provider's stock valued at $16,362,000 after purchasing an additional 118,151 shares during the last quarter. Finally, Public Sector Pension Investment Board lifted its holdings in Strategic Education by 129.9% during the 1st quarter. Public Sector Pension Investment Board now owns 139,374 shares of the health services provider's stock valued at $11,702,000 after purchasing an additional 78,740 shares during the last quarter. Hedge funds and other institutional investors own 93.27% of the company's stock.

About Strategic Education

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.