Zacks Research Has Positive Forecast for STRA Q2 Earnings

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for Strategic Education to $1.77 (from $1.73) and rates STRA a Strong-Buy, providing EPS forecasts through FY2028 (e.g., FY2027 $8.05, FY2028 $9.70).
• Strategic Education recently reported $1.42 EPS for the quarter, missing the $1.51 consensus, and posted revenue of $305.93M versus $329.81M expected (revenue up 0.8% year-over-year).
• The company declared a $0.60 quarterly dividend (3.0% yield) payable June 1 with a May 22 ex-dividend/record date, and insiders showed mixed activity with the CEO selling shares while the chairman bought 718 shares.

Strategic Education Inc. (NASDAQ:STRA - Free Report) - Research analysts at Zacks Research boosted their Q2 2026 EPS estimates for shares of Strategic Education in a research report issued on Thursday, May 7th. Zacks Research analyst Team now expects that the health services provider will earn $1.77 per share for the quarter, up from their previous forecast of $1.73. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Strategic Education's current full-year earnings is $7.12 per share. Zacks Research also issued estimates for Strategic Education's Q3 2026 earnings at $1.85 EPS, Q4 2026 earnings at $2.01 EPS, FY2026 earnings at $7.05 EPS, Q2 2027 earnings at $2.01 EPS, Q3 2027 earnings at $2.05 EPS, Q4 2027 earnings at $2.31 EPS, FY2027 earnings at $8.05 EPS, Q1 2028 earnings at $2.20 EPS and FY2028 earnings at $9.70 EPS.

Strategic Education (NASDAQ:STRA - Get Free Report) last issued its earnings results on Thursday, April 23rd. The health services provider reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.51 by ($0.09). Strategic Education had a return on equity of 8.78% and a net margin of 10.21%.The business had revenue of $305.93 million for the quarter, compared to the consensus estimate of $329.81 million. During the same quarter in the previous year, the company earned $1.30 earnings per share. The firm's revenue was up .8% on a year-over-year basis.

Other research analysts have also recently issued reports about the stock. Barrington Research dropped their target price on shares of Strategic Education from $105.00 to $95.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Wall Street Zen cut shares of Strategic Education from a "strong-buy" rating to a "buy" rating in a report on Sunday, April 26th. BMO Capital Markets dropped their target price on shares of Strategic Education from $95.00 to $86.00 and set an "outperform" rating on the stock in a report on Monday, April 27th. Truist Financial decreased their price target on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating for the company in a research report on Monday, April 27th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Strategic Education in a research report on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $87.00.

Strategic Education Price Performance

Shares of Strategic Education stock opened at $79.09 on Friday. Strategic Education has a 1 year low of $69.70 and a 1 year high of $93.45. The firm's 50-day moving average is $81.00 and its two-hundred day moving average is $80.52. The stock has a market cap of $1.79 billion, a price-to-earnings ratio of 13.97, a PEG ratio of 0.74 and a beta of 0.52.

Strategic Education Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 22nd will be given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Friday, May 22nd. Strategic Education's dividend payout ratio is presently 42.40%.

Insider Buying and Selling at Strategic Education

In related news, CEO Raymond Karl Mcdonnell sold 38,840 shares of Strategic Education stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $75.35, for a total value of $2,926,594.00. Following the completion of the sale, the chief executive officer directly owned 106,332 shares in the company, valued at $8,012,116.20. This trade represents a 26.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Chairman Robert S. Silberman bought 718 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was bought at an average price of $80.82 per share, with a total value of $58,028.76. Following the completion of the purchase, the chairman directly owned 319,870 shares in the company, valued at $25,851,893.40. This represents a 0.22% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders sold 62,420 shares of company stock valued at $4,843,218. 3.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Strategic Education

Institutional investors have recently bought and sold shares of the stock. Allworth Financial LP boosted its stake in Strategic Education by 88.5% in the 3rd quarter. Allworth Financial LP now owns 294 shares of the health services provider's stock worth $25,000 after purchasing an additional 138 shares in the last quarter. Hantz Financial Services Inc. raised its position in Strategic Education by 154.2% during the 4th quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider's stock worth $27,000 after buying an additional 202 shares during the last quarter. Osaic Holdings Inc. raised its position in Strategic Education by 85.2% during the 2nd quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider's stock worth $33,000 after buying an additional 178 shares during the last quarter. Sankala Group LLC purchased a new position in Strategic Education during the 4th quarter worth approximately $37,000. Finally, Rockefeller Capital Management L.P. raised its position in Strategic Education by 305.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 616 shares of the health services provider's stock worth $49,000 after buying an additional 464 shares during the last quarter. 93.27% of the stock is currently owned by institutional investors and hedge funds.

About Strategic Education

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.

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