Zacks Research Has Positive Outlook for STRA Q2 Earnings

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Strategic Education to $2.03 from $2.01 and kept a Strong-Buy rating on the stock.
• The broader analyst picture is mixed but generally constructive, with a Moderate Buy consensus and an average price target of $87, even as some firms trimmed targets and issued Hold ratings.
• Strategic Education recently missed Q1 expectations, reporting $1.42 EPS and revenue of $305.93 million, while also paying a quarterly dividend of $0.60 per share for a 3.0% annualized yield.

Strategic Education Inc. (NASDAQ:STRA - Free Report) - Equities research analysts at Zacks Research boosted their Q2 2027 earnings estimates for shares of Strategic Education in a research note issued on Wednesday, June 3rd. Zacks Research analyst Team now forecasts that the health services provider will post earnings per share of $2.03 for the quarter, up from their prior forecast of $2.01. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Strategic Education's current full-year earnings is $7.20 per share.

A number of other equities research analysts have also issued reports on the stock. Truist Financial cut their price target on shares of Strategic Education from $85.00 to $80.00 and set a "hold" rating on the stock in a report on Monday, April 27th. Wall Street Zen raised shares of Strategic Education from a "hold" rating to a "buy" rating in a research report on Sunday. Barrington Research dropped their target price on shares of Strategic Education from $105.00 to $95.00 and set an "outperform" rating for the company in a research report on Thursday, April 23rd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Strategic Education in a research report on Tuesday, April 21st. Finally, BMO Capital Markets dropped their target price on shares of Strategic Education from $95.00 to $86.00 and set an "outperform" rating for the company in a research report on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $87.00.

Strategic Education Stock Down 0.1%

Shares of Strategic Education stock opened at $79.05 on Thursday. The firm has a market cap of $1.79 billion, a PE ratio of 13.97, a price-to-earnings-growth ratio of 0.73 and a beta of 0.51. Strategic Education has a 12-month low of $69.70 and a 12-month high of $92.22. The company's fifty day simple moving average is $80.10 and its two-hundred day simple moving average is $80.41.

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

Strategic Education Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 22nd were given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date of this dividend was Friday, May 22nd. Strategic Education's dividend payout ratio (DPR) is 42.40%.

Insider Activity at Strategic Education

In other Strategic Education news, Director Michael Thawley purchased 665 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was bought at an average cost of $72.71 per share, with a total value of $48,352.15. Following the transaction, the director directly owned 12,154 shares in the company, valued at approximately $883,717.34. The trade was a 5.79% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, General Counsel Lizette Benedi Herraiz sold 7,598 shares of Strategic Education stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $79.97, for a total transaction of $607,612.06. Following the transaction, the general counsel directly owned 58,562 shares of the company's stock, valued at approximately $4,683,203.14. This trade represents a 11.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of STRA. Bank of Montreal Can lifted its position in Strategic Education by 62,355.4% during the 4th quarter. Bank of Montreal Can now owns 1,467,702 shares of the health services provider's stock valued at $117,710,000 after acquiring an additional 1,465,352 shares during the period. AQR Capital Management LLC lifted its position in Strategic Education by 188.6% during the 2nd quarter. AQR Capital Management LLC now owns 245,296 shares of the health services provider's stock valued at $20,882,000 after acquiring an additional 160,303 shares during the period. Millennium Management LLC lifted its position in Strategic Education by 115.4% during the 3rd quarter. Millennium Management LLC now owns 216,117 shares of the health services provider's stock valued at $18,588,000 after acquiring an additional 115,801 shares during the period. Cubist Systematic Strategies LLC purchased a new position in Strategic Education during the 2nd quarter valued at about $9,615,000. Finally, Arrowstreet Capital Limited Partnership lifted its position in Strategic Education by 30.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 454,509 shares of the health services provider's stock valued at $37,706,000 after acquiring an additional 106,487 shares during the period. 93.27% of the stock is owned by hedge funds and other institutional investors.

Strategic Education Company Profile

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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