2U Inc. (TWOU) Downgraded to Hold at Zacks Investment Research
2U Inc. (NASDAQ:TWOU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “2U, Inc. is an education technology company. It is a provider of cloud-based software-as-a-service (SaaS) solutions that enables nonprofit colleges and universities to deliver their education to students anywhere. The Company offers graduate and undergraduate degree programs in social work, science, public administration, healthcare, laws, education, and business administration. It also offers a suite of technology-enabled services including content development, student acquisition, and state authorization services, as well as application advising, student and faculty support, and in-program student field placements. 2U, Inc. is based in Landover, Maryland. “
A number of other research analysts have also issued reports on TWOU. Needham & Company LLC started coverage on 2U in a research report on Friday, July 15th. They set a “buy” rating and a $40.00 price target for the company. Barrington Research boosted their price target on 2U from $33.00 to $42.00 and gave the stock an “outperform” rating in a research report on Friday, August 5th. BMO Capital Markets reiterated a “buy” rating and set a $42.00 price target on shares of 2U in a research report on Friday, August 5th. Pacific Crest reissued a “buy” rating and issued a $38.00 price objective on shares of 2U in a research note on Friday, August 5th. Finally, Compass Point boosted their price objective on 2U from $36.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, August 5th. One equities research analyst has rated the stock with a hold rating and ten have issued a buy rating to the company. 2U presently has an average rating of “Buy” and an average target price of $39.22.
Shares of 2U (NASDAQ:TWOU) opened at 36.28 on Thursday. The stock’s 50 day moving average price is $35.90 and its 200 day moving average price is $30.63. The stock’s market cap is $1.70 billion. 2U has a 1-year low of $14.94 and a 1-year high of $38.91.
2U (NASDAQ:TWOU) last released its quarterly earnings data on Thursday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.12) by $0.03. 2U had a negative return on equity of 11.97% and a negative net margin of 13.20%. The business earned $49.10 million during the quarter, compared to analyst estimates of $48.50 million. During the same quarter in the previous year, the firm posted ($0.14) EPS. The business’s revenue for the quarter was up 39.3% compared to the same quarter last year. On average, equities research analysts anticipate that 2U will post ($0.16) EPS for the current fiscal year.
In other 2U news, insider James Kenigsberg sold 5,468 shares of the company’s stock in a transaction that occurred on Thursday, September 22nd. The stock was sold at an average price of $36.58, for a total value of $200,019.44. Following the completion of the transaction, the insider now owns 58,654 shares of the company’s stock, valued at approximately $2,145,563.32. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Edward S. Macias purchased 714 shares of the business’s stock in a transaction on Thursday, September 1st. The stock was purchased at an average cost of $35.43 per share, with a total value of $25,297.02. Following the acquisition, the director now owns 16,748 shares in the company, valued at $593,381.64. The disclosure for this purchase can be found here. Corporate insiders own 20.90% of the company’s stock.
Several institutional investors have recently modified their holdings of TWOU. Legal & General Group Plc boosted its position in shares of 2U by 38.3% in the first quarter. Legal & General Group Plc now owns 4,554 shares of the company’s stock worth $105,000 after buying an additional 1,262 shares during the last quarter. BNP Paribas Arbitrage SA raised its stake in 2U by 95.0% in the third quarter. BNP Paribas Arbitrage SA now owns 3,465 shares of the company’s stock worth $133,000 after buying an additional 1,688 shares during the period. Teacher Retirement System of Texas raised its stake in 2U by 43.6% in the second quarter. Teacher Retirement System of Texas now owns 4,831 shares of the company’s stock worth $142,000 after buying an additional 1,467 shares during the period. PNC Financial Services Group Inc. raised its stake in 2U by 493.2% in the second quarter. PNC Financial Services Group Inc. now owns 6,080 shares of the company’s stock worth $178,000 after buying an additional 5,055 shares during the period. Finally, Fox Run Management L.L.C. acquired a new stake in 2U during the second quarter worth approximately $262,000.
2U, Inc is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of an online learning environment, Online Campus, which acts as the hub for student and faculty academic and social interaction, and operations applications.
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