Strategic Education (NASDAQ:STRA) Lowered to “Hold” Rating by Zacks Research

Zacks Research cut shares of Strategic Education (NASDAQ:STRA) from a strong-buy rating to a hold rating in a research note released on Tuesday morning,Zacks.com reports. Zacks Research also issued estimates for Strategic Education’s Q2 2027 earnings at $2.03 EPS.

Several other analysts have also issued reports on the stock. BMO Capital Markets cut their price target 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. Truist Financial cut 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. Weiss Ratings restated a “hold (c)” rating on shares of Strategic Education in a research report on Tuesday, April 21st. Wall Street Zen upgraded shares of Strategic Education from a “hold” rating to a “buy” rating in a research report on Sunday. Finally, Barrington Research cut their price target 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. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $87.00.

Strategic Education Stock Performance

Shares of NASDAQ:STRA opened at $79.05 on Tuesday. Strategic Education has a 52-week low of $69.70 and a 52-week high of $92.22. The firm has a fifty day moving average of $80.10 and a 200 day moving average of $80.41. The firm has a market capitalization 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 (NASDAQ:STRA) last announced 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 company had revenue of $305.93 million during the quarter, compared to analysts’ expectations of $329.81 million. During the same quarter last year, the firm posted $1.30 earnings per share. The firm’s revenue was up .8% on a year-over-year basis. On average, sell-side analysts forecast that Strategic Education will post 7.2 EPS for the current fiscal year.

Strategic Education Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 22nd were paid a $0.60 dividend. 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 is presently 42.40%.

Insider Buying and Selling

In related news, Director Michael Thawley purchased 665 shares of the firm’s 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 completion of the purchase, the director directly owned 12,154 shares in the company, valued at approximately $883,717.34. This represents a 5.79% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Lizette Benedi Herraiz sold 7,598 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $79.97, for a total transaction of $607,612.06. Following the completion of the transaction, the general counsel directly owned 58,562 shares of the company’s stock, valued at approximately $4,683,203.14. The trade was 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 owned by insiders.

Hedge Funds Weigh In On Strategic Education

A number of institutional investors have recently bought and sold shares of the stock. Axiom Investment Management LLC bought a new position in shares of Strategic Education during the first quarter valued at approximately $25,000. Allworth Financial LP increased its stake in shares of Strategic Education by 88.5% during the third quarter. Allworth Financial LP now owns 294 shares of the health services provider’s stock valued at $25,000 after purchasing an additional 138 shares in the last quarter. Hantz Financial Services Inc. increased its stake in shares of Strategic Education by 154.2% during the fourth quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider’s stock valued at $27,000 after purchasing an additional 202 shares in the last quarter. Osaic Holdings Inc. increased its stake in shares of Strategic Education by 85.2% during the second quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider’s stock valued at $33,000 after purchasing an additional 178 shares in the last quarter. Finally, Sankala Group LLC bought a new position in shares of Strategic Education during the fourth quarter valued at approximately $37,000. 93.27% of the stock is owned by institutional investors.

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.