Strategic Education (NASDAQ:STRA) Reaches New 52-Week Low Following Weak Earnings

Strategic Education, Inc. (NASDAQ:STRA - Get Free Report)'s share price hit a new 52-week low on Friday following a weaker than expected earnings announcement. The stock traded as low as $79.37 and last traded at $79.80, with a volume of 319728 shares changing hands. The stock had previously closed at $97.94.

The health services provider reported $1.27 EPS for the quarter, missing analysts' consensus estimates of $1.37 by ($0.10). Strategic Education had a return on equity of 7.61% and a net margin of 10.44%. The company had revenue of $311.46 million during the quarter, compared to analyst estimates of $315.18 million.

Strategic Education Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 10th will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 2.99%. The ex-dividend date is Monday, March 10th. Strategic Education's payout ratio is 51.39%.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. StockNews.com raised Strategic Education from a "hold" rating to a "buy" rating in a research note on Wednesday, February 26th. Barrington Research decreased their target price on shares of Strategic Education from $135.00 to $120.00 and set an "outperform" rating for the company in a research report on Thursday. Finally, BMO Capital Markets dropped their price target on shares of Strategic Education from $114.00 to $97.00 and set an "outperform" rating on the stock in a research report on Monday. Five research analysts have rated the stock with a buy rating, Based on data from MarketBeat, Strategic Education has a consensus rating of "Buy" and a consensus price target of $115.25.

Remove Ads

Insiders Place Their Bets

In other news, CFO Daniel Wayne Jackson sold 6,025 shares of the business's stock in a transaction that occurred on Tuesday, February 25th. The stock was sold at an average price of $97.83, for a total value of $589,425.75. Following the transaction, the chief financial officer now owns 81,756 shares in the company, valued at $7,998,189.48. The trade was a 6.86 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Raymond Karl Mcdonnell sold 31,855 shares of the company's stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $97.83, for a total value of $3,116,374.65. Following the completion of the transaction, the chief executive officer now directly owns 140,281 shares of the company's stock, valued at approximately $13,723,690.23. This represents a 18.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 3.10% of the company's stock.

Institutional Investors Weigh In On Strategic Education

Several large investors have recently made changes to their positions in the business. Wilmington Savings Fund Society FSB purchased a new position in shares of Strategic Education in the 3rd quarter worth about $37,000. R Squared Ltd purchased a new position in Strategic Education in the fourth quarter valued at about $42,000. Smartleaf Asset Management LLC grew its position in shares of Strategic Education by 394.8% during the 4th quarter. Smartleaf Asset Management LLC now owns 480 shares of the health services provider's stock valued at $44,000 after acquiring an additional 383 shares during the period. Allspring Global Investments Holdings LLC bought a new position in shares of Strategic Education during the 3rd quarter valued at approximately $55,000. Finally, Sterling Capital Management LLC increased its stake in shares of Strategic Education by 809.1% during the 4th quarter. Sterling Capital Management LLC now owns 700 shares of the health services provider's stock worth $65,000 after purchasing an additional 623 shares during the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Strategic Education Trading Down 0.5 %

The business's fifty day moving average is $96.33 and its 200 day moving average is $94.75. The company has a market cap of $1.97 billion, a P/E ratio of 15.31, a PEG ratio of 1.22 and a beta of 0.59.

Strategic Education Company Profile

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.