Strategic Education (NASDAQ:STRA) Shares Gap Down Following Weak Earnings

Strategic Education, Inc. (NASDAQ:STRA - Get Free Report) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $97.94, but opened at $88.06. Strategic Education shares last traded at $83.92, with a volume of 6,506 shares changing hands.

The health services provider reported $1.27 EPS for the quarter, missing the consensus estimate 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 analysts' expectations of $315.18 million.

Strategic Education Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 10th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 2.96%. The ex-dividend date is Monday, March 10th. Strategic Education's payout ratio is 51.39%.

Analyst Upgrades and Downgrades

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

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Insiders Place Their Bets

In related news, CEO Raymond Karl Mcdonnell sold 31,855 shares of the company's stock in a transaction dated 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 sale, the chief executive officer now directly owns 140,281 shares of the company's stock, valued at $13,723,690.23. This represents a 18.51 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Daniel Wayne Jackson sold 6,025 shares of the firm's stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $97.83, for a total transaction of $589,425.75. Following the transaction, the chief financial officer now directly owns 81,756 shares in the company, valued at $7,998,189.48. This trade represents a 6.86 % decrease in their position. The disclosure for this sale can be found here. 3.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Strategic Education

A number of large investors have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC bought a new position in shares of Strategic Education during the 3rd quarter worth approximately $55,000. Louisiana State Employees Retirement System lifted its holdings in shares of Strategic Education by 7.3% during the 3rd quarter. Louisiana State Employees Retirement System now owns 11,800 shares of the health services provider's stock valued at $1,092,000 after purchasing an additional 800 shares during the last quarter. State of Alaska Department of Revenue boosted its position in shares of Strategic Education by 8.0% in the 3rd quarter. State of Alaska Department of Revenue now owns 13,911 shares of the health services provider's stock worth $1,287,000 after purchasing an additional 1,036 shares in the last quarter. New York State Teachers Retirement System grew its stake in Strategic Education by 2.5% during the 3rd quarter. New York State Teachers Retirement System now owns 37,830 shares of the health services provider's stock worth $3,501,000 after buying an additional 932 shares during the last quarter. Finally, US Bancorp DE raised its stake in Strategic Education by 12.8% in the third quarter. US Bancorp DE now owns 1,938 shares of the health services provider's stock valued at $179,000 after buying an additional 220 shares during the last quarter. Institutional investors own 93.27% of the company's stock.

Strategic Education Price Performance

The firm has a market cap of $2.00 billion, a price-to-earnings ratio of 15.47, a P/E/G ratio of 1.22 and a beta of 0.59. The firm has a fifty day simple moving average of $96.33 and a two-hundred day simple moving average of $94.75.

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.