Capella Education Co. (CPLA) Rating Lowered to Hold at Zacks Investment Research
Capella Education Co. (NASDAQ:CPLA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “Capella Education reported impressive results in the first two quarters of 2016 with revenues, enrollment levels and earnings per share showing significant improvement. Total enrollment growth in the first two quarters of the year was driven by higher enrollment in FlexPath programs, improved early-cohort persistence and higher percentage of returning learners. Moreover, the company’s focus non-degree programs are encouraging and should top line in the long term. Capella expects the Hackbright Academy and DevMountain acquiistions to contribute to revenues in near term. However, revenues were hurt in the past two quarters by an unfavorable degree mix shift and change in accounting for revenue recognition. Moreover, an unfavorable shift in the student mix from PhD to the masters’ degree program is hurting revenue per student.”
A number of other equities analysts have also recently issued reports on CPLA. Credit Suisse Group AG reissued a “buy” rating on shares of Capella Education in a research report on Tuesday. Barrington Research raised their price target on shares of Capella Education from $60.00 to $66.00 and gave the company an “outperform” rating in a research report on Wednesday, July 27th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $59.80.
Shares of Capella Education (NASDAQ:CPLA) remained flat at $59.04 during midday trading on Wednesday. The company had a trading volume of 27,012 shares. Capella Education has a 52-week low of $39.06 and a 52-week high of $63.01. The stock has a market cap of $682.68 million, a P/E ratio of 18.31 and a beta of 1.05. The stock has a 50 day moving average of $59.13 and a 200-day moving average of $55.10.
Capella Education (NASDAQ:CPLA) last released its quarterly earnings data on Tuesday, July 26th. The company reported $0.82 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.87 by $0.05. The company had revenue of $106.70 million for the quarter, compared to the consensus estimate of $105.93 million. Capella Education had a return on equity of 20.80% and a net margin of 9.12%. Capella Education’s revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period last year, the company earned $0.83 EPS. On average, equities analysts expect that Capella Education will post $3.49 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 14th. Shareholders of record on Friday, August 26th will be paid a $0.39 dividend. The ex-dividend date is Wednesday, August 24th. This represents a $1.56 annualized dividend and a yield of 2.64%. Capella Education’s dividend payout ratio (DPR) is 48.30%.
In other Capella Education news, CEO J Kevin Gilligan sold 16,892 shares of the stock in a transaction dated Friday, August 19th. The shares were sold at an average price of $59.23, for a total value of $1,000,513.16. Following the completion of the sale, the chief executive officer now owns 69,705 shares in the company, valued at approximately $4,128,627.15. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Darrell R. Tukua sold 5,000 shares of the stock in a transaction dated Thursday, August 25th. The shares were sold at an average price of $61.23, for a total transaction of $306,150.00. The disclosure for this sale can be found here. 6.50% of the stock is currently owned by company insiders.
A number of large investors have recently bought and sold shares of the stock. BlackRock Institutional Trust Company N.A. raised its stake in Capella Education by 1.5% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 296,247 shares of the company’s stock valued at $15,594,000 after buying an additional 4,513 shares during the period. Legal & General Group Plc raised its stake in Capella Education by 32.8% in the first quarter. Legal & General Group Plc now owns 2,686 shares of the company’s stock valued at $141,000 after buying an additional 664 shares during the period. Glenmede Trust Co. NA raised its stake in Capella Education by 0.5% in the first quarter. Glenmede Trust Co. NA now owns 5,664 shares of the company’s stock valued at $296,000 after buying an additional 26 shares during the period. California Public Employees Retirement System raised its stake in Capella Education by 2.1% in the second quarter. California Public Employees Retirement System now owns 53,500 shares of the company’s stock valued at $2,816,000 after buying an additional 1,100 shares during the period. Finally, HL Financial Services LLC raised its stake in Capella Education by 12.5% in the second quarter. HL Financial Services LLC now owns 28,734 shares of the company’s stock valued at $1,513,000 after buying an additional 3,183 shares during the period. Hedge funds and other institutional investors own 90.37% of the company’s stock.
About Capella Education
Capella Education Company is an online postsecondary education services company. The Company’s academic programs are delivered through its subsidiary, Capella University (the University), which is an online academic institution offering online postsecondary education services primarily to working adults.
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