Strayer Education Inc. (STRA) Rating Lowered to Sell at Zacks Investment Research
Strayer Education Inc. (NASDAQ:STRA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Strayer Education reported third-quarter 2016 adjusted earnings of $0.25 per share, which beat the Zacks Consensus Estimate of $0.21 cents by 19%. Total enrollment has increased year over year, driven by a consistent increase in continuing student enrollment and solid improvement in student retention. Moreover, the recent acquisition of New York Code and Design Academy is encouraging given the high demand for web and applications software development professionals. However, tuition cuts and an unfavorable mix of students toward lower undergraduate tuition resulted in declining revenue per student.”
A number of other analysts have also commented on the company. BMO Capital Markets reissued a “buy” rating and issued a $55.00 target price on shares of Strayer Education in a report on Thursday, July 28th. Credit Suisse Group AG reissued a “hold” rating and issued a $53.00 target price on shares of Strayer Education in a report on Wednesday, August 31st. Two research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $50.75.
Shares of Strayer Education (NASDAQ:STRA) opened at 65.75 on Tuesday. Strayer Education has a one year low of $42.39 and a one year high of $65.99. The stock has a market cap of $698.00 million, a PE ratio of 19.64 and a beta of 0.88. The company’s 50-day moving average price is $50.02 and its 200-day moving average price is $48.35.
Strayer Education (NASDAQ:STRA) last announced its quarterly earnings data on Wednesday, October 26th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.22 by $0.03. The business earned $102.20 million during the quarter, compared to analysts’ expectations of $102.62 million. Strayer Education had a return on equity of 21.76% and a net margin of 8.30%. The firm’s quarterly revenue was up 3.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.32 earnings per share. Equities research analysts anticipate that Strayer Education will post $3.26 earnings per share for the current year.
Several hedge funds have recently modified their holdings of STRA. BlackRock Group LTD raised its stake in shares of Strayer Education by 5.8% in the first quarter. BlackRock Group LTD now owns 15,496 shares of the company’s stock valued at $755,000 after buying an additional 855 shares during the last quarter. BlackRock Fund Advisors raised its stake in shares of Strayer Education by 1.1% in the first quarter. BlackRock Fund Advisors now owns 717,631 shares of the company’s stock valued at $34,985,000 after buying an additional 7,736 shares during the last quarter. HBK Investments L P purchased a new stake in shares of Strayer Education during the first quarter valued at approximately $283,000. BNP Paribas Arbitrage SA raised its stake in shares of Strayer Education by 108.9% in the second quarter. BNP Paribas Arbitrage SA now owns 3,620 shares of the company’s stock valued at $178,000 after buying an additional 1,887 shares during the last quarter. Finally, American Century Companies Inc. raised its stake in shares of Strayer Education by 0.4% in the second quarter. American Century Companies Inc. now owns 87,785 shares of the company’s stock valued at $4,313,000 after buying an additional 354 shares during the last quarter. 91.40% of the stock is owned by institutional investors.
About Strayer Education
Strayer Education, Inc is an education services holding company. The Company provides post-secondary education services. The Company offers a range of academic programs through its subsidiaries, Strayer University, Inc (the University) and New York Code and Design Academy (NYCDA). The University offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration and criminal justice at approximately 80 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online.
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