Piper Sandler Lowers 2U (NASDAQ:TWOU) to Neutral

2U (NASDAQ:TWOU) was downgraded by equities research analysts at Piper Sandler from an “overweight” rating to a “neutral” rating in a research report issued to clients and investors on Thursday, Price Targets.com reports. They presently have a $23.00 target price on the software maker’s stock, down from their previous target price of $37.00. Piper Sandler’s target price would indicate a potential upside of 39.99% from the company’s previous close.

Other analysts have also recently issued research reports about the company. Robert W. Baird reduced their price target on 2U from $66.00 to $49.00 and set an “outperform” rating for the company in a research report on Wednesday, November 10th. They noted that the move was a valuation call. Zacks Investment Research upgraded 2U from a “sell” rating to a “hold” rating in a research report on Thursday, November 18th. Barrington Research reduced their price target on 2U from $55.00 to $45.00 and set an “outperform” rating for the company in a research report on Wednesday, November 10th. BMO Capital Markets reduced their price target on 2U from $46.00 to $40.00 and set an “outperform” rating for the company in a research report on Thursday, November 11th. Finally, Morgan Stanley cut their target price on 2U from $37.00 to $28.00 and set an “equal weight” rating for the company in a research report on Thursday, December 9th. Four investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average target price of $41.67.

TWOU stock opened at $16.43 on Thursday. 2U has a fifty-two week low of $15.87 and a fifty-two week high of $59.74. The business’s 50-day moving average is $21.93 and its two-hundred day moving average is $32.28. The company has a debt-to-equity ratio of 0.84, a quick ratio of 3.71 and a current ratio of 3.71. The company has a market cap of $1.24 billion, a price-to-earnings ratio of -7.37 and a beta of 0.88.

2U (NASDAQ:TWOU) last posted its earnings results on Tuesday, November 9th. The software maker reported ($0.23) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.58) by $0.35. The company had revenue of $232.38 million for the quarter, compared to the consensus estimate of $232.14 million. 2U had a negative return on equity of 14.21% and a negative net margin of 18.00%. During the same quarter in the prior year, the company earned ($0.56) earnings per share. Equities analysts predict that 2U will post -2.08 earnings per share for the current year.

In other 2U news, Director Alexis Maybank sold 4,300 shares of the firm’s stock in a transaction that occurred on Wednesday, December 1st. The stock was sold at an average price of $24.01, for a total transaction of $103,243.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 4.50% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Macquarie Group Ltd. grew its holdings in 2U by 5,841.6% during the 2nd quarter. Macquarie Group Ltd. now owns 387,038 shares of the software maker’s stock valued at $16,128,000 after buying an additional 380,524 shares in the last quarter. Russell Investments Group Ltd. purchased a new position in 2U during the 2nd quarter valued at approximately $1,035,000. Prudential Financial Inc. purchased a new position in 2U during the 2nd quarter valued at approximately $335,000. Juncture Wealth Strategies LLC grew its holdings in 2U by 6.9% during the 3rd quarter. Juncture Wealth Strategies LLC now owns 18,964 shares of the software maker’s stock valued at $637,000 after buying an additional 1,227 shares in the last quarter. Finally, Heritage Wealth Management LLC grew its holdings in 2U by 19.9% during the 2nd quarter. Heritage Wealth Management LLC now owns 4,411 shares of the software maker’s stock valued at $184,000 after buying an additional 733 shares in the last quarter.

About 2U

2U, Inc engages in the provision of education technology for nonprofit colleges and universities. It operates through the following segments: Degree Program and Alternative Credential. The Degree Program segment provides technology and services to nonprofit colleges and universities to enable the online delivery of degree programs.

Recommended Story: Special Purpose Acquisition Company (SPAC)

Analyst Recommendations for 2U (NASDAQ:TWOU)

Receive News & Ratings for 2U Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for 2U and related companies with MarketBeat.com's FREE daily email newsletter.