Strategic Education (NASDAQ:STRA) Shares Gap Down After Earnings Miss

Strategic Education Inc. (NASDAQ:STRA)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $83.62, but opened at $74.82. Strategic Education shares last traded at $73.7250, with a volume of 114,166 shares.

The health services provider reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.75 by ($0.33). Strategic Education had a return on equity of 8.75% and a net margin of 9.98%.The business had revenue of $305.93 million for the quarter, compared to analyst estimates of $329.81 million. During the same period in the prior year, the company posted $1.30 earnings per share. The company’s revenue was up .8% compared to the same quarter last year.

Strategic Education Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 9th were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Monday, March 9th. Strategic Education’s dividend payout ratio is 44.28%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Strategic Education in a report on Tuesday. Truist Financial cut shares of Strategic Education from a “buy” rating to a “hold” rating and lowered their target price for the company from $95.00 to $85.00 in a report on Tuesday, March 24th. Zacks Research raised shares of Strategic Education from a “hold” rating to a “strong-buy” rating in a research report on Monday, March 2nd. Wall Street Zen upgraded shares of Strategic Education from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 18th. Finally, Barrington Research reissued an “outperform” rating and issued a $105.00 price target on shares of Strategic Education in a research report on Monday, January 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $92.67.

Insider Buying and Selling at Strategic Education

In other Strategic Education news, Chairman Robert S. Silberman bought 718 shares of the firm’s stock in a transaction dated Friday, March 13th. The stock was acquired at an average price of $80.82 per share, for a total transaction of $58,028.76. Following the completion of the purchase, the chairman owned 319,870 shares of the company’s stock, valued at approximately $25,851,893.40. This represents a 0.22% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Daniel Wayne Jackson sold 13,000 shares of the firm’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $82.37, for a total value of $1,070,810.00. Following the transaction, the chief financial officer directly owned 100,096 shares in the company, valued at approximately $8,244,907.52. This represents a 11.49% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 62,420 shares of company stock worth $4,843,218 in the last quarter. 3.60% of the stock is currently owned by company insiders.

Institutional Trading of Strategic Education

Several institutional investors and hedge funds have recently added to or reduced their stakes in STRA. Blue Trust Inc. acquired a new stake in Strategic Education during the 3rd quarter worth approximately $25,000. Allworth Financial LP increased its holdings in shares of Strategic Education by 88.5% in the third quarter. Allworth Financial LP now owns 294 shares of the health services provider’s stock valued at $25,000 after purchasing an additional 138 shares during the period. Hantz Financial Services Inc. raised its stake in shares of Strategic Education by 154.2% during the fourth quarter. Hantz Financial Services Inc. now owns 333 shares of the health services provider’s stock worth $27,000 after purchasing an additional 202 shares during the last quarter. Osaic Holdings Inc. raised its stake in shares of Strategic Education by 85.2% during the second quarter. Osaic Holdings Inc. now owns 387 shares of the health services provider’s stock worth $33,000 after purchasing an additional 178 shares during the last quarter. Finally, Sankala Group LLC acquired a new stake in shares of Strategic Education during the fourth quarter worth $37,000. 93.27% of the stock is owned by hedge funds and other institutional investors.

Strategic Education Stock Down 12.4%

The company has a fifty day moving average of $80.72 and a two-hundred day moving average of $80.70. The stock has a market capitalization of $1.66 billion, a price-to-earnings ratio of 13.51, a P/E/G ratio of 0.80 and a beta of 0.53.

Strategic Education Company Profile

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.