Strategic Education (NASDAQ:STRA) Downgraded by Barrington Research to “Hold”

Barrington Research cut shares of Strategic Education (NASDAQ:STRA) from an outperform rating to a hold rating in a report released on Friday morning, MarketBeat reports.

STRA has been the subject of a number of other research reports. BMO Capital Markets cut Strategic Education from an “outperform” rating to a “market perform” rating and decreased their target price for the stock from $95.00 to $66.00 in a report on Friday. Truist Financial raised their price target on shares of Strategic Education from $80.00 to $90.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Weiss Ratings downgraded shares of Strategic Education from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, October 28th. William Blair lowered shares of Strategic Education to a “market perform” rating in a research report on Friday. Finally, Wall Street Zen raised shares of Strategic Education from a “hold” rating to a “buy” rating in a research note on Saturday, August 1st. Six investment analysts have rated the stock with a Hold rating. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $87.00.

Strategic Education Price Performance

NASDAQ:STRA traded down $6.27 during trading hours on Friday, reaching $52.20. 716,097 shares of the company were exchanged, compared to its average volume of 270,420. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of 307.06, a PEG ratio of 0.67 and a beta of 0.51. The stock has a 50 day simple moving average of $78.93 and a 200 day simple moving average of $80.04. Strategic Education has a 52-week low of $51.01 and a 52-week high of $89.73.

Strategic Education (NASDAQ:STRA) last issued its earnings results on Thursday, November 5th. The health services provider reported $1.72 earnings per share for the quarter, missing the consensus estimate of $1.95 by ($0.23). The firm had revenue of $325.07 million during the quarter, compared to analysts’ expectations of $326.55 million. Strategic Education had a return on equity of 8.98% and a net margin of 10.46%. The company’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same period last year, the business posted $1.64 earnings per share. On average, analysts predict that Strategic Education will post 7.23 EPS for the current fiscal year.

Strategic Education Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Shareholders of record on Monday, November 30th will be given a $0.60 dividend. The ex-dividend date of this dividend is Monday, November 30th. This represents a $2.40 annualized dividend and a yield of 4.6%. Strategic Education’s dividend payout ratio (DPR) is 40.00%.

Institutional Trading of Strategic Education

A number of hedge funds have recently made changes to their positions in the company. Axiom Investment Management LLC purchased a new position in shares of Strategic Education in the first quarter valued at $25,000. Heritage Family Offices LLP purchased a new stake in Strategic Education during the 3rd quarter worth $25,000. Rockefeller Capital Management L.P. increased its stake in Strategic Education by 305.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 616 shares of the health services provider’s stock worth $49,000 after buying an additional 464 shares during the period. Allworth Financial LP purchased a new stake in Strategic Education during the 2nd quarter worth $49,000. Finally, Public Employees Retirement System of Ohio acquired a new position in Strategic Education in the 2nd quarter worth $51,000. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Trending Headlines about Strategic Education

Here are the key news stories impacting Strategic Education this week:

• Positive Sentiment: Strategic Education declared a quarterly dividend of $0.60 per share, equivalent to $2.40 annually and a reported yield of 4.5%. The ex-dividend date is November 30, and payment is scheduled for December 7.
• Neutral Sentiment: Third-quarter revenue rose 1.6% year over year to $325.1 million, supported by Education Technology Services and higher U.S. Higher Education revenue per student, but was slightly below analyst expectations. Strategic Education Q3 results
• Negative Sentiment: Adjusted expectations were not met: Q3 EPS of $1.72 fell short of consensus estimates around $1.92–$1.95. Coverage also highlighted a $134 million Torrens writedown, a significant drag on the results and a likely source of investor concern. Strategic Education Q3 earnings and writedown
• Negative Sentiment: Barrington Research lowered its rating on STRA from “outperform” to “market perform,” signaling less optimism about the shares. Barrington Research ratings
• Negative Sentiment: Ademi LLP said it is investigating potential securities-fraud claims involving the company. This is an investigation announcement, not a finding of wrongdoing, but it adds a legal and reputational uncertainty for investors. Ademi LLP investigation announcement

About Strategic Education

Strategic Education, Inc (NASDAQ: STRA) is an education services company that provides postsecondary programs through Strayer University and Capella University. Its institutions serve working adults and other nontraditional students through online and campus-based learning options.

Strayer University offers undergraduate and graduate degree programs, professional certificates and other career-focused educational programs in areas such as business, information technology, health services and criminal justice.