Strategic Education (NASDAQ:STRA) Stock Price Up 6.3% on Better-Than-Expected Earnings

Strategic Education Inc. (NASDAQ:STRA) shot up 6.3% on Friday after the company announced better than expected quarterly earnings. The company traded as high as $83.43 and last traded at $83.3420. 267,426 shares changed hands during trading, an increase of 16% from the average session volume of 230,538 shares. The stock had previously closed at $78.41.

The health services provider reported $1.74 EPS for the quarter, topping analysts’ consensus estimates of $1.47 by $0.27. Strategic Education had a return on equity of 8.18% and a net margin of 9.08%.The business had revenue of $311.46 million during the quarter, compared to analysts’ expectations of $322.29 million. During the same period in the previous year, the firm earned $1.27 earnings per share. The firm’s quarterly revenue was up 3.8% compared to the same quarter last year.

Strategic Education Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 9th will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Monday, March 9th. Strategic Education’s dividend payout ratio (DPR) is currently 49.90%.

Trending Headlines about Strategic Education

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

• Positive Sentiment: Q4 earnings beat — STRA reported $1.74 EPS vs. $1.47 consensus, driven by margin improvement and year-over-year EPS growth; this is a primary near-term catalyst for the stock move. Read More.
• Positive Sentiment: Cost savings roadmap — management outlined an additional $70M of AI-driven expense savings through 2027 and plans to expand employer-focused enrollment channels, supporting margin expansion and longer-term profitability. Read More.
• Positive Sentiment: Dividend declared — board approved a $0.60 quarterly dividend (annualized $2.40, ~3.0–3.1% yield) with a March 9 ex‑dividend date, which may increase appeal to income-oriented investors.
• Neutral Sentiment: Top-line mixed — revenue came in at $311.46M (+3.8% YoY) but below the ~$322M consensus, leaving growth questions despite the EPS beat. Read More.
• Neutral Sentiment: Further detail available — the full Q4 earnings call transcript and slide deck are published for investors who want management commentary on enrollment trends and margin drivers. Read More.
• Negative Sentiment: Enrollment headwinds — coverage highlights concerns that weakening enrollment could pressure future revenue and limit upside from margin savings if student demand softens. Read More.
• Negative Sentiment: Insider selling — CEO Raymond McDonnell sold 38,840 shares (~$2.93M) on Feb. 24, trimming his stake by ~26.8%, which some investors view as a negative signal. SEC Form 4 is filed. Read More.

Analyst Ratings Changes

STRA has been the subject of a number of recent analyst reports. Weiss Ratings restated a “hold (c)” rating on shares of Strategic Education in a research report on Thursday, January 22nd. Barrington Research reissued an “outperform” rating and set a $105.00 target price on shares of Strategic Education in a research note on Monday, January 26th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $99.33.

Insider Transactions at Strategic Education

In other Strategic Education news, CEO Raymond Karl Mcdonnell sold 38,840 shares of the company’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $75.35, for a total transaction of $2,926,594.00. Following the completion of the transaction, the chief executive officer owned 106,332 shares of the company’s stock, valued at $8,012,116.20. This represents a 26.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 3.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in STRA. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Strategic Education by 3.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,195 shares of the health services provider’s stock worth $1,360,000 after purchasing an additional 487 shares during the last quarter. Jane Street Group LLC grew its holdings in Strategic Education by 40.2% during the first quarter. Jane Street Group LLC now owns 43,433 shares of the health services provider’s stock worth $3,647,000 after buying an additional 12,444 shares in the last quarter. Brighton Jones LLC bought a new position in Strategic Education during the 2nd quarter valued at $211,000. Envestnet Asset Management Inc. boosted its holdings in Strategic Education by 6.1% during the 2nd quarter. Envestnet Asset Management Inc. now owns 449,578 shares of the health services provider’s stock worth $38,273,000 after acquiring an additional 26,029 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd raised its holdings in shares of Strategic Education by 61.5% in the second quarter. Y Intercept Hong Kong Ltd now owns 9,850 shares of the health services provider’s stock valued at $839,000 after purchasing an additional 3,751 shares during the last quarter. Institutional investors and hedge funds own 93.27% of the company’s stock.

Strategic Education Stock Up 6.1%

The company has a market capitalization of $1.95 billion, a P/E ratio of 17.33, a price-to-earnings-growth ratio of 0.78 and a beta of 0.55. The business’s 50-day moving average is $81.03 and its two-hundred day moving average is $80.68.

About Strategic Education

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.