Zacks Investment Research Upgrades Capella Education (CPLA) to “Buy”
Capella Education (NASDAQ:CPLA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm currently has a $90.00 target price on the stock. Zacks Investment Research‘s target price indicates a potential upside of 12.01% from the company’s previous close.
According to Zacks, “Capella University’s educational programs are specifically designed to meet the educational needs of working adults in targeted professions. Continuous innovation and course updates expand its product portfolio, which in turn boost enrollments and drive long-term growth. Meanwhile, Strayer Education and Capella announced an all-stock merger deal of equal transactions, expected to close in the third quarter of 2018. The merger is expected to ensure student success and positive employment outcomes. However, Capella has been witnessing a negative enrollment trend for its doctoral program. Capella’s shares have also underperformed the industry in the last one year.”
CPLA has been the topic of several other reports. Barrington Research lowered shares of Capella Education from an “outperform” rating to a “market perform” rating in a report on Monday, October 30th. BMO Capital Markets reaffirmed a “buy” rating on shares of Capella Education in a report on Thursday, November 30th. Finally, Piper Jaffray Companies reaffirmed a “hold” rating on shares of Capella Education in a report on Wednesday, November 1st. One analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the stock. Capella Education presently has a consensus rating of “Hold” and a consensus target price of $94.33.
Capella Education (NASDAQ:CPLA) last released its quarterly earnings results on Monday, October 30th. The company reported $0.73 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.68 by $0.05. Capella Education had a net margin of 9.60% and a return on equity of 19.21%. The business had revenue of $107.01 million for the quarter, compared to analyst estimates of $108.10 million. During the same period in the previous year, the company earned $0.81 earnings per share. The business’s revenue for the quarter was up 1.0% on a year-over-year basis. equities research analysts anticipate that Capella Education will post 3.58 earnings per share for the current fiscal year.
Several institutional investors and hedge funds have recently made changes to their positions in CPLA. Capital World Investors purchased a new stake in shares of Capella Education during the second quarter valued at $21,400,000. Bessemer Group Inc. grew its holdings in shares of Capella Education by 750.6% during the third quarter. Bessemer Group Inc. now owns 138,651 shares of the company’s stock valued at $9,727,000 after buying an additional 122,351 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Capella Education by 68.1% during the second quarter. Ameriprise Financial Inc. now owns 249,532 shares of the company’s stock valued at $21,360,000 after buying an additional 101,054 shares during the last quarter. Royce & Associates LP grew its holdings in shares of Capella Education by 4.4% during the third quarter. Royce & Associates LP now owns 878,655 shares of the company’s stock valued at $61,638,000 after buying an additional 37,154 shares during the last quarter. Finally, BlackRock Inc. grew its holdings in shares of Capella Education by 1.8% during the second quarter. BlackRock Inc. now owns 1,412,409 shares of the company’s stock valued at $120,903,000 after buying an additional 24,678 shares during the last quarter. 92.57% of the stock is currently owned by hedge funds and other institutional investors.
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About Capella Education
Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment.
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