Strategic Education (NASDAQ:STRA) Shares Gap Down on Disappointing Earnings

Strategic Education, Inc. (NASDAQ:STRA) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $97.94, but opened at $88.06. Strategic Education shares last traded at $83.92, with a volume of 6,506 shares traded.

The health services provider reported $1.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.10). The company had revenue of $311.46 million during the quarter, compared to analysts’ expectations of $315.18 million. Strategic Education had a return on equity of 7.61% and a net margin of 10.44%.

Strategic Education Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 10th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.01%. Strategic Education’s payout ratio is 45.71%.

Analysts Set New Price Targets

STRA has been the topic of several recent research reports. StockNews.com upgraded Strategic Education from a “hold” rating to a “buy” rating in a research report on Wednesday. Barrington Research dropped their target price on Strategic Education from $135.00 to $120.00 and set an “outperform” rating on the stock in a research report on Thursday. Five research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, Strategic Education currently has a consensus rating of “Buy” and an average target price of $122.25.

Insiders Place Their Bets

In related news, CFO Daniel Wayne Jackson sold 6,025 shares of the firm’s stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $97.83, for a total transaction of $589,425.75. Following the completion of the sale, the chief financial officer now directly owns 81,756 shares in the company, valued at approximately $7,998,189.48. This trade represents a 6.86 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Raymond Karl Mcdonnell sold 31,855 shares of the stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $97.83, for a total transaction of $3,116,374.65. Following the completion of the sale, the chief executive officer now directly owns 140,281 shares of the company’s stock, valued at approximately $13,723,690.23. This trade represents a 18.51 % decrease in their position. The disclosure for this sale can be found here. 3.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Burgundy Asset Management Ltd. lifted its stake in shares of Strategic Education by 1.7% in the 4th quarter. Burgundy Asset Management Ltd. now owns 1,258,680 shares of the health services provider’s stock valued at $117,586,000 after purchasing an additional 20,456 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Strategic Education by 19.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 48,459 shares of the health services provider’s stock valued at $4,527,000 after buying an additional 7,926 shares during the period. Two Sigma Advisers LP lifted its position in Strategic Education by 90.3% in the fourth quarter. Two Sigma Advisers LP now owns 4,425 shares of the health services provider’s stock valued at $413,000 after buying an additional 2,100 shares during the last quarter. Systematic Financial Management LP boosted its stake in Strategic Education by 31.3% during the fourth quarter. Systematic Financial Management LP now owns 30,820 shares of the health services provider’s stock worth $2,879,000 after buying an additional 7,340 shares during the period. Finally, Royal Bank of Canada increased its position in shares of Strategic Education by 6.2% during the fourth quarter. Royal Bank of Canada now owns 589,053 shares of the health services provider’s stock valued at $55,029,000 after acquiring an additional 34,608 shares during the last quarter. 93.27% of the stock is currently owned by hedge funds and other institutional investors.

Strategic Education Stock Down 18.5 %

The business’s 50-day simple moving average is $96.58 and its two-hundred day simple moving average is $94.83. The firm has a market capitalization of $1.96 billion, a price-to-earnings ratio of 15.20, a PEG ratio of 1.22 and a beta of 0.59.

About Strategic Education

Strategic Education, Inc, through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through U.S. Higher Education, Australia/New Zealand, and Education Technology Services segments. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute.