Strategic Education (NASDAQ:STRA) Hits New 1-Year Low on Disappointing Earnings

Strategic Education, Inc. (NASDAQ:STRA)’s stock price reached a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $79.37 and last traded at $79.80, with a volume of 319728 shares trading hands. The stock had previously closed at $97.94.

The health services provider reported $1.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.37 by ($0.10). The firm 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 Dividend Announcement

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

Analysts Set New Price Targets

STRA has been the subject of a number of research analyst reports. Barrington Research reduced their price target on shares of Strategic Education from $135.00 to $120.00 and set an “outperform” rating for the company in a research note on Thursday. StockNews.com upgraded shares of Strategic Education from a “hold” rating to a “buy” rating in a research note on Wednesday. Five research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, Strategic Education presently has an average rating of “Buy” and an average target price of $122.25.

Insider Activity at Strategic Education

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

Hedge Funds Weigh In On Strategic Education

Several hedge funds have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC purchased a new stake in Strategic Education during the third quarter valued at $55,000. Louisiana State Employees Retirement System raised its stake in Strategic Education by 7.3% during the third quarter. Louisiana State Employees Retirement System now owns 11,800 shares of the health services provider’s stock valued at $1,092,000 after purchasing an additional 800 shares in the last quarter. State of Alaska Department of Revenue raised its stake in Strategic Education by 8.0% during the third quarter. State of Alaska Department of Revenue now owns 13,911 shares of the health services provider’s stock valued at $1,287,000 after purchasing an additional 1,036 shares in the last quarter. New York State Teachers Retirement System raised its stake in Strategic Education by 2.5% during the third quarter. New York State Teachers Retirement System now owns 37,830 shares of the health services provider’s stock valued at $3,501,000 after purchasing an additional 932 shares in the last quarter. Finally, US Bancorp DE raised its stake in Strategic Education by 12.8% during the third quarter. US Bancorp DE now owns 1,938 shares of the health services provider’s stock valued at $179,000 after purchasing an additional 220 shares in the last quarter. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Strategic Education Stock Down 18.5 %

The company has a market cap of $1.96 billion, a PE ratio of 15.20, a P/E/G ratio of 1.22 and a beta of 0.59. The stock’s 50 day moving average is $96.58 and its 200-day moving average is $94.83.

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.