Strategic Education (NASDAQ:STRA) Shares Gap Down Following Weak Earnings

Strategic Education, Inc. (NASDAQ:STRA)’s stock price gapped down prior to trading on Thursday following a weaker than expected 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 the consensus estimate of $1.37 by ($0.10). Strategic Education had a net margin of 10.44% and a return on equity of 7.61%.

Strategic Education Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 10th will be given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 2.83%. Strategic Education’s dividend payout ratio is presently 45.71%.

Analysts Set New Price Targets

Several research firms have recently weighed in on STRA. Barrington Research reiterated an “outperform” rating and set a $135.00 price target on shares of Strategic Education in a research note on Tuesday, January 21st. StockNews.com upgraded 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 a consensus target price of $126.00.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Wilmington Savings Fund Society FSB bought a new position in Strategic Education in the 3rd quarter worth about $37,000. R Squared Ltd bought a new position in Strategic Education in the 4th quarter worth about $42,000. Smartleaf Asset Management LLC boosted its stake in Strategic Education by 394.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 480 shares of the health services provider’s stock worth $44,000 after purchasing an additional 383 shares during the period. Allspring Global Investments Holdings LLC bought a new position in Strategic Education in the 3rd quarter worth about $55,000. Finally, Sterling Capital Management LLC boosted its stake in Strategic Education by 809.1% in the 4th quarter. Sterling Capital Management LLC now owns 700 shares of the health services provider’s stock worth $65,000 after purchasing an additional 623 shares during the period. Institutional investors own 93.27% of the company’s stock.

Strategic Education Stock Performance

The firm has a 50 day simple moving average of $96.88 and a 200 day simple moving average of $94.93. The firm has a market cap of $2.09 billion, a P/E ratio of 16.17, a P/E/G ratio of 1.22 and a beta of 0.59.

Strategic Education Company Profile

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.