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

Strategic Education, Inc. (NASDAQ:STRA)’s share 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 changing hands.

The health services provider reported $1.27 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%. The firm had revenue of $311.46 million for the quarter, compared to the consensus estimate of $315.18 million.

Strategic Education Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. StockNews.com raised Strategic Education from a “hold” rating to a “buy” rating in a research report on Wednesday. Barrington Research lowered their target price 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. Five equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, Strategic Education has an average rating of “Buy” and a consensus price target of $122.25.

Insider Buying and Selling at Strategic Education

In other news, CFO Daniel Wayne Jackson sold 6,025 shares of the firm’s stock in a transaction 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 transaction, the chief financial officer now 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 sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Raymond Karl Mcdonnell sold 31,855 shares of the company’s stock in a transaction dated Tuesday, February 25th. The stock was 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 ownership of the stock. The disclosure for this sale can be found here. 3.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Strategic Education

Several institutional investors have recently bought and sold shares of the business. Thrivent Financial for Lutherans boosted its position in Strategic Education by 19.7% during the 3rd quarter. Thrivent Financial for Lutherans now owns 43,755 shares of the health services provider’s stock valued at $4,050,000 after acquiring an additional 7,203 shares in the last quarter. JPMorgan Chase & Co. lifted its stake in shares of Strategic Education by 76.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 399,144 shares of the health services provider’s stock worth $36,941,000 after purchasing an additional 173,225 shares during the last quarter. Principal Financial Group Inc. boosted its position in Strategic Education by 11.5% during the third quarter. Principal Financial Group Inc. now owns 120,628 shares of the health services provider’s stock valued at $11,164,000 after purchasing an additional 12,437 shares in the last quarter. Intech Investment Management LLC purchased a new position in Strategic Education in the third quarter valued at about $702,000. Finally, Charles Schwab Investment Management Inc. raised its holdings in Strategic Education by 7.0% in the third quarter. Charles Schwab Investment Management Inc. now owns 313,727 shares of the health services provider’s stock worth $29,035,000 after purchasing an additional 20,389 shares in the last quarter. 93.27% of the stock is owned by hedge funds and other institutional investors.

Strategic Education Price Performance

The firm has a market capitalization of $1.96 billion, a P/E ratio of 15.20, a P/E/G ratio of 1.22 and a beta of 0.59. The stock’s fifty day simple moving average is $96.58 and its 200 day simple moving average is $94.83.

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.