According to Zacks, “Despite affordability initiatives like lower tuition rates and introduction of graduation funds, Strayer Education reported volatile starts, soft revenues and weak margins through 2015 and the first half of 2016. Tuition cuts and an unfavorable mix of students toward lower undergraduate tuition resulted in declining revenue per student in the past few quarters. This trend is expected to continue in the near term, which may hurt revenues. However, total enrollment has increased year over year for the last five quarters, driven by a consistent increase in continuing student enrollment and solid improvement in student retention. Moreover, the recent acquisition of New York Code and Design Academy is encouraging given the high demand for web and applications software development professionals. This should support enrollments in the near term.”
A number of other research analysts also recently weighed in on STRA. Credit Suisse Group AG reissued a hold rating on shares of Strayer Education in a report on Wednesday, June 8th. BMO Capital Markets reissued a buy rating and issued a $55.00 target price on shares of Strayer Education in a report on Thursday, July 28th. One research analyst has rated the stock with a sell rating, three have given a hold rating and one has assigned a buy rating to the stock. The company currently has an average rating of Hold and a consensus target price of $50.75.
Shares of Strayer Education (NASDAQ:STRA) opened at 46.68 on Tuesday. Strayer Education has a 52-week low of $42.39 and a 52-week high of $63.85. The company has a market cap of $495.55 million, a P/E ratio of 13.60 and a beta of 1.06. The company has a 50-day moving average price of $47.90 and a 200-day moving average price of $47.76.
Strayer Education (NASDAQ:STRA) last posted its earnings results on Wednesday, July 27th. The company reported $0.72 earnings per share for the quarter, missing analysts’ consensus estimates of $1.04 by $0.32. Strayer Education had a net margin of 8.55% and a return on equity of 23.97%. The firm earned $108.50 million during the quarter, compared to the consensus estimate of $109.21 million. During the same period in the prior year, the company posted $1.11 EPS. The firm’s revenue was down 1.2% compared to the same quarter last year. On average, equities analysts predict that Strayer Education will post $3.20 EPS for the current year.
Several hedge funds and other institutional investors have recently bought and sold shares of STRA. Wedge Capital Management L L P NC increased its position in Strayer Education by 66.0% in the second quarter. Wedge Capital Management L L P NC now owns 9,100 shares of the company’s stock valued at $371,000 after buying an additional 3,619 shares during the period. American Century Companies Inc. increased its position in Strayer Education by 0.4% in the second quarter. American Century Companies Inc. now owns 87,785 shares of the company’s stock valued at $4,313,000 after buying an additional 354 shares during the period. BNP Paribas Arbitrage SA increased its position in Strayer Education by 108.9% in the second quarter. BNP Paribas Arbitrage SA now owns 3,620 shares of the company’s stock valued at $178,000 after buying an additional 1,887 shares during the period. Arizona State Retirement System increased its position in Strayer Education by 3.7% in the first quarter. Arizona State Retirement System now owns 5,619 shares of the company’s stock valued at $274,000 after buying an additional 200 shares during the period. Finally, Envestnet Asset Management Inc. increased its position in Strayer Education by 94.5% in the first quarter. Envestnet Asset Management Inc. now owns 2,324 shares of the company’s stock valued at $113,000 after buying an additional 1,129 shares during the period. 92.40% of the stock is currently owned by hedge funds and other institutional investors.
Strayer Education Company Profile
Strayer Education, Inc is an education services holding company. The Company provides post-secondary education services. The Company offers a range of academic programs through its subsidiaries, Strayer University, Inc (the University) and New York Code and Design Academy (NYCDA). The University offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration and criminal justice at approximately 80 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online.
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