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 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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. Shareholders of record on Monday, March 10th will be paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 2.83%. Strategic Education’s payout ratio is 45.71%.

Analysts Set New Price Targets

STRA has been the topic of several analyst reports. StockNews.com upgraded Strategic Education from a “hold” rating to a “buy” rating in a report on Wednesday. Barrington Research reiterated an “outperform” rating and issued a $135.00 target price on shares of Strategic Education in a report on Tuesday, January 21st. Five equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $126.00.

Hedge Funds Weigh In On Strategic Education

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

Strategic Education Trading Down 13.3 %

The firm has a market capitalization of $2.09 billion, a PE ratio of 16.17, a price-to-earnings-growth ratio of 1.22 and a beta of 0.59. The business has a 50-day moving average of $96.88 and a 200 day moving average of $94.93.

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.