On August 20, 2023, leading equities researchers at Bank of America upgraded Strategic Education (NASDAQ: STRA) from a “neutral” rating to a “buy” rating in their latest report. This announcement had a significant impact on the company’s stock, as shares of STRA opened at $72.65 on that Friday.
Strategic Education operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. The company provides education services through both campus-based and online post-secondary education programs that aim to develop job-ready skills. Its flagship institution is Strayer University, which offers undergraduate and graduate degree programs in various fields such as business, criminal justice, education, health services, information technology, and public administration.
Despite experiencing fluctuations over the past year with a low of $59.92 and a high of $98.22, Strategic Education has been steadily gaining ground in the market. Currently with a market cap of $1.78 billion, the company is renowned for its ability to adapt to changing educational needs and advancements in technology.
Analyzing financial performance is crucial when evaluating investment opportunities. On July 27th, Strategic Education released its latest earnings results for the quarter ending June 30th. The company reported earnings per share (EPS) of $0.82, surpassing the consensus estimate by $0.16. Furthermore, Strategic Education achieved a return on equity of 3.24% along with a net margin of 3.40%. In terms of revenue generation during this period, the company recorded $287.70 million compared to analyst estimates of $282.39 million—an increase of 5.2% year-over-year.
Looking ahead to the current fiscal year, research analysts predict that Strategic Education will post earnings per share of 3.16—a promising projection given its recent success and continuous efforts to expand its educational offerings.
In conclusion, the recent upgrade by Bank of America from a “neutral” rating to a “buy” rating for Strategic Education reflects the growing confidence in the company’s ability to deliver value to its shareholders. With a diverse range of education services and a solid financial performance, Strategic Education is well-positioned in the market for future growth and success.
Strategic Education, Inc.
Updated on: 05/12/2023
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
10:00 AM (UTC)
Date:05 December, 2023
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Analysis of Ratings and Evaluations for Strategic Education
As of August 20, 2023, Strategic Education has received various ratings and evaluations from research analysts and financial institutions. These expert opinions play a crucial role in shaping investors’ perspectives on the company’s performance and potential.
VNET Group, a renowned research firm, reissued a “reiterates” rating on shares of Strategic Education. This assessment indicates that VNET Group is affirming its previous recommendation on the company’s stocks. It suggests that Strategic Education maintains its status quo or possibly has made minor improvements since VNET Group’s initial assessment.
On the other hand, TheStreet, a financial news and analysis website, downgraded its rating on Strategic Education from “b-” to “c+.” While the specifics behind this decision are not outlined in the text provided, this change may reflect concerns about the company’s overall performance or anticipated future challenges.
In May 2023, Truist Financial initiated coverage on Strategic Education. They assigned a “hold” rating and set a price target of $85.00 for the stock. A “hold” rating typically suggests that Truist Financial believes there is limited short-term potential for significant growth or decline in share value.
StockNews.com also began covering Strategic Education in May 2023 and assigned a “hold” rating for the company. This aligns with Truist Financial’s evaluation of limited short-term potential for substantial movement in stock price.
An average rating compiled by Bloomberg.com states that Strategic Education currently holds a rating of “Moderate Buy,” with an average target price of $95.50 per share. This information provides investors with an overview of analysts’ assessments and helps guide their decision-making processes regarding buying or selling shares.
Looking at institutional investor behavior, it is evident that hedge funds and other large-scale investors have made recent adjustments to their positions in Strategic Education. For instance, Arizona State Retirement System increased its stake in the company by 1.9% during the first quarter, indicating a relatively minor increase in their investment.
Similarly, Quadrant Capital Group LLC raised its position in the company by 77.8% during the fourth quarter. Castleview Partners LLC also saw a modest increase of 4.9% in their stake in Strategic Education during the second quarter.
PNC Financial Services Group Inc. and Wells Fargo & Company MN also adjusted their positions, increasing their holdings by 16.0% and 3.6%, respectively.
Overall, it is apparent that institutional investors and hedge funds own a significant percentage (99.70%) of Strategic Education’s stock. This highlights the trust placed by institutional investors on the company’s potential for growth and success.
These evaluations and adjustments made by research analysts and financial institutions provide valuable insights to investors interested in Strategic Education. By considering these expert perspectives alongside other relevant information, investors can make informed decisions about whether to buy, hold, or sell shares of Strategic Education in order to optimize their portfolios.
Please note that this article is based solely on the text provided for analysis purposes, and additional research would be needed to ensure accuracy and comprehensiveness.