Strategic Education (NASDAQ:STRA) Hits New 52-Week Low on Disappointing Earnings

Shares of Strategic Education, Inc. (NASDAQ:STRA) reached a new 52-week low during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $79.37 and last traded at $79.80, with a volume of 319728 shares trading hands. The stock had previously closed at $97.94.

The health services provider reported $1.27 earnings per share for the quarter, missing analysts’ consensus estimates of $1.37 by ($0.10). Strategic Education had a return on equity of 7.61% and a net margin of 10.44%. The business had revenue of $311.46 million during the quarter, compared to analysts’ expectations of $315.18 million.

Strategic Education Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 10th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 2.98%. The ex-dividend date of this dividend is Monday, March 10th. Strategic Education’s dividend payout ratio (DPR) is presently 51.39%.

Analyst Ratings Changes

A number of research firms recently weighed in on STRA. StockNews.com raised shares of Strategic Education from a “hold” rating to a “buy” rating in a research note on Wednesday. Barrington Research reduced their target price on shares of Strategic Education from $135.00 to $120.00 and set an “outperform” rating for the company in a report on Thursday. Five equities research analysts have rated the stock with a buy rating, According to data from MarketBeat.com, Strategic Education presently has a consensus rating of “Buy” and an average price target of $122.25.

Insiders Place Their Bets

In other news, CEO Raymond Karl Mcdonnell sold 31,855 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $97.83, for a total transaction of $3,116,374.65. Following the transaction, the chief executive officer now owns 140,281 shares in the company, valued at $13,723,690.23. This represents a 18.51 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Daniel Wayne Jackson sold 6,025 shares of the company’s stock in a transaction dated Tuesday, February 25th. The shares were 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 position. 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 hedge funds have recently modified their holdings of the stock. Burgundy Asset Management Ltd. increased its holdings in Strategic Education by 1.7% in the 4th quarter. Burgundy Asset Management Ltd. now owns 1,258,680 shares of the health services provider’s stock worth $117,586,000 after buying an additional 20,456 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Strategic Education by 19.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 48,459 shares of the health services provider’s stock worth $4,527,000 after buying an additional 7,926 shares during the period. Two Sigma Advisers LP increased its holdings in Strategic Education by 90.3% in the 4th quarter. Two Sigma Advisers LP now owns 4,425 shares of the health services provider’s stock worth $413,000 after buying an additional 2,100 shares during the period. Systematic Financial Management LP increased its holdings in Strategic Education by 31.3% in the 4th quarter. Systematic Financial Management LP now owns 30,820 shares of the health services provider’s stock worth $2,879,000 after buying an additional 7,340 shares during the period. Finally, Royal Bank of Canada increased its holdings in Strategic Education by 6.2% in the 4th quarter. Royal Bank of Canada now owns 589,053 shares of the health services provider’s stock worth $55,029,000 after buying an additional 34,608 shares during the period. Institutional investors and hedge funds own 93.27% of the company’s stock.

Strategic Education Stock Performance

The company’s fifty day moving average is $96.33 and its two-hundred day moving average is $94.74. The company has a market cap of $1.98 billion, a price-to-earnings ratio of 15.34, a P/E/G ratio of 1.22 and a beta of 0.59.

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.