Key Points
- Director Michael Thawley bought 665 shares at an average price of $72.71 on April 24, increasing his holding to 12,154 shares (a 5.79% bump) valued at about $883,717.
- Q1 results missed expectations: Strategic Education reported EPS of $1.42 versus $1.51 expected and revenue of $305.9M versus $329.8M, which pressured the stock and led to some analyst downgrades.
- Dividend and valuation: The company announced a $0.60 quarterly dividend (annualized $2.40, ~3.3% yield) and trades at a P/E of ~12.99 with a consensus "Moderate Buy" and average target of $89.33.
Strategic Education Inc. (NASDAQ:STRA - Get Free Report) Director Michael Thawley bought 665 shares of the business's stock in a transaction on Friday, April 24th. The stock was bought at an average cost of $72.71 per share, for a total transaction of $48,352.15. Following the purchase, the director directly owned 12,154 shares of the company's stock, valued at approximately $883,717.34. This trade represents a 5.79% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
Strategic Education Trading Up 1.9%
Shares of STRA opened at $73.53 on Friday. The stock has a market cap of $1.66 billion, a P/E ratio of 12.99, a price-to-earnings-growth ratio of 0.69 and a beta of 0.53. Strategic Education Inc. has a 1 year low of $69.70 and a 1 year high of $93.45. The stock's 50-day moving average price is $80.65 and its two-hundred day moving average price is $80.57.
Strategic Education (NASDAQ:STRA - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The health services provider reported $1.42 EPS for the quarter, missing analysts' consensus estimates of $1.51 by ($0.09). The company had revenue of $305.93 million during the quarter, compared to the consensus estimate of $329.81 million. Strategic Education had a net margin of 10.21% and a return on equity of 8.78%. The business's revenue was up .8% compared to the same quarter last year. During the same period last year, the company earned $1.30 earnings per share. As a group, equities analysts forecast that Strategic Education Inc. will post 6.97 EPS for the current year.
Strategic Education Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 22nd will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Friday, May 22nd. Strategic Education's dividend payout ratio is presently 44.28%.
Analysts Set New Price Targets
STRA has been the topic of a number of recent analyst reports. Barrington Research reduced their price target on shares of Strategic Education from $105.00 to $95.00 and set an "outperform" rating on the stock in a research report on Thursday. Truist Financial downgraded Strategic Education from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $95.00 to $85.00 in a research note on Tuesday, March 24th. Weiss Ratings reiterated a "hold (c)" rating on shares of Strategic Education in a report on Tuesday. Zacks Research raised Strategic Education from a "hold" rating to a "strong-buy" rating in a research note on Monday, March 2nd. Finally, Wall Street Zen upgraded Strategic Education from a "buy" rating to a "strong-buy" rating in a report on Saturday, April 18th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $89.33.
Get Our Latest Stock Report on Strategic Education
Key Headlines Impacting Strategic Education
Here are the key news stories impacting Strategic Education this week:
- Positive Sentiment: Company announced a quarterly dividend of $0.60 per share (annualized yield ~3.3%), which supports income-oriented investors and can provide downside support to the stock.
- Positive Sentiment: Management said Q1 may be the low point for 2026 and is targeting roughly 200 basis points of margin expansion by accelerating AI-driven productivity improvements — a clear strategic cost-efficiency lever that could boost future margins and earnings. Seeking Alpha Margin Expansion
- Positive Sentiment: Recent analyst/quant coverage frames STRA as an attractive value name (Zacks articles and a “Moderate Buy” broker consensus), highlighting low P/E and PEG metrics versus growth prospects — which can attract value-oriented buyers. Zacks: Should Value Investors Buy? Zacks: Strong Value Stock
- Neutral Sentiment: Company reported Q1 results and issued a slide deck/press release summarizing performance (revenue modestly up YoY; detailed slides/transcript available for investors evaluating the quarter). BusinessWire Q1 Release
- Neutral Sentiment: Earnings call transcript and presentation were posted — useful for judging management tone, guidance detail, and execution against the AI productivity plan. Earnings Call Transcript
- Negative Sentiment: Reported Q1 EPS of $1.42 missed consensus ($1.51) and revenue of $305.9M fell short of estimates (~$329.8M). The shortfall in topline and the EPS miss are primary near-term negative catalysts pressuring the stock. Zacks: Q1 Miss
- Negative Sentiment: Market reaction: several outlets noted shares falling after the miss and the revenue shortfall, signaling investor concern about near-term growth and execution. Elevated trading volume versus average suggests stronger investor selling/positioning around the print. MSN: Shares Falling
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of Montreal Can boosted its holdings in shares of Strategic Education by 62,355.4% in the fourth quarter. Bank of Montreal Can now owns 1,467,702 shares of the health services provider's stock valued at $117,710,000 after buying an additional 1,465,352 shares during the period. State Street Corp raised its holdings in shares of Strategic Education by 0.8% during the fourth quarter. State Street Corp now owns 881,089 shares of the health services provider's stock worth $70,663,000 after acquiring an additional 6,737 shares during the period. Geode Capital Management LLC raised its holdings in shares of Strategic Education by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 609,040 shares of the health services provider's stock worth $48,853,000 after acquiring an additional 1,579 shares during the period. Charles Schwab Investment Management Inc. lifted its position in Strategic Education by 3.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 351,969 shares of the health services provider's stock valued at $28,228,000 after acquiring an additional 12,244 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in Strategic Education by 27.0% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 332,767 shares of the health services provider's stock valued at $28,621,000 after acquiring an additional 70,732 shares in the last quarter. Institutional investors and hedge funds own 93.27% of the company's stock.
Strategic Education Company Profile
(
Get Free Report)
Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.
Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.
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