Strategic Education (NASDAQ:STRA) Trading Up 6.3% Following Earnings Beat

Strategic Education Inc. (NASDAQ:STRA)’s stock price traded up 6.3% on Friday following a better than expected earnings announcement. The stock traded as high as $83.43 and last traded at $83.3420. 267,426 shares changed hands during trading, an increase of 16% from the average session volume of 230,538 shares. The stock had previously closed at $78.41.

The health services provider reported $1.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.47 by $0.27. Strategic Education had a return on equity of 8.18% and a net margin of 9.08%.The company had revenue of $311.46 million during the quarter, compared to analyst estimates of $322.29 million. During the same quarter in the prior year, the company earned $1.27 earnings per share. The company’s revenue for the quarter was up 3.8% on a year-over-year basis.

Strategic Education Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 9th will be paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Monday, March 9th. Strategic Education’s payout ratio is 49.90%.

Strategic Education News Summary

Here are the key news stories impacting Strategic Education this week:

• Positive Sentiment: Q4 earnings beat — STRA reported $1.74 EPS vs. $1.47 consensus, driven by margin improvement and year-over-year EPS growth; this is a primary near-term catalyst for the stock move. Read More.
• Positive Sentiment: Cost savings roadmap — management outlined an additional $70M of AI-driven expense savings through 2027 and plans to expand employer-focused enrollment channels, supporting margin expansion and longer-term profitability. Read More.
• Positive Sentiment: Dividend declared — board approved a $0.60 quarterly dividend (annualized $2.40, ~3.0–3.1% yield) with a March 9 ex?dividend date, which may increase appeal to income-oriented investors.
• Neutral Sentiment: Top-line mixed — revenue came in at $311.46M (+3.8% YoY) but below the ~$322M consensus, leaving growth questions despite the EPS beat. Read More.
• Neutral Sentiment: Further detail available — the full Q4 earnings call transcript and slide deck are published for investors who want management commentary on enrollment trends and margin drivers. Read More.
• Negative Sentiment: Enrollment headwinds — coverage highlights concerns that weakening enrollment could pressure future revenue and limit upside from margin savings if student demand softens. Read More.
• Negative Sentiment: Insider selling — CEO Raymond McDonnell sold 38,840 shares (~$2.93M) on Feb. 24, trimming his stake by ~26.8%, which some investors view as a negative signal. SEC Form 4 is filed. Read More.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on STRA. Barrington Research reaffirmed an “outperform” rating and set a $105.00 price objective on shares of Strategic Education in a research report on Monday, January 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Strategic Education in a research note on Thursday, January 22nd. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Strategic Education currently has a consensus rating of “Moderate Buy” and an average price target of $99.33.

Insider Activity

In other news, CEO Raymond Karl Mcdonnell sold 38,840 shares of the stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $75.35, for a total transaction of $2,926,594.00. Following the transaction, the chief executive officer owned 106,332 shares of the company’s stock, valued at approximately $8,012,116.20. This represents a 26.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Strategic Education

A number of institutional investors have recently modified their holdings of the company. Lightrock Netherlands B.V. raised its position in shares of Strategic Education by 155.7% during the third quarter. Lightrock Netherlands B.V. now owns 234,719 shares of the health services provider’s stock worth $20,188,000 after acquiring an additional 142,915 shares during the last quarter. Bastion Asset Management Inc. bought a new stake in Strategic Education during the 3rd quarter worth about $1,175,000. Y Intercept Hong Kong Ltd boosted its stake in shares of Strategic Education by 158.3% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 25,438 shares of the health services provider’s stock valued at $2,188,000 after purchasing an additional 15,588 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Strategic Education by 56.8% during the second quarter. Arrowstreet Capital Limited Partnership now owns 262,035 shares of the health services provider’s stock worth $22,307,000 after buying an additional 94,955 shares during the last quarter. Finally, Burgundy Asset Management Ltd. lifted its holdings in Strategic Education by 3.3% in the second quarter. Burgundy Asset Management Ltd. now owns 1,524,317 shares of the health services provider’s stock valued at $129,765,000 after buying an additional 48,486 shares during the period. Institutional investors own 93.27% of the company’s stock.

Strategic Education Price Performance

The business’s 50 day simple moving average is $81.03 and its 200-day simple moving average is $80.68. The stock has a market capitalization of $1.95 billion, a P/E ratio of 17.33, a PEG ratio of 0.78 and a beta of 0.55.

About Strategic Education

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.