2U (NASDAQ:TWOU) Downgraded by Zacks Investment Research to Hold

2U (NASDAQ:TWOUGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Zacks.com reports.

According to Zacks, “2U, Inc. is an education technology company. It is a provider of cloud-based software-as-a-service (SaaS) solutions that enables nonprofit colleges and universities to deliver their education to students anywhere. The Company offers graduate and undergraduate degree programs in social work, science, public administration, healthcare, laws, education, and business administration. It also offers a suite of technology-enabled services including content development, student acquisition, and state authorization services, as well as application advising, student and faculty support, and in-program student field placements. 2U, Inc. is based in Landover, Maryland. “

Several other equities research analysts have also commented on TWOU. Needham & Company LLC decreased their price objective on shares of 2U from $28.00 to $19.00 in a research note on Friday, May 6th. Barrington Research decreased their price objective on shares of 2U from $25.00 to $16.00 in a research note on Friday, May 6th. William Blair lowered shares of 2U from an “outperform” rating to a “market perform” rating in a research note on Thursday, February 10th. StockNews.com started coverage on shares of 2U in a research note on Thursday, March 31st. They issued a “sell” rating for the company. Finally, Morgan Stanley decreased their price objective on shares of 2U from $22.00 to $17.00 and set an “equal weight” rating for the company in a research note on Thursday, April 14th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat, 2U currently has an average rating of “Hold” and an average price target of $23.61.

TWOU opened at $11.34 on Friday. The company has a debt-to-equity ratio of 1.42, a current ratio of 1.09 and a quick ratio of 1.09. 2U has a fifty-two week low of $8.12 and a fifty-two week high of $46.52. The firm has a market capitalization of $874.00 million, a PE ratio of -3.12 and a beta of 1.22. The company’s 50-day moving average is $11.42 and its 200 day moving average is $15.73.

2U (NASDAQ:TWOUGet Rating) last posted its earnings results on Thursday, May 5th. The software maker reported ($0.24) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.26) by $0.02. 2U had a negative net margin of 28.45% and a negative return on equity of 18.88%. The company had revenue of $253.33 million for the quarter, compared to analyst estimates of $252.97 million. During the same quarter in the prior year, the business posted ($0.46) EPS. The firm’s revenue was up 9.0% compared to the same quarter last year. As a group, analysts expect that 2U will post -1.67 EPS for the current year.

Several institutional investors and hedge funds have recently modified their holdings of TWOU. Artisan Partners Limited Partnership purchased a new position in shares of 2U in the third quarter valued at $23,361,000. Nordea Investment Management AB grew its position in shares of 2U by 152.3% in the first quarter. Nordea Investment Management AB now owns 1,120,764 shares of the software maker’s stock valued at $14,760,000 after purchasing an additional 676,511 shares in the last quarter. Norges Bank purchased a new position in shares of 2U in the fourth quarter valued at $13,369,000. ARK Investment Management LLC grew its position in shares of 2U by 6.4% in the fourth quarter. ARK Investment Management LLC now owns 8,949,466 shares of the software maker’s stock valued at $179,616,000 after purchasing an additional 537,194 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its position in shares of 2U by 55.1% in the first quarter. Bank of New York Mellon Corp now owns 1,461,914 shares of the software maker’s stock valued at $19,415,000 after purchasing an additional 519,324 shares in the last quarter.

About 2U (Get Rating)

2U, Inc operates as an education technology company in the United States and internationally. The company operates through two segments, Degree Program and Alternative Credential. The Degree Program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs.

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