Strategic Education (NASDAQ:STRA) Upgraded to Strong-Buy at Wall Street Zen

Strategic Education (NASDAQ:STRA) was upgraded by analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a report released on Saturday.

Other research analysts have also issued reports about the stock. Barrington Research reiterated an “outperform” rating and issued a $105.00 target price on shares of Strategic Education in a research report on Monday, January 26th. Weiss Ratings reiterated a “hold (c)” rating on shares of Strategic Education in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Strategic Education presently has a consensus rating of “Moderate Buy” and an average target price of $99.33.

Strategic Education Trading Up 4.9%

Shares of NASDAQ STRA opened at $82.28 on Friday. The business has a 50-day moving average of $81.07 and a 200-day moving average of $80.73. The firm has a market capitalization of $1.93 billion, a price-to-earnings ratio of 15.18, a PEG ratio of 0.81 and a beta of 0.55. Strategic Education has a 12 month low of $72.17 and a 12 month high of $93.45.

Strategic Education (NASDAQ:STRA) last announced its earnings results on Thursday, February 26th. The health services provider reported $1.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.47 by $0.27. The business had revenue of $311.46 million during the quarter, compared to analyst estimates of $322.29 million. Strategic Education had a net margin of 9.98% and a return on equity of 8.73%. Strategic Education’s revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the previous year, the business posted $1.27 earnings per share. On average, analysts predict that Strategic Education will post 4.79 earnings per share for the current year.

Insider Buying and Selling at Strategic Education

In other Strategic Education 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 value 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Strategic Education

Institutional investors and hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Strategic Education by 3.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,195 shares of the health services provider’s stock worth $1,360,000 after purchasing an additional 487 shares during the last quarter. Jane Street Group LLC increased its position in shares of Strategic Education by 40.2% during the 1st quarter. Jane Street Group LLC now owns 43,433 shares of the health services provider’s stock valued at $3,647,000 after purchasing an additional 12,444 shares during the last quarter. Brighton Jones LLC purchased a new stake in Strategic Education during the 2nd quarter valued at $211,000. Envestnet Asset Management Inc. lifted its position in Strategic Education by 6.1% in the second quarter. Envestnet Asset Management Inc. now owns 449,578 shares of the health services provider’s stock worth $38,273,000 after buying an additional 26,029 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd boosted its stake in Strategic Education by 61.5% during the second quarter. Y Intercept Hong Kong Ltd now owns 9,850 shares of the health services provider’s stock worth $839,000 after buying an additional 3,751 shares during the period. 93.27% of the stock is owned by institutional investors.

Key Stories Impacting Strategic Education

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

• Positive Sentiment: Q4 EPS beat — STRA reported $1.74 EPS vs. a $1.47 consensus, driving upside to estimates and supporting the stock. Read More.
• Positive Sentiment: Management announced an additional $70M of AI-driven expense savings through 2027 and plans to expand employer-focused enrollment channels — a structural margin lever that supports longer‑term profitability. Read More.
• Positive Sentiment: Dividend declared — a $0.60 quarterly payout (ex-dividend March 9, paid March 16) yields ~3.0% and increases income appeal for yield-seeking investors.
• Neutral Sentiment: Top-line mixed — revenue of $311.46M was up 3.8% YoY but came in below analyst expectations (~$322.3M), leaving the growth outlook ambiguous despite the EPS beat. Read More.
• Neutral Sentiment: Earnings materials available — full Q4 2025 call transcript and slide deck give detail on enrollment trends, margin drivers and the rollout of cost savings for investors who want management color. Read More.
• Negative Sentiment: Enrollment headwinds flagged — coverage highlights risk that weaker enrollments could constrain future revenue growth and limit the benefit of margin initiatives. Read More.
• Negative Sentiment: Insider selling — CEO Raymond McDonnell sold 38,840 shares (~$2.93M) late February, cutting his stake by ~26.8%, which some investors may view as a negative signal. Read More.

Strategic Education Company Profile

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.