Strategic Education Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

4 analysts have expressed a variety of opinions on Strategic Education (NASDAQ:STRA) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	0	4	0	0	0
Last 30D	0	1	0	0	0
1M Ago	0	0	0	0	0
2M Ago	0	2	0	0	0
3M Ago	0	1	0	0	0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $118.0, with a high estimate of $135.00 and a low estimate of $97.00. Highlighting a 6.35% decrease, the current average has fallen from the previous average price target of $126.00.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Strategic Education's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Alexander Paris |Barrington Research |Maintains |Outperform | $120.00|$120.00 | |Jeffrey Silber |BMO Capital |Lowers |Outperform | $97.00|$114.00 | |Alexander Paris |Barrington Research |Lowers |Outperform | $120.00|$135.00 | |Alexander Paris |Barrington Research |Maintains |Outperform | $135.00|$135.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Strategic Education. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Strategic Education compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Strategic Education's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Strategic Education's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Get to Know Strategic Education Better

Strategic Education Inc. is an education services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets. The company operates through wholly-owned subsidiaries Strayer University and Capella University, both accredited post-secondary institutions of higher education located in the United States, as well as Torrens University, an accredited post-secondary institution of higher education located in Australia. It provide employees with access to affordable and industry relevant training, certificate, and degree programs. The reportable segments of the company are U.S. Higher Education, Australia/New Zealand and Education Technology Services.

Understanding the Numbers: Strategic Education's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Strategic Education's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.89% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Strategic Education's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 8.13%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Strategic Education's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.5%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Strategic Education's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.2%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.08.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.