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RESTON, Va. - Stride, Inc. (NYSE:LRN) announced Monday a new stock repurchase program authorizing the buyback of up to $500 million of its common stock through October 31, 2026. The education technology company, currently trading at $68.04 with a market cap of $2.94 billion, appears significantly undervalued according to InvestingPro analysis.
The education technology company’s board approved the program, which allows for repurchases using various methods including open market purchases and privately negotiated transactions, in accordance with Securities and Exchange Commission rules. The move comes as Stride holds more cash than debt on its balance sheet, with InvestingPro data showing liquid assets comfortably exceeding short-term obligations with a current ratio of 6.77.
"Demand for our products and services remains strong, and industry demand and trends around online education continue to grow," said James Rhyu, Chief Executive Officer and Board Chair, according to the company’s press release.
The repurchase program does not obligate Stride to acquire any specific amount of common stock and may be suspended or discontinued at the company’s discretion. The timing, price, and size of purchases will depend on prevailing stock prices, market conditions, and other considerations.
Stride provides education solutions across primary, secondary, and postsecondary settings, offering K-12 education, career learning, and professional skills training. The company serves learners in all 50 states and over 100 countries.
The announcement comes as the company maintains a focus on its long-term growth strategy. According to the statement, Stride’s management believes the company’s strong cash flow and balance sheet position will support both the share repurchase program and continued investment in growth opportunities. Financial data supports this outlook, with Stride posting 17.25% revenue growth in the last twelve months and generating a free cash flow yield of 13%. The stock currently trades at a P/E ratio of 9.18, which InvestingPro identifies as low relative to near-term earnings growth. For comprehensive analysis on LRN and 1,400+ other stocks, explore InvestingPro’s detailed research reports.
In other recent news, Stride Inc. reported financial results for the first quarter of fiscal 2026, surpassing earnings expectations. The company achieved an earnings per share (EPS) of $1.52, significantly higher than the projected $1.08, resulting in a 40.74% surprise. Revenue also exceeded forecasts, reaching $620.9 million compared to the anticipated $615.96 million. Despite these strong financial results, Stride issued full-year 2026 guidance that was notably below analyst consensus estimates. This development led BMO Capital to downgrade Stride’s stock from Outperform to Market Perform, adjusting the price target from $164.00 to $108.00. The downgrade was attributed to ongoing platform issues that have raised investor concerns. These recent developments have prompted caution among investors, reflecting the challenges Stride faces moving forward.
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