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William Slocum, a director at Strategic Education, Inc. (NASDAQ:STRA), recently acquired a total of 2,250 shares of the company’s common stock. The purchases occurred over two days, with 2,000 shares bought on March 4 at a weighted average price of $81.46 and an additional 250 shares acquired on March 5 at $82.25 per share. The timing appears strategic, as InvestingPro data shows the stock trading near its 52-week low of $78.43, with technical indicators suggesting oversold conditions. These transactions amounted to a total value of approximately $183,482. Following these acquisitions, Slocum’s direct ownership in the company increased to 4,881 shares. Strategic Education, with a market capitalization of $2 billion, maintains strong financial health with more cash than debt and has consistently paid dividends for 9 consecutive years. For deeper insights into STRA’s valuation and 8 additional key ProTips, visit InvestingPro.
In other recent news, Strategic Education reported fourth-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $1.27, falling short of the projected $1.43. Revenue for the quarter was $311.5 million, slightly below the anticipated $315.58 million, marking a 2.9% year-over-year increase. Despite a 3% rise in student enrollment, the U.S. Higher Education segment saw a revenue decline of 1.5% to $214.3 million, and operating income margin dropped to 8.3% from 15.1% the previous year. The Education Technology Services segment, however, experienced a significant revenue increase of 39.3% to $30.5 million, fueled by growth in Sophia Learning subscriptions and employer partnerships.
Additionally, Strategic Education has appointed Deloitte & Touche LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. This change follows the dismissal of PricewaterhouseCoopers LLP, with no reported disagreements on accounting principles or practices. Meanwhile, Truist Securities maintained a Buy rating on Strategic Education, noting that the current stock price presents an attractive opportunity due to a 43% valuation discount compared to its peers. Truist analysts believe the recent sell-off, following the mixed fourth-quarter results, was excessive and see potential for future outperformance.
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