Stride Inc. announces board member resignation

Stride Inc. (NYSE:LRN), a provider of educational services with a market capitalization of $5.8 billion, reported on Monday that Robert E. Knowling Jr. has resigned from its Board of Directors and all related committees, effective immediately. The announcement, based on a recent SEC filing, clarified that Knowling’s departure was not due to any disagreements with the company regarding operations, policies, or practices. According to InvestingPro data, Stride maintains strong financial health with a "GREAT" overall score.

The resignation, disclosed in a Form 8-K filed with the Securities and Exchange Commission, comes without a successor named at this time. Stride Inc., formerly known as K12 Inc ., operates out of Reston, Virginia, and is incorporated in Delaware. The company’s fiscal year concludes at the end of June. The company has demonstrated strong operational performance, with revenue growth of ~13% in the last twelve months and a healthy gross profit margin of ~39%.

Robert E. Knowling Jr.’s decision to step down marks a change in the composition of the Stride board, which oversees the strategic direction of the company. The filing did not elaborate on the reasons for Knowling’s departure or any plans for filling the vacancy left by him.

The company’s stock, which trades under the ticker LRN, is listed on the New York Stock Exchange and has shown remarkable performance, with a 137% return over the past year. Trading near $136, the stock is currently fairly valued according to InvestingPro analysis. The company is scheduled to report its next earnings on April 29, 2025. As per the filing, there are no further details provided about any potential impacts on the company’s governance or operations following Knowling’s resignation.

This development follows the standard reporting procedures for public companies, ensuring transparency with shareholders and the public about significant changes within the company’s leadership. Stride Inc.’s business phone number is listed as (703) 483-7000, and the address remains at 11720 Plaza America Drive, 9th Floor, Reston, Virginia 20190.

The information in this article is derived from Stride Inc.’s SEC filing and enhanced with financial data from InvestingPro, which offers comprehensive analysis through its Pro Research Report, including 14+ additional key insights about Stride’s financial health and market position. The analysis is presented without speculation or subjective assessment, adhering to the principles of objective and factual reporting.

In other recent news, Stride Inc. reported a strong performance in its Q2 2024 earnings, surpassing analyst expectations with earnings per share of $2.03, compared to the forecasted $1.92, and revenue of $587.2 million, exceeding the anticipated $562.39 million. This robust financial showing was highlighted by a 16% year-over-year revenue increase and record enrollment figures, reaching 230,000 students. Following this, BMO Capital Markets raised its price target for Stride to $139, maintaining an Outperform rating, citing confidence in the company’s growth potential despite recent market concerns over government funding. Canaccord Genuity also updated its price target for Stride to $145, reiterating a Buy rating, and acknowledged the company’s enrollment momentum and minimal reliance on federal funding, which constitutes less than 5% of Stride’s total revenue.

Morgan Stanley (NYSE:MS), however, maintained an Equalweight rating with a $117 price target, emphasizing that the majority of K12 funding comes from state and local governments, thus downplaying fears related to the Department of Education’s potential shutdown. Stride’s management has been proactive in addressing these concerns, noting that federal funding changes are unlikely to significantly impact the company. The company’s strategic focus on improving marketing and student acquisition has contributed to its strong performance in the first half of fiscal year 2025, with continued growth anticipated. As analysts weigh in, Stride remains under close watch by investors, with its stock performance reflecting the market’s response to these recent developments.

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