Capella Education Co. (CPLA) Downgraded by Zacks Investment Research to “Hold”
Capella Education Co. (NASDAQ:CPLA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Capella Education reported impressive results in the first two quarters of 2016 with revenues, enrollment levels and earnings per share showing significant improvement. Total enrollment growth in the first two quarters of the year was driven by higher enrollment in FlexPath programs, improved early-cohort persistence and higher percentage of returning learners. Moreover, the company’s focus non-degree programs are encouraging and should top line in the long term. Capella expects the Hackbright Academy and DevMountain acquiistions to contribute to revenues in near term. However, revenues were hurt in the past two quarters by an unfavorable degree mix shift and change in accounting for revenue recognition. Moreover, an unfavorable shift in the student mix from PhD to the masters’ degree program is hurting revenue per student.”
A number of other analysts also recently commented on CPLA. Credit Suisse Group AG restated a “buy” rating on shares of Capella Education in a research note on Wednesday, June 8th. Barrington Research increased their price target on Capella Education from $60.00 to $66.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 27th. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Capella Education currently has an average rating of “Buy” and an average target price of $59.80.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/08/capella-education-co-cpla-downgraded-by-zacks-investment-research-to-hold.html
Shares of Capella Education (NASDAQ:CPLA) traded down 0.71% during trading on Wednesday, hitting $58.75. The stock had a trading volume of 43,640 shares. The firm has a market cap of $679.33 million, a price-to-earnings ratio of 18.22 and a beta of 1.05. Capella Education has a 52-week low of $39.06 and a 52-week high of $63.01. The firm’s 50-day moving average is $59.08 and its 200 day moving average is $55.20.
Capella Education (NASDAQ:CPLA) last issued its earnings results on Tuesday, July 26th. The company reported $0.82 EPS for the quarter, missing analysts’ consensus estimates of $0.87 by $0.05. Capella Education had a return on equity of 20.80% and a net margin of 9.12%. The company earned $106.70 million during the quarter, compared to analysts’ expectations of $105.93 million. During the same quarter in the previous year, the company earned $0.83 EPS. The firm’s quarterly revenue was up 2.0% compared to the same quarter last year. On average, analysts expect that Capella Education will post $3.49 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Shareholders of record on Friday, August 26th will be issued a dividend of $0.39 per share. The ex-dividend date of this dividend is Wednesday, August 24th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.66%. Capella Education’s payout ratio is currently 48.30%.
In other Capella Education news, Director Darrell R. Tukua sold 5,000 shares of the stock in a transaction that occurred on Thursday, August 25th. The stock was sold at an average price of $61.23, for a total transaction of $306,150.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO J Kevin Gilligan sold 16,892 shares of the stock in a transaction that occurred on Friday, August 19th. The shares were sold at an average price of $59.23, for a total value of $1,000,513.16. Following the transaction, the chief executive officer now directly owns 69,705 shares of the company’s stock, valued at approximately $4,128,627.15. The disclosure for this sale can be found here. Company insiders own 6.50% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Strs Ohio boosted its position in shares of Capella Education by 2.9% in the second quarter. Strs Ohio now owns 14,400 shares of the company’s stock worth $758,000 after buying an additional 400 shares during the last quarter. HL Financial Services LLC boosted its position in shares of Capella Education by 12.5% in the second quarter. HL Financial Services LLC now owns 28,734 shares of the company’s stock worth $1,513,000 after buying an additional 3,183 shares during the last quarter. BNP Paribas Arbitrage SA boosted its position in shares of Capella Education by 117.0% in the second quarter. BNP Paribas Arbitrage SA now owns 3,541 shares of the company’s stock worth $186,000 after buying an additional 1,909 shares during the last quarter. Arizona State Retirement System boosted its position in shares of Capella Education by 1.9% in the first quarter. Arizona State Retirement System now owns 5,439 shares of the company’s stock worth $286,000 after buying an additional 100 shares during the last quarter. Finally, Panagora Asset Management Inc. boosted its position in shares of Capella Education by 29.5% in the first quarter. Panagora Asset Management Inc. now owns 91,529 shares of the company’s stock worth $4,818,000 after buying an additional 20,848 shares during the last quarter. 90.37% of the stock is owned by institutional investors and hedge funds.
Capella Education Company Profile
Capella Education Company is an online postsecondary education services company. The Company’s academic programs are delivered through its subsidiary, Capella University (the University), which is an online academic institution offering online postsecondary education services primarily to working adults.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Capella Education Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Capella Education Co. and related companies with MarketBeat.com's FREE daily email newsletter.