Credit Suisse Group AG Reiterates Buy Rating for Capella Education Co. (CPLA)
Capella Education Co. (NASDAQ:CPLA)‘s stock had its “buy” rating restated by analysts at Credit Suisse Group AG in a research note issued to investors on Tuesday.
The analysts wrote, “We know that Capella tuition is selectively discounted, though the company does not disclose specifics. Completion rate data applies only to first-time, full-time students. This data is therefore less helpful in evaluating Capella students, who often transfer credits from other schools they may have previously attended. The satisfaction data is not gathered in a scientific or systematic manner and is open to abuse similar to a Yelp review, in our view.””
Several other equities analysts have also recently weighed in on the stock. Zacks Investment Research cut shares of Capella Education from a “hold” rating to a “sell” rating in a research note on Tuesday, July 19th. Barrington Research raised their target price on shares of Capella Education from $60.00 to $66.00 and gave the company an “outperform” rating in a research note on Wednesday, July 27th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. Capella Education currently has an average rating of “Buy” and a consensus price target of $59.80.
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Capella Education (NASDAQ:CPLA) opened at 58.75 on Tuesday. The company has a market capitalization of $679.33 million, a P/E ratio of 18.22 and a beta of 1.05. The stock’s 50 day moving average is $59.08 and its 200 day moving average is $55.20. Capella Education has a 52 week low of $39.06 and a 52 week high of $63.01.
Capella Education (NASDAQ:CPLA) last posted its earnings results on Tuesday, July 26th. The company reported $0.82 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.87 by $0.05. The company had revenue of $106.70 million for the quarter, compared to analysts’ expectations of $105.93 million. Capella Education had a net margin of 9.12% and a return on equity of 20.80%. The business’s revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.83 earnings per share. On average, equities research analysts expect that Capella Education will post $3.49 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 14th. Shareholders of record on Friday, August 26th will be paid a $0.39 dividend. 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 news, CEO J Kevin Gilligan sold 16,892 shares of the firm’s stock in a transaction dated 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 completion of the sale, the chief executive officer now owns 69,705 shares in the company, valued at approximately $4,128,627.15. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Darrell R. Tukua sold 5,000 shares of the firm’s stock in a transaction dated Thursday, August 25th. The stock was sold at an average price of $61.23, for a total transaction of $306,150.00. The disclosure for this sale can be found here. 6.50% of the stock is currently owned by company insiders.
Several large investors have recently added to or reduced their stakes in CPLA. Royce & Associates LP raised its stake in Capella Education by 9.1% in the second quarter. Royce & Associates LP now owns 1,022,471 shares of the company’s stock valued at $53,823,000 after buying an additional 85,500 shares during the period. Vanguard Group Inc. raised its stake in Capella Education by 4.7% in the second quarter. Vanguard Group Inc. now owns 919,604 shares of the company’s stock valued at $48,408,000 after buying an additional 41,093 shares during the period. Makaira Partners LLC purchased a new stake in Capella Education during the first quarter valued at about $36,666,000. Dimensional Fund Advisors LP raised its stake in Capella Education by 7.6% in the second quarter. Dimensional Fund Advisors LP now owns 457,946 shares of the company’s stock valued at $24,105,000 after buying an additional 32,199 shares during the period. Finally, BlackRock Institutional Trust Company N.A. raised its stake in Capella Education by 1.5% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 296,247 shares of the company’s stock valued at $15,594,000 after buying an additional 4,513 shares during the period. Hedge funds and other institutional investors own 90.37% of the company’s stock.
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.
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