2U (TWOU) Raised to “Buy” at Zacks Investment Research
2U (NASDAQ:TWOU) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The firm currently has a $71.00 target price on the software maker’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 2.42% from the company’s previous close.
According to Zacks, “2U, Inc. is an education technology company. It is a provider of cloud-based software-as-a-service (SaaS) solutions that enables nonprofit colleges and universities to deliver their education to students anywhere. The Company offers graduate and undergraduate degree programs in social work, science, public administration, healthcare, laws, education, and business administration. It also offers a suite of technology-enabled services including content development, student acquisition, and state authorization services, as well as application advising, student and faculty support, and in-program student field placements. 2U, Inc. is based in Landover, Maryland. “
A number of other equities analysts have also issued reports on the company. BidaskClub raised 2U from a “buy” rating to a “strong-buy” rating in a research report on Thursday. Robert W. Baird reaffirmed a “buy” rating on shares of 2U in a research report on Tuesday. Macquarie started coverage on 2U in a research report on Thursday, December 7th. They issued an “outperform” rating and a $71.00 target price on the stock. KeyCorp started coverage on 2U in a report on Monday, November 20th. They issued an “overweight” rating for the company. Finally, Citigroup boosted their price target on 2U from $57.00 to $80.00 and gave the company a “buy” rating in a report on Monday, November 20th. Eleven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company’s stock. 2U presently has an average rating of “Buy” and a consensus target price of $71.36.
2U (NASDAQ:TWOU) last announced its earnings results on Tuesday, November 7th. The software maker reported ($0.15) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.16) by $0.01. 2U had a negative return on equity of 21.09% and a negative net margin of 20.98%. The company had revenue of $70.25 million for the quarter, compared to analyst estimates of $69.36 million. During the same period in the prior year, the company posted ($0.06) EPS. 2U’s quarterly revenue was up 35.1% on a year-over-year basis. analysts anticipate that 2U will post -0.6 earnings per share for the current year.
In other news, CEO Christopher J. Paucek sold 145,220 shares of the stock in a transaction on Thursday, November 16th. The stock was sold at an average price of $63.83, for a total value of $9,269,392.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider James Kenigsberg sold 9,545 shares of the stock in a transaction on Friday, December 22nd. The stock was sold at an average price of $62.86, for a total value of $599,998.70. The disclosure for this sale can be found here. In the last three months, insiders sold 181,923 shares of company stock valued at $11,588,620. Company insiders own 8.40% of the company’s stock.
Several large investors have recently added to or reduced their stakes in TWOU. Bamco Inc. NY grew its stake in shares of 2U by 334.0% in the third quarter. Bamco Inc. NY now owns 2,311,371 shares of the software maker’s stock worth $129,529,000 after purchasing an additional 1,778,783 shares in the last quarter. Wells Fargo & Company MN grew its stake in shares of 2U by 94.3% in the third quarter. Wells Fargo & Company MN now owns 1,381,103 shares of the software maker’s stock worth $77,397,000 after purchasing an additional 670,258 shares in the last quarter. Lord Abbett & CO. LLC grew its stake in shares of 2U by 64.1% in the second quarter. Lord Abbett & CO. LLC now owns 1,378,603 shares of the software maker’s stock worth $64,684,000 after purchasing an additional 538,487 shares in the last quarter. Zevenbergen Capital Investments LLC grew its stake in shares of 2U by 71.4% in the second quarter. Zevenbergen Capital Investments LLC now owns 903,285 shares of the software maker’s stock worth $42,382,000 after purchasing an additional 376,405 shares in the last quarter. Finally, Stephens Investment Management Group LLC bought a new position in shares of 2U in the third quarter worth $19,586,000.
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2U Company Profile
2U, Inc is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs.
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