Capella Education (CPLA) Raised to Buy at Zacks Investment Research

Capella Education (NASDAQ:CPLA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage currently has a $90.00 price objective on the stock. Zacks Investment Research‘s price objective would suggest a potential upside of 9.62% from the stock’s current price.

According to Zacks, “Capella University’s educational programs are specifically designed to meet the educational needs of working adults in targeted professions. Continuous innovation and course updates expand its product portfolio, which in turn boost enrollments and drive long-term growth. Meanwhile, Strayer Education and Capella announced an all-stock merger deal of equal transactions, expected to close in the third quarter of 2018. The merger is expected to ensure student success and positive employment outcomes. However, Capella has been witnessing a negative enrollment trend for its doctoral program. Capella’s shares have also underperformed the industry in the last one year.”

Several other equities research analysts have also recently commented on CPLA. Piper Jaffray Companies reissued a “hold” rating on shares of Capella Education in a research note on Wednesday, November 1st. BMO Capital Markets boosted their price target on Capella Education from $78.00 to $103.00 and gave the company an “outperform” rating in a research note on Tuesday, October 31st. Finally, Barrington Research cut Capella Education from an “outperform” rating to a “market perform” rating in a research note on Monday, October 30th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $94.33.

Shares of Capella Education (CPLA) traded up $1.75 during midday trading on Tuesday, hitting $82.10. The company had a trading volume of 79,029 shares, compared to its average volume of 49,727. The company has a market cap of $935.72, a PE ratio of 23.19, a price-to-earnings-growth ratio of 2.53 and a beta of 0.38. Capella Education has a 1-year low of $65.15 and a 1-year high of $99.25.

Capella Education (NASDAQ:CPLA) last announced its quarterly earnings results on Monday, October 30th. The company reported $0.73 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.68 by $0.05. The business had revenue of $107.01 million during the quarter, compared to analysts’ expectations of $108.10 million. Capella Education had a return on equity of 19.21% and a net margin of 9.60%. The firm’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.81 EPS. analysts expect that Capella Education will post 3.58 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. increased its position in shares of Capella Education by 1.8% during the second quarter. BlackRock Inc. now owns 1,412,409 shares of the company’s stock valued at $120,903,000 after acquiring an additional 24,678 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Capella Education by 1.4% during the second quarter. Vanguard Group Inc. now owns 1,127,235 shares of the company’s stock valued at $96,491,000 after acquiring an additional 15,769 shares during the last quarter. Renaissance Technologies LLC increased its position in shares of Capella Education by 2.0% during the second quarter. Renaissance Technologies LLC now owns 946,425 shares of the company’s stock valued at $81,014,000 after acquiring an additional 18,625 shares during the last quarter. Royce & Associates LP increased its position in shares of Capella Education by 4.4% during the third quarter. Royce & Associates LP now owns 878,655 shares of the company’s stock valued at $61,638,000 after acquiring an additional 37,154 shares during the last quarter. Finally, State Street Corp increased its position in shares of Capella Education by 4.8% during the second quarter. State Street Corp now owns 314,850 shares of the company’s stock valued at $26,957,000 after acquiring an additional 14,492 shares during the last quarter. 92.57% of the stock is owned by institutional investors.

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Capella Education Company Profile

Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment.

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