Strategic Education (NASDAQ:STRA) Raised to Strong-Buy at Wall Street Zen

Strategic Education (NASDAQ:STRA) was upgraded by analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a research report issued on Saturday.

A number of other equities analysts have also commented on STRA. Barrington Research reaffirmed an “outperform” rating and set a $105.00 target price on shares of Strategic Education in a research report on Monday, January 26th. Weiss Ratings reissued a “hold (c)” rating on shares of Strategic Education in a research note on Thursday, January 22nd. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Strategic Education currently has an average rating of “Moderate Buy” and a consensus price target of $99.33.

Strategic Education Stock Performance

Shares of NASDAQ STRA opened at $82.28 on Friday. Strategic Education has a fifty-two week low of $72.17 and a fifty-two week high of $93.45. The company has a market cap of $1.93 billion, a price-to-earnings ratio of 15.18, a PEG ratio of 0.81 and a beta of 0.55. The business’s 50 day moving average price is $81.07 and its 200-day moving average price is $80.73.

Strategic Education (NASDAQ:STRA) last issued its earnings results on Thursday, February 26th. The health services provider reported $1.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.47 by $0.27. The firm had revenue of $311.46 million during the quarter, compared to analyst estimates of $322.29 million. Strategic Education had a net margin of 9.98% and a return on equity of 8.73%. The business’s revenue was up 3.8% on a year-over-year basis. During the same period in the previous year, the firm earned $1.27 earnings per share. Sell-side analysts predict that Strategic Education will post 4.79 earnings per share for the current year.

Insider Activity

In other news, CEO Raymond Karl Mcdonnell sold 38,840 shares of Strategic Education stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $75.35, for a total value of $2,926,594.00. Following the transaction, the chief executive officer directly owned 106,332 shares in the company, valued at approximately $8,012,116.20. This trade represents a 26.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 3.30% of the company’s stock.

Hedge Funds Weigh In On Strategic Education

Several institutional investors and hedge funds have recently added to or reduced their stakes in STRA. Burgundy Asset Management Ltd. lifted its position in shares of Strategic Education by 3.3% during the second quarter. Burgundy Asset Management Ltd. now owns 1,524,317 shares of the health services provider’s stock valued at $129,765,000 after buying an additional 48,486 shares during the last quarter. Bank of Montreal Can raised its stake in shares of Strategic Education by 62,355.4% during the 4th quarter. Bank of Montreal Can now owns 1,467,702 shares of the health services provider’s stock worth $117,710,000 after acquiring an additional 1,465,352 shares in the last quarter. State Street Corp lifted its position in Strategic Education by 0.8% during the fourth quarter. State Street Corp now owns 881,089 shares of the health services provider’s stock valued at $70,663,000 after acquiring an additional 6,737 shares during the last quarter. Geode Capital Management LLC boosted its stake in Strategic Education by 4.6% in the second quarter. Geode Capital Management LLC now owns 610,839 shares of the health services provider’s stock valued at $52,007,000 after acquiring an additional 26,872 shares in the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in Strategic Education by 6.1% in the second quarter. Envestnet Asset Management Inc. now owns 449,578 shares of the health services provider’s stock valued at $38,273,000 after acquiring an additional 26,029 shares in the last quarter. Hedge funds and other institutional investors own 93.27% of the company’s stock.

Key Strategic Education News

Here are the key news stories impacting Strategic Education this week:

• Positive Sentiment: Q4 EPS beat — STRA reported $1.74 EPS vs. a $1.47 consensus, driving upside to estimates and supporting the stock. Read More.
• Positive Sentiment: Management announced an additional $70M of AI-driven expense savings through 2027 and plans to expand employer-focused enrollment channels — a structural margin lever that supports longer‑term profitability. Read More.
• Positive Sentiment: Dividend declared — a $0.60 quarterly payout (ex-dividend March 9, paid March 16) yields ~3.0% and increases income appeal for yield-seeking investors.
• Neutral Sentiment: Top-line mixed — revenue of $311.46M was up 3.8% YoY but came in below analyst expectations (~$322.3M), leaving the growth outlook ambiguous despite the EPS beat. Read More.
• Neutral Sentiment: Earnings materials available — full Q4 2025 call transcript and slide deck give detail on enrollment trends, margin drivers and the rollout of cost savings for investors who want management color. Read More.
• Negative Sentiment: Enrollment headwinds flagged — coverage highlights risk that weaker enrollments could constrain future revenue growth and limit the benefit of margin initiatives. Read More.
• Negative Sentiment: Insider selling — CEO Raymond McDonnell sold 38,840 shares (~$2.93M) late February, cutting his stake by ~26.8%, which some investors may view as a negative signal. Read More.

About Strategic Education

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.