Zacks Investment Research downgraded shares of Capella Education (NASDAQ:CPLA) from a buy rating to a hold rating in a research note issued to investors on Monday, January 8th.
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. That said, the company is focused on several initiatives to drive learner success in doctoral programs. Earnings estimates have also been moving upward for 2018 over the last 30 days.”
A number of other research analysts also recently issued reports on CPLA. BMO Capital Markets reiterated a buy rating and set a $86.00 price objective on shares of Capella Education in a research note on Monday, September 18th. Piper Jaffray Companies reiterated a hold rating on shares of Capella Education in a research note on Wednesday, November 1st. Finally, Barrington Research downgraded Capella Education from an outperform rating to a market perform rating in a research note on Monday, October 30th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $94.00.
Capella Education (CPLA) traded down $1.35 during trading on Monday, hitting $79.50. The company’s stock had a trading volume of 53,994 shares, compared to its average volume of 47,120. The company has a market cap of $924.11, a P/E ratio of 22.46, a P/E/G ratio of 2.54 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 released its quarterly earnings results on Monday, October 30th. The company reported $0.73 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.68 by $0.05. The business had revenue of $107.01 million during the quarter, compared to the consensus estimate of $108.10 million. Capella Education had a return on equity of 19.21% and a net margin of 9.60%. The business’s quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.81 EPS. sell-side analysts expect that Capella Education will post 3.58 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 18th. Stockholders of record on Friday, December 22nd will be issued a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a dividend yield of 2.16%. This is a boost from Capella Education’s previous quarterly dividend of $0.41. The ex-dividend date is Thursday, December 21st. Capella Education’s dividend payout ratio is 48.59%.
Institutional investors and hedge funds have recently modified their holdings of the company. Riverhead Capital Management LLC raised its holdings in shares of Capella Education by 105.3% during the 2nd quarter. Riverhead Capital Management LLC now owns 1,232 shares of the company’s stock worth $105,000 after acquiring an additional 632 shares in the last quarter. Flinton Capital Management LLC raised its holdings in shares of Capella Education by 76.9% during the 2nd quarter. Flinton Capital Management LLC now owns 1,564 shares of the company’s stock worth $134,000 after acquiring an additional 680 shares in the last quarter. Royal Bank of Canada raised its holdings in shares of Capella Education by 371.6% during the 2nd quarter. Royal Bank of Canada now owns 1,924 shares of the company’s stock worth $164,000 after acquiring an additional 1,516 shares in the last quarter. Parallax Volatility Advisers L.P. purchased a new stake in shares of Capella Education during the 2nd quarter worth approximately $178,000. Finally, Old Mutual Global Investors UK Ltd. purchased a new stake in shares of Capella Education during the 2nd quarter worth approximately $198,000. 92.46% of the stock is currently owned by institutional investors and hedge funds.
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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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