K12 Target of Unusually High Options Trading (NYSE:LRN)

K12 Inc. (NYSE:LRN) was the recipient of some unusual options trading activity on Thursday. Stock traders purchased 469 put options on the stock. This is an increase of approximately 611% compared to the average daily volume of 66 put options.

In other news, insider James Jeaho Rhyu sold 15,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $26.25, for a total transaction of $393,750.00. Following the completion of the transaction, the insider now owns 268,536 shares of the company’s stock, valued at $7,049,070. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Nathaniel A. Davis sold 126,339 shares of the firm’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $30.21, for a total transaction of $3,816,701.19. Insiders have sold 162,362 shares of company stock valued at $4,773,470 in the last ninety days. Insiders own 5.75% of the company’s stock.

A number of large investors have recently bought and sold shares of the business. Renaissance Technologies LLC increased its position in shares of K12 by 5.6% during the fourth quarter. Renaissance Technologies LLC now owns 1,859,545 shares of the company’s stock worth $37,842,000 after acquiring an additional 98,245 shares in the last quarter. Wells Fargo & Company MN lifted its position in K12 by 12.0% in the 1st quarter. Wells Fargo & Company MN now owns 159,468 shares of the company’s stock valued at $3,008,000 after acquiring an additional 17,092 shares in the last quarter. M&T Bank Corp boosted its stake in K12 by 53.6% during the 1st quarter. M&T Bank Corp now owns 23,772 shares of the company’s stock valued at $449,000 after purchasing an additional 8,299 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in K12 by 23.9% during the 4th quarter. Goldman Sachs Group Inc. now owns 503,515 shares of the company’s stock worth $10,247,000 after purchasing an additional 97,249 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in shares of K12 by 3.7% in the first quarter. Geode Capital Management LLC now owns 546,324 shares of the company’s stock worth $10,303,000 after purchasing an additional 19,595 shares during the last quarter. Institutional investors and hedge funds own 85.39% of the company’s stock.

NYSE:LRN opened at $33.93 on Friday. The company has a current ratio of 1.89, a quick ratio of 1.81 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $1.41 billion, a price-to-earnings ratio of 59.53, a PEG ratio of 2.85 and a beta of 0.22. The firm has a fifty day simple moving average of $26.65 and a two-hundred day simple moving average of $21.75. K12 has a 12 month low of $15.06 and a 12 month high of $35.37.

K12 (NYSE:LRN) last posted its quarterly earnings results on Monday, April 27th. The company reported $0.22 EPS for the quarter, topping analysts’ consensus estimates of $0.19 by $0.03. The business had revenue of $257.15 million during the quarter, compared to analysts’ expectations of $253.83 million. K12 had a net margin of 2.23% and a return on equity of 3.56%. The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period last year, the company posted $0.44 earnings per share. Equities analysts predict that K12 will post 0.52 earnings per share for the current fiscal year.

LRN has been the subject of several recent analyst reports. Barrington Research reiterated a “buy” rating and set a $30.00 price objective on shares of K12 in a research report on Tuesday, April 28th. ValuEngine cut shares of K12 from a “buy” rating to a “hold” rating in a research report on Thursday, July 2nd. BMO Capital Markets increased their price objective on shares of K12 from $30.00 to $32.00 and gave the stock an “outperform” rating in a research report on Thursday, June 4th. Zacks Investment Research cut shares of K12 from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, July 1st. Finally, Sidoti cut shares of K12 from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $30.00 to $34.00 in a research report on Thursday. Three analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $31.00.

About K12

K12 Inc, a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally. The company also offers curriculum and technology solutions for full-time virtual and blended programs; full-time virtual programs, semester courses, and supplemental educational products; teacher training, teaching, and other academic and technology support services to public schools, school districts, private schools, charter schools, early childhood learning centers, and corporate partners.

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