“Nutanix is one of our top 2018 picks, given our bullish belief that investors underappreciate its shift to a software model. We believe the shift will (1) lessen sales friction with OEM and channel partners, (2) expand Nutanix’s opportunities in hybrid- cloud deployments and with subscription services (first with Xi), and (3) deliver faster than expected gross margin expansion. While investor expectations and valuation already reflect a positive shift for the software transition, we believe confidence will grow and multiples will expand further as results over the next quarters confirm a quick exit from hardware (targeted 2/3 by end of FY18) and a big shift to software-heavy product gross margins (we believe eventually >80%). Reiterate Outperform and raise price target to $43 from $40.”,” the firm’s analyst wrote.
A number of other analysts also recently weighed in on TWOU. Compass Point reiterated a buy rating and set a $62.00 price target (up from $56.00) on shares of 2U in a report on Monday, September 11th. Needham & Company LLC reiterated a buy rating and set a $66.00 price target (up from $62.00) on shares of 2U in a report on Friday, October 6th. Oppenheimer reiterated a buy rating and set a $65.00 price target (up from $55.00) on shares of 2U in a report on Friday, October 6th. Zacks Investment Research upgraded 2U from a sell rating to a hold rating in a report on Wednesday, October 11th. Finally, BMO Capital Markets reiterated a buy rating and set a $68.00 price target on shares of 2U in a report on Wednesday, October 25th. One research analyst has rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. 2U has an average rating of Buy and an average price target of $69.64.
2U (NASDAQ:TWOU) last issued its quarterly earnings results on Tuesday, November 7th. The software maker reported ($0.15) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.16) by $0.01. 2U had a negative return on equity of 13.02% and a negative net margin of 12.49%. The firm had revenue of $70.25 million during the quarter, compared to the consensus estimate of $69.36 million. During the same period last year, the business posted ($0.06) EPS. The business’s revenue was up 35.1% compared to the same quarter last year. analysts forecast that 2U will post -0.6 earnings per share for the current fiscal year.
In other news, CMO Harsha Mokkarala sold 22,658 shares of the firm’s stock in a transaction dated Friday, November 10th. The stock was sold at an average price of $63.25, for a total value of $1,433,118.50. Following the completion of the sale, the chief marketing officer now directly owns 47,869 shares in the company, valued at approximately $3,027,714.25. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Christopher J. Paucek sold 145,220 shares of the firm’s stock in a transaction dated Thursday, November 16th. The shares were sold at an average price of $63.83, for a total value of $9,269,392.60. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 181,923 shares of company stock valued at $11,588,620. 8.40% of the stock is currently owned by company insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its stake in shares of 2U by 7.4% in the 2nd quarter. Vanguard Group Inc. now owns 3,550,031 shares of the software maker’s stock valued at $166,567,000 after buying an additional 244,191 shares during the period. BlackRock Inc. grew its stake in shares of 2U by 13.3% in the 2nd quarter. BlackRock Inc. now owns 2,628,814 shares of the software maker’s stock valued at $123,344,000 after buying an additional 308,339 shares during the period. Bamco Inc. NY grew its stake in shares of 2U by 334.0% in the 3rd quarter. Bamco Inc. NY now owns 2,311,371 shares of the software maker’s stock valued at $129,529,000 after buying an additional 1,778,783 shares during the period. Wells Fargo & Company MN grew its stake in shares of 2U by 94.3% in the 3rd quarter. Wells Fargo & Company MN now owns 1,381,103 shares of the software maker’s stock valued at $77,397,000 after buying an additional 670,258 shares during the period. Finally, Lord Abbett & CO. LLC grew its stake in shares of 2U by 64.1% in the 2nd quarter. Lord Abbett & CO. LLC now owns 1,378,603 shares of the software maker’s stock valued at $64,684,000 after buying an additional 538,487 shares during the period.
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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