Capella Education (CPLA) Cut to Hold at Zacks Investment Research

Capella Education (NASDAQ:CPLA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.

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.”

Several other equities research analysts have also recently weighed in on CPLA. BMO Capital Markets reissued a “buy” rating and issued a $86.00 price objective on shares of Capella Education in a research report on Monday, September 18th. Piper Jaffray Companies reissued a “hold” rating on shares of Capella Education in a research report on Wednesday, November 1st. Finally, Barrington Research cut Capella Education from an “outperform” rating to a “market perform” rating in a research report on Monday, October 30th. One analyst has rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $93.67.

Shares of Capella Education (CPLA) opened at $79.15 on Monday. The stock has a market capitalization of $918.88, a P/E ratio of 22.36, a price-to-earnings-growth ratio of 2.49 and a beta of 0.38. Capella Education has a 12-month low of $65.15 and a 12-month high of $99.25.

Capella Education (NASDAQ:CPLA) last announced its earnings results on Monday, October 30th. The company reported $0.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.68 by $0.05. Capella Education had a return on equity of 19.21% and a net margin of 9.60%. The firm had revenue of $107.01 million during the quarter, compared to analysts’ expectations of $108.10 million. During the same quarter in the prior year, the business earned $0.81 earnings per share. The company’s revenue was up 1.0% on a year-over-year basis. equities analysts predict that Capella Education will post 3.58 earnings per share for the current fiscal year.

Several institutional investors and hedge funds have recently bought and sold shares of CPLA. Riverhead Capital Management LLC boosted its position in shares of Capella Education by 105.3% in the second quarter. Riverhead Capital Management LLC now owns 1,232 shares of the company’s stock valued at $105,000 after acquiring an additional 632 shares during the period. Flinton Capital Management LLC boosted its position in shares of Capella Education by 76.9% in the second quarter. Flinton Capital Management LLC now owns 1,564 shares of the company’s stock valued at $134,000 after acquiring an additional 680 shares during the period. Royal Bank of Canada boosted its position in shares of Capella Education by 371.6% in the second quarter. Royal Bank of Canada now owns 1,924 shares of the company’s stock valued at $164,000 after acquiring an additional 1,516 shares during the period. Parallax Volatility Advisers L.P. bought a new stake in shares of Capella Education in the second quarter valued at approximately $178,000. Finally, Old Mutual Global Investors UK Ltd. bought a new stake in shares of Capella Education in the second quarter valued at approximately $198,000. 92.46% 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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