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

Zacks Investment Research downgraded shares of Capella Education Company (NASDAQ:CPLA) from a buy rating to a hold rating in a research note released on Tuesday, November 7th.

According to Zacks, “Capella’s third-quarter earnings surpassed the Zacks Consensus Estimate by 7.4%, while revenues missed the same by 1.4%. However, earnings declined 9.9% year over year. Revenues improved 1% from the year-ago level despite declining enrollment. Capella University’s total active enrollment declined 1.3% and new enrollment dropped 2.1% on a year-over-year basis. This apart, Strayer Education and Capella’s merger announcement hogged the limelight. The companies will combine in an all-stock deal of equal transactions, expected to close in the third quarter of 2018. Post completion, Capella’s shareholders will own approximately 48% of the combined company on a fully diluted basis. The merger is expected to ensure student success and positive employment outcomes.”

A number of other research analysts also recently commented on CPLA. BidaskClub downgraded shares of Capella Education from a sell rating to a strong sell rating in a research note on Saturday, August 5th. 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 restated a hold rating on shares of Capella Education in a research report on Wednesday, November 1st. Finally, Barrington Research reduced their price target on shares of Capella Education from $98.00 to $90.00 and set an outperform rating on the stock in a research report on Tuesday, July 25th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company. Capella Education presently has a consensus rating of Hold and a consensus target price of $92.20.

Capella Education (CPLA) traded down $1.40 on Tuesday, reaching $81.35. 90,292 shares of the company were exchanged, compared to its average volume of 72,976. Capella Education has a 1-year low of $65.15 and a 1-year high of $99.25. The firm has a market cap of $955.50, a price-to-earnings ratio of 23.22, a price-to-earnings-growth ratio of 2.71 and a beta of 0.39.

Capella Education (NASDAQ:CPLA) last posted its quarterly earnings data on Monday, October 30th. The company reported $0.73 EPS for the quarter, beating the Zacks’ consensus estimate of $0.68 by $0.05. Capella Education had a net margin of 9.60% and a return on equity of 19.21%. The firm had revenue of $107.01 million for the quarter, compared to the consensus estimate of $108.10 million. During the same period in the prior year, the firm posted $0.81 EPS. The firm’s revenue was up 1.0% compared to the same quarter last year. sell-side analysts anticipate that Capella Education will post 3.56 earnings per share for the current year.

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A number of large investors have recently modified their holdings of the stock. Cubist Systematic Strategies LLC bought a new stake in Capella Education in the 3rd quarter valued at about $220,000. Royce & Associates LP lifted its position in Capella Education by 4.4% in the 3rd quarter. Royce & Associates LP now owns 878,655 shares of the company’s stock valued at $61,638,000 after purchasing an additional 37,154 shares during the last quarter. OxFORD Asset Management LLP lifted its position in Capella Education by 267.1% in the 3rd quarter. OxFORD Asset Management LLP now owns 12,880 shares of the company’s stock valued at $910,000 after purchasing an additional 9,371 shares during the last quarter. Wells Fargo & Company MN lifted its position in Capella Education by 6.9% in the 3rd quarter. Wells Fargo & Company MN now owns 72,184 shares of the company’s stock valued at $5,064,000 after purchasing an additional 4,678 shares during the last quarter. Finally, Fuller & Thaler Asset Management Inc. lifted its position in Capella Education by 12.2% in the 3rd quarter. Fuller & Thaler Asset Management Inc. now owns 63,280 shares of the company’s stock valued at $4,439,000 after purchasing an additional 6,900 shares during the last quarter. Hedge funds and other institutional investors own 92.15% of the company’s stock.

About Capella Education

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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