K12 (LRN) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research lowered shares of K12 (NYSE:LRN) from a hold rating to a sell rating in a research note published on Thursday, December 28th.

According to Zacks, “K12 Inc., a technology-based education company, is a leading national provider of proprietary curriculum and educational services created for online delivery to students in kindergarten through 12th grade, or K-12. Its mission is to maximize a child’s potential by providing access to an engaging and effective education, regardless of geographic location or socio-economic background. “

Separately, BMO Capital Markets reaffirmed a buy rating and set a $21.00 target price on shares of K12 in a report on Wednesday, October 25th.

Shares of K12 (LRN) opened at $16.51 on Thursday. The company has a current ratio of 3.57, a quick ratio of 3.43 and a debt-to-equity ratio of 0.03. The stock has a market cap of $682.40, a P/E ratio of 103.19, a price-to-earnings-growth ratio of 2.05 and a beta of -0.26. K12 has a 1 year low of $15.07 and a 1 year high of $21.18.

K12 (NYSE:LRN) last announced its earnings results on Thursday, October 26th. The company reported ($0.21) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.36) by $0.15. K12 had a net margin of 0.70% and a return on equity of 4.16%. The company had revenue of $228.80 million for the quarter, compared to analysts’ expectations of $235.15 million. During the same period last year, the firm earned ($0.36) earnings per share. The business’s revenue for the quarter was down .1% on a year-over-year basis. sell-side analysts anticipate that K12 will post 0.51 EPS for the current fiscal year.

In related news, CFO James Jeaho Rhyu sold 15,000 shares of K12 stock in a transaction that occurred on Friday, October 20th. The shares were sold at an average price of $18.00, for a total value of $270,000.00. Following the transaction, the chief financial officer now directly owns 204,591 shares of the company’s stock, valued at $3,682,638. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 9.61% of the company’s stock.

A number of large investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP increased its stake in K12 by 3.8% in the third quarter. Dimensional Fund Advisors LP now owns 3,110,388 shares of the company’s stock valued at $55,490,000 after acquiring an additional 113,779 shares during the last quarter. Vanguard Group Inc. increased its stake in K12 by 1.8% in the second quarter. Vanguard Group Inc. now owns 2,787,709 shares of the company’s stock valued at $49,955,000 after acquiring an additional 50,164 shares during the last quarter. Numeric Investors LLC boosted its position in K12 by 18.4% in the second quarter. Numeric Investors LLC now owns 1,207,595 shares of the company’s stock valued at $21,640,000 after buying an additional 187,800 shares in the last quarter. Palisade Capital Management LLC NJ boosted its position in K12 by 7.9% in the third quarter. Palisade Capital Management LLC NJ now owns 1,196,274 shares of the company’s stock valued at $21,342,000 after buying an additional 87,747 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its position in K12 by 12.4% in the second quarter. JPMorgan Chase & Co. now owns 939,687 shares of the company’s stock valued at $16,839,000 after buying an additional 103,927 shares in the last quarter. 78.46% of the stock is currently owned by institutional investors and hedge funds.

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K12 Company Profile

K12 Inc (K12) is a technology-based education company. The Company offers curriculum, software systems and educational services designed to facilitate individualized learning for students in kindergarten through 12th grade (K-12). It provides a continuum of technology-based educational products and solutions to public school districts, public schools, virtual charter schools, private schools and families.

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