2U (NASDAQ:TWOU) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research downgraded shares of 2U (NASDAQ:TWOU) from a hold rating to a sell rating in a research note released on Saturday, Zacks.com reports.

According to Zacks, “2U, Inc. is an education technology company. It is a provider of cloud-based software-as-a-service (SaaS) solutions that enables nonprofit colleges and universities to deliver their education to students anywhere. The Company offers graduate and undergraduate degree programs in social work, science, public administration, healthcare, laws, education, and business administration. It also offers a suite of technology-enabled services including content development, student acquisition, and state authorization services, as well as application advising, student and faculty support, and in-program student field placements. 2U, Inc. is based in Landover, Maryland. “

Other equities analysts have also recently issued research reports about the stock. BMO Capital Markets upped their target price on shares of 2U from $31.00 to $43.00 and gave the company an outperform rating in a research note on Monday, May 18th. BidaskClub upgraded shares of 2U from a buy rating to a strong-buy rating in a research note on Friday, June 19th. Barrington Research increased their price objective on shares of 2U from $50.00 to $55.00 and gave the stock an outperform rating in a research note on Friday. Piper Sandler increased their price objective on shares of 2U from $42.00 to $49.00 and gave the stock an overweight rating in a research note on Tuesday, July 28th. Finally, Credit Suisse Group upgraded shares of 2U from a neutral rating to an outperform rating and increased their price objective for the stock from $28.00 to $48.00 in a research note on Friday. One research analyst has rated the stock with a sell rating, three have issued a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company. 2U presently has an average rating of Buy and an average price target of $39.50.

TWOU traded up $3.23 during midday trading on Friday, hitting $47.10. 4,389,544 shares of the company traded hands, compared to its average volume of 1,527,935. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 0.48. The firm has a market capitalization of $3.01 billion, a PE ratio of -9.61 and a beta of 0.78. The company’s 50-day moving average is $39.01 and its 200 day moving average is $28.63. 2U has a 52 week low of $11.37 and a 52 week high of $48.23.

2U (NASDAQ:TWOU) last posted its earnings results on Thursday, July 30th. The software maker reported ($0.34) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.75) by $0.41. The business had revenue of $182.69 million for the quarter, compared to analysts’ expectations of $175.12 million. 2U had a negative net margin of 46.21% and a negative return on equity of 22.05%. On average, sell-side analysts predict that 2U will post -2.5 earnings per share for the current fiscal year.

In related news, CEO Christopher J. Paucek sold 150,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $38.12, for a total value of $5,718,000.00. Following the completion of the sale, the chief executive officer now directly owns 702,600 shares of the company’s stock, valued at approximately $26,783,112. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CTO James Kenigsberg sold 33,900 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $47.00, for a total transaction of $1,593,300.00. Following the completion of the sale, the chief technology officer now directly owns 120,921 shares of the company’s stock, valued at $5,683,287. The disclosure for this sale can be found here. Insiders sold a total of 216,900 shares of company stock valued at $8,396,010 over the last three months. 4.50% of the stock is currently owned by insiders.

Institutional investors have recently added to or reduced their stakes in the stock. Victory Capital Management Inc. boosted its position in shares of 2U by 11.9% during the 4th quarter. Victory Capital Management Inc. now owns 11,820 shares of the software maker’s stock valued at $284,000 after acquiring an additional 1,257 shares during the last quarter. Bank of New York Mellon Corp lifted its position in 2U by 14.6% in the fourth quarter. Bank of New York Mellon Corp now owns 219,716 shares of the software maker’s stock worth $5,270,000 after buying an additional 28,039 shares during the last quarter. Alliancebernstein L.P. lifted its position in 2U by 5.6% in the fourth quarter. Alliancebernstein L.P. now owns 31,534 shares of the software maker’s stock worth $757,000 after buying an additional 1,683 shares during the last quarter. Geode Capital Management LLC lifted its position in 2U by 5.2% in the fourth quarter. Geode Capital Management LLC now owns 695,646 shares of the software maker’s stock worth $16,688,000 after buying an additional 34,559 shares during the last quarter. Finally, Sunbelt Securities Inc. bought a new stake in 2U in the fourth quarter worth $2,783,000.

About 2U

2U, Inc operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting.

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