2U, Inc. (NASDAQ:TWOU) has recently received an average recommendation of “Moderate Buy” from nine research firms currently covering the company, according to Bloomberg Ratings. Out of these nine firms, four have provided a hold rating, while five have assigned a buy rating to the company’s stock. The average 1-year target price, as indicated by analysts who have covered the stock over the past year, is $6.04.
In recent news, insider Aaron Mccullough made a significant purchase of 45,700 shares of 2U’s stock on August 17th. The shares were acquired at an average cost of $3.14 per share, resulting in a total value of $143,498.00 for the transaction. Following this acquisition, Mccullough holds 348,524 shares of the company’s stock valued at $1,094,365.36. This acquisition was disclosed in a legal filing with the SEC and further details can be accessed through the provided link. It is worth noting that company insiders currently own 4.80% of 2U’s stock.
On August 8th, 2U released its quarterly earnings data which revealed that the software maker reported an earnings per share (EPS) of ($0.32) for the quarter. This fell short of the consensus estimate of ($0.24) by ($0.08). The company generated revenue amounting to $222.09 million during this period; however, this figure was below analysts’ expectations which stood at $233.67 million.
Additionally, it is important to note that 2U had a negative net margin of 38.89% and a negative return on equity of 15.18%. Based on estimates from equities research analysts, it is anticipated that for the current year, 2U will post earnings per share (EPS) of approximately -0.45.
As the company continues to be analyzed and evaluated by research firms, potential investors in 2U can consider these assessments and ratings when making their investment decisions. It is essential to carefully review all available information and consult with a financial advisor before investing in any stock for a comprehensive understanding of its potential risks and rewards.
[bs_slider_forecast ticker=”PRLB”]
Mixed Opinions and Uncertainty Surrounding 2U (NASDAQ: TWOU) Shares
In recent times, there has been a flurry of reports from analysts regarding the shares of 2U (NASDAQ: TWOU). Credit Suisse Group, for instance, has lowered its price target from $7.50 to $6.00 and has assigned a “neutral” rating to the stock based on their research report released on Wednesday, August 9th. Similarly, Robert W. Baird has downgraded 2U from an “outperform” rating to a “neutral” rating, along with decreasing the price objective from $12.00 to $4.00 in a research note published on the same date.
Furthermore, StockNews.com has recently begun coverage on the shares of 2U and issued a “hold” rating for the company as of Thursday, August 17th. In line with this sentiment, 500.com reaffirmed its “maintains” rating on 2U in a research report released earlier on Wednesday, May 31st. Lastly, Piper Sandler also reduced its target price on the stock from $6.00 to $4.00 and set a “neutral” rating in their report published on Thursday, August 10th.
Taking into consideration institutional activity surrounding TWOU shares, Guggenheim Capital LLC witnessed an increase of 3% in their holdings during the first quarter and now owns around 174,057 shares worth approximately $1,192,000 after purchasing an additional 5,095 shares during that period. Additionally, Healthcare of Ontario Pension Plan Trust Fund experienced growth by approximately 7.5% during the first quarter by accumulating an extra 109,400 shares valued at roughly $10,689,000.
Meanwhile,Venture capital firm Alpine Global Management LLC initiated a new position in TWOU during the fourth quarter with an approximate value of $120,000.Furthermore,Samalin Investment Counsel LLC augmented its stake by 93.0% and currently owns 33,106 shares worth about $208,000 after acquiring an additional 15,956 shares.With respect to the last institutional transaction mentioned in the text, Carolina Wealth Advisors LLC invested around $391,000 for a fresh stake in TWOU during the first quarter.
Interestingly, approximately 90.55% of the total stock is presently held by institutional investors and hedge funds, showcasing their significant involvement and influence over the company’s performance.
As for the stock’s recent activity on NASDAQ, TWOU opened at $2.38 on Friday. With a market capitalization of $193.78 million and a price-to-earnings ratio of -0.52, it is crucial to note that these figures hint at a challenging period for 2U. The company also has a beta value of 1.24.
Examining its financial health, 2U holds a debt-to-equity ratio of 2.92 along with current and quick ratios of 0.76 each. These ratios indicate potential liquidity concerns for the software maker.
Moreover, considering its moving averages, 2U has had a decline in its 50-day simple moving average which stands at $3.48 while its 200-day simple moving average is slightly higher at $4.52.
It is vital to mention that despite these statistics presented before us today,TWOU marks a significant downtrend as it hit its lowest point in a year at $2.36 compared to its highest point over this same period standing at $13.15.
In conclusion, the recent reports from various analysts carry mixed opinions regarding TWOU shares.Many have downgraded their ratings and even reduced price targets.Simultaneously several institutional investors have made moves related to their holdings which suggests continued uncertainty surrounding TWOU.However,it remains to be seen how future developments will impact this software maker’s stock in the upcoming days and weeks.
