2U (NASDAQ:TWOU)‘s stock had its “buy” rating reiterated by equities researchers at Robert W. Baird in a research report issued on Tuesday.
The analysts wrote, “Nutanix is one of our top 2018 picks, given our bullish belief that investors underappreciate its shift to a software model. We believe the shift will (1) lessen sales friction with OEM and channel partners, (2) expand Nutanix’s opportunities in hybrid- cloud deployments and with subscription services (first with Xi), and (3) deliver faster than expected gross margin expansion. While investor expectations and valuation already reflect a positive shift for the software transition, we believe confidence will grow and multiples will expand further as results over the next quarters confirm a quick exit from hardware (targeted 2/3 by end of FY18) and a big shift to software-heavy product gross margins (we believe eventually >80%). Reiterate Outperform and raise price target to $43 from $40.””
Other equities research analysts have also issued research reports about the stock. KeyCorp reissued an “overweight” rating and set a $73.00 price objective on shares of 2U in a research note on Friday, November 17th. Barrington Research reissued an “outperform” rating and set a $70.00 price objective on shares of 2U in a research note on Wednesday, November 8th. Needham & Company LLC boosted their price objective on shares of 2U from $66.00 to $72.00 and gave the stock a “buy” rating in a research note on Wednesday, November 8th. Oppenheimer reissued a “buy” rating and set a $65.00 price objective (up previously from $55.00) on shares of 2U in a research note on Friday, October 6th. Finally, Credit Suisse Group reissued an “outperform” rating and set a $70.00 price objective (up previously from $64.00) on shares of 2U in a research note on Wednesday, November 8th. One investment analyst has rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $69.64.
2U (NASDAQ:TWOU) last posted its quarterly earnings data on Tuesday, November 7th. The software maker reported ($0.15) EPS for the quarter, topping the consensus estimate of ($0.16) by $0.01. 2U had a negative net margin of 20.98% and a negative return on equity of 21.09%. The business had revenue of $70.25 million for the quarter, compared to analyst estimates of $69.36 million. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. 2U’s quarterly revenue was up 35.1% on a year-over-year basis. sell-side analysts expect that 2U will post -0.6 earnings per share for the current fiscal year.
In other news, Director Paul A. Maeder bought 67,830 shares of the company’s stock in a transaction dated Thursday, December 7th. The shares were purchased at an average price of $61.45 per share, for a total transaction of $4,168,153.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Christopher J. Paucek sold 145,220 shares of the company’s stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $63.83, for a total transaction of $9,269,392.60. The disclosure for this sale can be found here. In the last quarter, insiders sold 181,923 shares of company stock worth $11,588,620. Insiders own 8.40% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in shares of 2U by 182.2% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,622 shares of the software maker’s stock worth $123,000 after buying an additional 1,693 shares in the last quarter. Ameritas Investment Partners Inc. lifted its stake in shares of 2U by 21.4% in the second quarter. Ameritas Investment Partners Inc. now owns 3,844 shares of the software maker’s stock worth $180,000 after buying an additional 677 shares in the last quarter. Advisor Group Inc. lifted its stake in shares of 2U by 41.5% in the second quarter. Advisor Group Inc. now owns 4,476 shares of the software maker’s stock worth $210,000 after buying an additional 1,313 shares in the last quarter. Prudential Financial Inc. bought a new position in shares of 2U in the second quarter worth approximately $222,000. Finally, Edmond DE Rothschild Holding S.A. bought a new position in shares of 2U in the second quarter worth approximately $235,000.
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2U, Inc is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs.
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