2U (TWOU) Cut to Buy at ValuEngine

ValuEngine downgraded shares of 2U (NASDAQ:TWOU) from a strong-buy rating to a buy rating in a research note released on Saturday.

TWOU has been the topic of a number of other research reports. Barrington Research reaffirmed a buy rating and set a $100.00 price target on shares of 2U in a research note on Friday, August 3rd. BidaskClub downgraded shares of 2U from a hold rating to a sell rating in a research note on Thursday, October 4th. Piper Jaffray Companies initiated coverage on shares of 2U in a research note on Thursday, September 6th. They set a neutral rating and a $94.00 price target on the stock. DA Davidson initiated coverage on shares of 2U in a research note on Wednesday, August 29th. They set a buy rating and a $98.00 price target on the stock. Finally, Needham & Company LLC initiated coverage on shares of 2U in a research note on Tuesday, October 23rd. They set a buy rating and a $80.00 price target on the stock. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and eleven have assigned a buy rating to the company. 2U presently has an average rating of Buy and a consensus target price of $90.00.

NASDAQ:TWOU opened at $60.28 on Friday. The company has a current ratio of 5.71, a quick ratio of 5.71 and a debt-to-equity ratio of 0.04. The company has a market cap of $3.36 billion and a price-to-earnings ratio of -111.63. 2U has a fifty-two week low of $57.84 and a fifty-two week high of $98.58.



2U (NASDAQ:TWOU) last posted its quarterly earnings results on Thursday, August 2nd. The software maker reported ($0.19) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.40) by $0.21. The company had revenue of $97.40 million for the quarter, compared to the consensus estimate of $95.84 million. 2U had a negative net margin of 13.69% and a negative return on equity of 9.91%. 2U’s revenue was up 49.8% on a year-over-year basis. During the same quarter last year, the firm posted ($0.11) earnings per share. On average, equities analysts predict that 2U will post -0.71 earnings per share for the current fiscal year.

In other news, CEO Christopher J. Paucek sold 75,000 shares of the stock in a transaction on Monday, September 10th. The shares were sold at an average price of $84.42, for a total value of $6,331,500.00. Following the completion of the sale, the chief executive officer now owns 605,191 shares of the company’s stock, valued at $51,090,224.22. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Mark Chernis sold 10,000 shares of the stock in a transaction on Wednesday, September 12th. The stock was sold at an average price of $84.04, for a total transaction of $840,400.00. Following the completion of the sale, the chief operating officer now directly owns 43,602 shares of the company’s stock, valued at approximately $3,664,312.08. The disclosure for this sale can be found here. 5.00% of the stock is owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the company. Oak Ridge Investments LLC acquired a new stake in shares of 2U in the second quarter worth $7,020,000. Tibra Equities Europe Ltd acquired a new stake in shares of 2U in the second quarter worth $4,660,000. Bank of Montreal Can increased its position in shares of 2U by 63.4% in the second quarter. Bank of Montreal Can now owns 31,580 shares of the software maker’s stock worth $2,639,000 after acquiring an additional 12,258 shares in the last quarter. Fred Alger Management Inc. increased its position in shares of 2U by 3.7% in the second quarter. Fred Alger Management Inc. now owns 205,675 shares of the software maker’s stock worth $17,186,000 after acquiring an additional 7,366 shares in the last quarter. Finally, Independent Advisor Alliance acquired a new stake in shares of 2U in the second quarter worth $255,000.

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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Analyst Recommendations for 2U (NASDAQ:TWOU)

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