2U (NASDAQ:TWOU) Upgraded at BidaskClub

2U (NASDAQ:TWOU) was upgraded by equities research analysts at BidaskClub from a “strong sell” rating to a “sell” rating in a research note issued to investors on Thursday, BidAskClub reports.

Several other research analysts have also recently issued reports on the stock. BMO Capital Markets cut shares of 2U from an “outperform” rating to a “market perform” rating and cut their price target for the stock from $45.00 to $25.00 in a report on Wednesday, July 31st. Zacks Investment Research raised shares of 2U from a “sell” rating to a “hold” rating in a report on Saturday, October 5th. Macquarie cut shares of 2U from an “outperform” rating to a “neutral” rating and set a $29.00 target price for the company. in a report on Wednesday, July 31st. Robert W. Baird cut shares of 2U from an “outperform” rating to a “neutral” rating and dropped their target price for the company from $58.00 to $29.00 in a report on Wednesday, July 31st. Finally, Citigroup started coverage on shares of 2U in a report on Thursday, August 8th. They issued a “buy” rating and a $20.00 target price for the company. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating and three have given a buy rating to the stock. 2U presently has an average rating of “Hold” and a consensus price target of $43.93.

NASDAQ TWOU traded up $0.41 during trading hours on Thursday, hitting $18.00. 23,308 shares of the stock were exchanged, compared to its average volume of 1,207,162. The company has a market cap of $1.13 billion, a price-to-earnings ratio of -28.63 and a beta of 0.48. 2U has a 12-month low of $11.37 and a 12-month high of $80.49. The stock has a 50-day moving average of $17.20 and a 200 day moving average of $33.28. The company has a quick ratio of 2.19, a current ratio of 2.19 and a debt-to-equity ratio of 0.35.

2U (NASDAQ:TWOU) last posted its quarterly earnings results on Tuesday, July 30th. The software maker reported ($0.43) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.59) by $0.16. The firm had revenue of $135.50 million during the quarter, compared to analysts’ expectations of $124.38 million. 2U had a negative net margin of 11.39% and a negative return on equity of 7.63%. The firm’s revenue for the quarter was up 39.1% on a year-over-year basis. During the same period in the prior year, the company posted ($0.19) earnings per share. On average, equities research analysts expect that 2U will post -2.11 earnings per share for the current year.

In other 2U news, COO Mark Chernis purchased 32,250 shares of the stock in a transaction dated Wednesday, August 14th. The shares were acquired at an average cost of $15.47 per share, for a total transaction of $498,907.50. Following the completion of the transaction, the chief operating officer now directly owns 104,508 shares of the company’s stock, valued at $1,616,738.76. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, Director Gregory K. Peters purchased 72,358 shares of the stock in a transaction dated Wednesday, August 7th. The stock was acquired at an average price of $13.95 per share, for a total transaction of $1,009,394.10. Following the completion of the transaction, the director now directly owns 98,102 shares of the company’s stock, valued at $1,368,522.90. The disclosure for this purchase can be found here. Over the last ninety days, insiders acquired 159,608 shares of company stock valued at $2,264,302. 4.92% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in TWOU. Primecap Management Co. CA acquired a new stake in shares of 2U in the second quarter valued at approximately $45,349,000. ARK Investment Management LLC grew its position in shares of 2U by 171.3% in the second quarter. ARK Investment Management LLC now owns 1,403,952 shares of the software maker’s stock valued at $52,845,000 after purchasing an additional 886,408 shares during the last quarter. First Trust Advisors LP grew its position in shares of 2U by 53.9% in the second quarter. First Trust Advisors LP now owns 2,524,290 shares of the software maker’s stock valued at $95,014,000 after purchasing an additional 884,527 shares during the last quarter. Villere ST Denis J & Co. LLC grew its position in shares of 2U by 104.7% in the second quarter. Villere ST Denis J & Co. LLC now owns 1,539,816 shares of the software maker’s stock valued at $57,958,000 after purchasing an additional 787,686 shares during the last quarter. Finally, Jennison Associates LLC acquired a new stake in shares of 2U in the second quarter valued at approximately $22,693,000.

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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