2U (NASDAQ:TWOU) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of 2U (NASDAQ:TWOUGet Rating) from a hold rating to a sell rating in a report released on Wednesday morning, 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. “

Several other brokerages have also recently weighed in on TWOU. Berenberg Bank cut shares of 2U from a buy rating to a hold rating and set a $17.00 price target on the stock. in a research report on Thursday, February 10th. Morgan Stanley dropped their price target on shares of 2U from $22.00 to $17.00 and set an equal weight rating on the stock in a research report on Thursday, April 14th. Barrington Research dropped their price target on shares of 2U from $25.00 to $16.00 in a research report on Friday, May 6th. The Goldman Sachs Group raised shares of 2U from a neutral rating to a buy rating and dropped their price target for the company from $42.00 to $25.00 in a research report on Wednesday, February 2nd. Finally, StockNews.com assumed coverage on shares of 2U in a research report on Thursday, March 31st. They issued a sell rating on the stock. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of Hold and a consensus target price of $24.36.

TWOU stock opened at $9.81 on Wednesday. The stock has a market capitalization of $755.27 million, a PE ratio of -2.70 and a beta of 1.22. The company’s 50-day moving average is $11.38 and its 200-day moving average is $16.20. The company has a debt-to-equity ratio of 1.42, a current ratio of 1.09 and a quick ratio of 1.18. 2U has a 1 year low of $8.12 and a 1 year high of $46.52.

2U (NASDAQ:TWOUGet Rating) last released its quarterly earnings data on Thursday, May 5th. The software maker reported ($0.24) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.26) by $0.02. 2U had a negative net margin of 28.45% and a negative return on equity of 18.88%. The company had revenue of $253.33 million for the quarter, compared to analysts’ expectations of $252.97 million. During the same quarter in the prior year, the firm earned ($0.46) EPS. The business’s revenue was up 9.0% on a year-over-year basis. On average, analysts anticipate that 2U will post -2.14 earnings per share for the current fiscal year.

In other 2U news, COO Mark Chernis acquired 33,482 shares of the business’s stock in a transaction that occurred on Monday, February 14th. The stock was bought at an average cost of $9.10 per share, with a total value of $304,686.20. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Christopher J. Paucek purchased 26,040 shares of the business’s stock in a transaction on Monday, February 14th. The stock was purchased at an average cost of $9.64 per share, with a total value of $251,025.60. The disclosure for this purchase can be found here. In the last 90 days, insiders have bought 169,522 shares of company stock valued at $1,593,012. 4.50% of the stock is currently owned by company insiders.

Large investors have recently made changes to their positions in the business. Tudor Investment Corp Et Al bought a new position in 2U in the 3rd quarter valued at $4,235,000. Davy Global Fund Management Ltd boosted its holdings in 2U by 4.7% in the 4th quarter. Davy Global Fund Management Ltd now owns 21,695 shares of the software maker’s stock valued at $435,000 after purchasing an additional 981 shares during the period. Artisan Partners Limited Partnership bought a new stake in shares of 2U during the 3rd quarter worth $23,361,000. Russell Investments Group Ltd. lifted its holdings in shares of 2U by 130.5% during the 4th quarter. Russell Investments Group Ltd. now owns 55,140 shares of the software maker’s stock worth $1,106,000 after acquiring an additional 31,222 shares during the last quarter. Finally, DekaBank Deutsche Girozentrale lifted its holdings in shares of 2U by 181.8% during the 4th quarter. DekaBank Deutsche Girozentrale now owns 183,182 shares of the software maker’s stock worth $3,604,000 after acquiring an additional 118,182 shares during the last quarter.

2U Company Profile (Get Rating)

2U, Inc operates as an education technology company in the United States and internationally. The company operates through two segments, Degree Program and Alternative Credential. The Degree Program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs.

See Also

Get a free copy of the Zacks research report on 2U (TWOU)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for 2U (NASDAQ:TWOU)

Receive News & Ratings for 2U Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for 2U and related companies with MarketBeat.com's FREE daily email newsletter.