Investors Purchase Large Volume of Put Options on K12 (LRN)

K12 Inc. (NYSE:LRN) was the recipient of unusually large options trading activity on Tuesday. Stock traders acquired 503 put options on the stock. This represents an increase of approximately 662% compared to the average volume of 66 put options.

LRN has been the topic of several research reports. Barrington Research reiterated an “outperform” rating and set a $30.00 price objective (up previously from $25.00) on shares of K12 in a research note on Wednesday, January 23rd. Zacks Investment Research upgraded shares of K12 from a “hold” rating to a “buy” rating and set a $33.00 price objective on the stock in a research note on Friday, January 25th. Finally, ValuEngine upgraded shares of K12 from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, January 29th. One research analyst has rated the stock with a hold rating, two have issued a buy rating and two have given a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and an average price target of $31.50.

NYSE LRN opened at $31.83 on Thursday. K12 has a 52 week low of $15.72 and a 52 week high of $37.43. The company has a quick ratio of 3.39, a current ratio of 3.51 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of 46.81, a PEG ratio of 2.52 and a beta of 0.10.

K12 (NYSE:LRN) last posted its earnings results on Tuesday, April 23rd. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.37 by $0.07. K12 had a net margin of 4.33% and a return on equity of 7.23%. The firm had revenue of $253.25 million during the quarter, compared to analysts’ expectations of $252.49 million. During the same quarter in the prior year, the firm earned $0.32 EPS. K12’s quarterly revenue was up 8.8% on a year-over-year basis. As a group, equities analysts expect that K12 will post 0.84 earnings per share for the current year.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. First Trust Advisors LP grew its position in K12 by 0.9% in the 1st quarter. First Trust Advisors LP now owns 68,385 shares of the company’s stock worth $2,334,000 after purchasing an additional 578 shares during the last quarter. One Wealth Advisors LLC grew its position in K12 by 7.5% in the 4th quarter. One Wealth Advisors LLC now owns 9,631 shares of the company’s stock worth $239,000 after purchasing an additional 676 shares during the last quarter. Advisor Group Inc. grew its position in K12 by 12.8% in the 1st quarter. Advisor Group Inc. now owns 6,339 shares of the company’s stock worth $216,000 after purchasing an additional 721 shares during the last quarter. Investors Research Corp bought a new position in K12 in the 1st quarter worth about $27,000. Finally, Legal & General Group Plc grew its position in K12 by 17.4% in the 4th quarter. Legal & General Group Plc now owns 6,774 shares of the company’s stock worth $168,000 after purchasing an additional 1,005 shares during the last quarter. Hedge funds and other institutional investors own 84.11% of the company’s stock.

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K12 Company Profile

K12 Inc, a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally. The company also offers curriculum and technology solutions for full-time virtual and blended programs; full-time virtual programs, semester courses, and supplemental educational products; teacher training, teaching, and other academic and technology support services to public schools, school districts, private schools, charter schools, early childhood learning centers, and corporate partners.

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