DA Davidson Downgrades 2U (NASDAQ:TWOU) to Neutral

DA Davidson lowered shares of 2U (NASDAQ:TWOU) from a buy rating to a neutral rating in a research report released on Wednesday morning, FlyOnTheWall reports. They currently have $27.00 price objective on the software maker’s stock.

Other equities analysts also recently issued reports about the company. Barrington Research lowered their price objective on 2U from $90.00 to $75.00 and set an outperform rating for the company in a research report on Wednesday, May 8th. Robert W. Baird downgraded 2U from an outperform rating to a neutral rating and lowered their price objective for the stock from $58.00 to $29.00 in a research report on Wednesday. Macquarie downgraded 2U from an outperform rating to a neutral rating and set a $29.00 price objective for the company. in a research report on Wednesday. Piper Jaffray Companies lowered their price objective on 2U from $78.00 to $57.00 and set a neutral rating for the company in a research report on Wednesday, May 8th. Finally, Zacks Investment Research downgraded 2U from a buy rating to a hold rating in a research report on Saturday, July 27th. Two investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have given a buy rating to the stock. 2U currently has a consensus rating of Hold and an average target price of $49.08.

Shares of 2U stock traded down $0.24 on Wednesday, reaching $13.68. 5,724,044 shares of the company were exchanged, compared to its average volume of 3,327,899. 2U has a 1-year low of $11.37 and a 1-year high of $90.31. The company has a market capitalization of $810.69 million, a P/E ratio of -21.71 and a beta of 0.84. The company has a debt-to-equity ratio of 0.35, a quick ratio of 5.11 and a current ratio of 2.19. The stock’s 50 day moving average is $36.34.

2U (NASDAQ:TWOU) last announced its quarterly earnings data on Tuesday, July 30th. The software maker reported ($0.43) EPS for the quarter, topping the Zacks’ consensus estimate of ($0.59) by $0.16. 2U had a negative return on equity of 7.63% and a negative net margin of 11.39%. The business had revenue of $135.50 million during the quarter, compared to the consensus estimate of $124.38 million. During the same period in the previous year, the company posted ($0.19) earnings per share. The business’s revenue for the quarter was up 39.1% on a year-over-year basis. On average, equities research analysts expect that 2U will post -1.21 EPS for the current year.

In related news, insider James Kenigsberg sold 7,353 shares of the business’s stock in a transaction that occurred on Friday, July 12th. The stock was sold at an average price of $38.91, for a total transaction of $286,105.23. Following the completion of the sale, the insider now owns 142,341 shares in the company, valued at $5,538,488.31. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Gregory K. Peters bought 12,459 shares of the firm’s stock in a transaction that occurred on Tuesday, May 14th. The shares were acquired at an average price of $40.15 per share, with a total value of $500,228.85. Following the purchase, the director now owns 25,744 shares of the company’s stock, valued at $1,033,621.60. The disclosure for this purchase can be found here. In the last 90 days, insiders have sold 9,155 shares of company stock valued at $356,942. 4.92% of the stock is owned by company insiders.

Hedge funds have recently bought and sold shares of the stock. Daiwa Securities Group Inc. purchased a new stake in 2U in the second quarter valued at approximately $33,000. Meridian Wealth Management LLC purchased a new stake in 2U in the first quarter valued at approximately $50,000. Icon Wealth Partners LLC purchased a new stake in 2U in the first quarter valued at approximately $55,000. BNP Paribas Arbitrage SA lifted its stake in 2U by 27.8% in the second quarter. BNP Paribas Arbitrage SA now owns 1,596 shares of the software maker’s stock valued at $60,000 after buying an additional 347 shares during the last quarter. Finally, NEXT Financial Group Inc lifted its stake in 2U by 39.5% in the second quarter. NEXT Financial Group Inc now owns 1,679 shares of the software maker’s stock valued at $64,000 after buying an additional 475 shares during the last quarter.

2U Company Profile

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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