K12 (LRN) Lifted to Buy at Zacks Investment Research

K12 (NYSE:LRN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The brokerage currently has a $27.00 target price on the stock. Zacks Investment Research‘s target price points to a potential upside of 9.27% from the stock’s current price.

According to Zacks, “K12 Inc., a technology-based education company, is a leading national provider of proprietary curriculum and educational services created for online delivery to students in kindergarten through 12th grade, or K-12. Its mission is to maximize a child’s potential by providing access to an engaging and effective education, regardless of geographic location or socio-economic background. “

A number of other research firms also recently commented on LRN. Sidoti assumed coverage on K12 in a report on Wednesday, January 2nd. They issued a “neutral” rating and a $29.00 price objective on the stock. Barrington Research restated an “outperform” rating and issued a $25.00 price objective (up from $22.00) on shares of K12 in a report on Wednesday, October 24th. ValuEngine upgraded K12 from a “hold” rating to a “buy” rating in a report on Wednesday, October 24th. Finally, BMO Capital Markets raised their price objective on K12 from $19.00 to $21.00 and gave the stock an “outperform” rating in a report on Wednesday, October 24th. One research analyst has rated the stock with a hold rating and four have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average price target of $25.50.

Shares of K12 stock traded down $0.23 during trading hours on Wednesday, reaching $24.71. The stock had a trading volume of 129,003 shares, compared to its average volume of 306,060. The company has a market cap of $1.01 billion, a price-to-earnings ratio of 36.34, a price-to-earnings-growth ratio of 2.19 and a beta of -0.14. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.06 and a quick ratio of 2.95. K12 has a 1 year low of $12.72 and a 1 year high of $25.78.

K12 (NYSE:LRN) last released its quarterly earnings data on Tuesday, October 23rd. The company reported ($0.22) EPS for the quarter, topping analysts’ consensus estimates of ($0.33) by $0.11. The company had revenue of $251.30 million for the quarter, compared to the consensus estimate of $226.82 million. K12 had a return on equity of 4.67% and a net margin of 2.91%. The company’s quarterly revenue was up 9.8% compared to the same quarter last year. During the same period last year, the business posted ($0.21) EPS. Research analysts anticipate that K12 will post 0.76 EPS for the current year.

In related news, insider Kevin Chavous sold 7,000 shares of the firm’s stock in a transaction dated Friday, October 26th. The stock was sold at an average price of $21.99, for a total transaction of $153,930.00. Following the sale, the insider now directly owns 91,440 shares in the company, valued at approximately $2,010,765.60. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Chairman Nathaniel A. Davis sold 60,000 shares of the firm’s stock in a transaction dated Wednesday, October 24th. The shares were sold at an average price of $20.71, for a total value of $1,242,600.00. Following the sale, the chairman now owns 414,778 shares in the company, valued at $8,590,052.38. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 167,000 shares of company stock worth $3,801,530. Company insiders own 7.00% of the company’s stock.

Large investors have recently made changes to their positions in the stock. First Trust Advisors LP grew its stake in K12 by 17.3% during the 2nd quarter. First Trust Advisors LP now owns 43,858 shares of the company’s stock valued at $718,000 after purchasing an additional 6,465 shares in the last quarter. Schwab Charles Investment Management Inc. grew its stake in K12 by 27.7% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 550,449 shares of the company’s stock valued at $9,011,000 after purchasing an additional 119,495 shares in the last quarter. BlackRock Inc. grew its stake in K12 by 5.0% during the 2nd quarter. BlackRock Inc. now owns 2,622,835 shares of the company’s stock valued at $42,937,000 after purchasing an additional 125,028 shares in the last quarter. Janus Henderson Group PLC grew its stake in K12 by 0.3% during the 2nd quarter. Janus Henderson Group PLC now owns 1,220,693 shares of the company’s stock valued at $19,983,000 after purchasing an additional 3,180 shares in the last quarter. Finally, Federated Investors Inc. PA grew its stake in K12 by 65.2% during the 2nd quarter. Federated Investors Inc. PA now owns 194,605 shares of the company’s stock valued at $3,186,000 after purchasing an additional 76,808 shares in the last quarter. Institutional investors and hedge funds own 81.77% of the company’s stock.

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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