K12 (LRN) Stock Rating Upgraded by Zacks Investment Research

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

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. “

LRN has been the topic of a number of other research reports. ValuEngine raised K12 from a “hold” rating to a “buy” rating in a report on Wednesday, October 24th. Barrington Research reaffirmed an “outperform” rating and set a $25.00 price objective (up previously from $22.00) on shares of K12 in a report on Wednesday, October 24th. BMO Capital Markets upped 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. Finally, Sidoti started coverage on K12 in a report on Wednesday, January 2nd. They set a “neutral” rating and a $29.00 price objective on the stock. One equities research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $25.50.

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

K12 (NYSE:LRN) last released its quarterly earnings results on Tuesday, October 23rd. The company reported ($0.22) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.33) by $0.11. K12 had a return on equity of 4.67% and a net margin of 2.91%. The business had revenue of $251.30 million during the quarter, compared to analysts’ expectations of $226.82 million. During the same quarter in the prior year, the business earned ($0.21) earnings per share. The company’s quarterly revenue was up 9.8% compared to the same quarter last year. As a group, equities research analysts anticipate that K12 will post 0.76 EPS for the current year.

In other K12 news, Chairman Nathaniel A. Davis sold 60,000 shares of the company’s stock in a transaction on Wednesday, October 24th. The stock was 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 of the company’s stock, valued at $8,590,052.38. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Kevin Chavous sold 7,000 shares of the company’s stock in a transaction on Friday, October 26th. The shares were sold at an average price of $21.99, for a total value of $153,930.00. Following the completion of the sale, the insider now directly owns 91,440 shares in the company, valued at approximately $2,010,765.60. The disclosure for this sale can be found here. Insiders have sold 167,000 shares of company stock worth $3,801,530 in the last ninety days. 7.00% of the stock is currently owned by corporate insiders.

Institutional investors have recently bought and sold shares of the business. One Wealth Advisors LLC acquired a new stake in K12 in the third quarter valued at $159,000. Trexquant Investment LP acquired a new stake in K12 in the third quarter valued at $180,000. Ibex Investors LLC acquired a new stake in K12 in the third quarter valued at $206,000. Jefferies Group LLC acquired a new stake in K12 in the third quarter valued at $244,000. Finally, Paloma Partners Management Co acquired a new stake in K12 in the second quarter valued at $249,000. 81.77% of the stock is currently owned by institutional investors.

About K12

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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