Stride Inc. (LRN:NYSE) is an online and private education company that has hit several major milestones in states across the U.S. in the month of February.
The company announced in a press release that it had opened enrollment for the 2024 to 2025 school year at its online private school program, Coast to Mountains Preparatory Academy (CM Prep), focused in North Carolina. The company provides in-person and online education to students in grades K through 12, and CM Prep provides financial assistance to accommodate students with special education needs.
Vicky Creasy, the Executive Director of CM Prep, commented, "Our mission is to inspire a community of future leaders through a student-centric instructional approach, empowering students to shape their path while pursuing their passion."
The company previously announced, on February 8, 2024, that its Indiana Digital Learning School had received support from the NCAA for its core curriculum to support student-athletes. The curriculum's approval by the NCAA means that INDLS meets the organization's standards and can now provide courses from the NCAA to students. The NCAA's scholarship program makes approximately US$3.5 million available to support student-athletes every year and is a major resource for students looking to pursue a sports career.
Lastly, the Michigan Association of Intermediate School Advisors (MAISA) named Stride Tutoring as a pre-approved, qualified vendor, which will open up the possibility for the program to receive support from the 23g MI Kids Back on Track Grant Program. The grant program, intended to combat the negative effects that the pandemic had on children's education, has a budget of US150 million for tutoring.
Jennifer Moore, the General Manager at Stride Tutoring, commented, "We are honored to be named as a qualified vendor for Michigan school districts to continue to meet the needs of their students . . . As districts and communities continue to rebound from COVID-19 learning loss, our team of certified teacher tutors is excited to support students across Michigan."
Bouncing Back from Lockdowns
Grand View Research believes that the market size for online tutoring was US$7.69 million in 2022 and is expected to grow by 14.9% every year until 2030. Major drivers of demand for online learning are the adoption of smart technology and the flexibility that it allows students and educators. Demand for online learning exploded during the pandemic as education suddenly required remote communication technology and adaptability in order to remain viable.
Fortune Business Insights estimates that the global tutoring market was worth US$54.21 million in 2022 and expects it to hit US$105.98 billion by 2030.
The report identified two major factors at play in this enormous rise in tutoring: increasing emphasis on the importance of education and the after-effects of school closures during the pandemic. As parents grew concerned about the effects of the lockdown on children's education, they turned to companies like Stride Learning.
A Future of Growth
Cory Mitchell with Forbes Advisor included Stride, Inc., in a list of ten small-cap stocks he recommends this month. The report stated that it expects a five-year average yearly sales growth of 14.7%, an earnings per share (EPS) growth of 20.0%, and outperformed the S&P 500 by 7.5%.
Yahoo Finance also highlighted Stride as a solid investment with a good financial foundation, with a total revenue last year of US$1.8 billion. The report stated that Stride's revenue had grown by 11% in 2022.
On February 12, Stock Traders Daily wrote that Stride was strong in both the near and long term.
Streetwise Ownership Overview*Ownership and Share Structure
Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 2.49% of the company, as Director Nathaniel A. Davis holds 1.08 million shares.
Refinitiv reports that institutions own approximately 47.79% of the company. According to Refinitiv, BlackRock Institutional Trust Company, N.A., owns 13.37% of the company with 5.80 million shares, The Vanguard Group, Inc., owns 11.44% of the company with 4.96 million shares, Dimensional Fund Advisors, L.P. owns 6.89% of the company with 2.99 million shares, Morgan Stanley & Co. L.L.C. owns 3.44% of the company with 1.49 million shares, State Street Global Advisors (U.S.) owns 3.30% of the company with 1.43 million shares, Janus Henderson Investors owns 2.76% of the company with 1.20 million shares, Invesco Advisors, Inc. owns 2.49% of the company with 1.08 million shares, Rice Hall James & Associates, L.L.C. owns 2.18% of the company with 0.95 million shares, and Geode Capital Management, L.L.C. owns 1.92% of the company with 0.83 million shares.
There are 43.37 million shares outstanding with 41.07 million free float traded shares, reports Refinitiv, while the company has a market cap of CA$2,676.13 million and trades in the 52-week period between CA$35.61 and CA$69.70.
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