StockNews.com Begins Analyzing 2U Inc with a 'Hold' Rating

StockNews.com has recently commenced coverage on 2U (NASDAQ:TWOU), bestowing the online education platform provider's stock with a 'hold' rating. The analytical note was disseminated to investors last Saturday, marking the beginning of the firm's engagement with 2U's market performance.

Market Analysts Weigh In on 2U

A number of other equity research analysts have also provided their insights on 2U's stock, contributing to the company's current ratings landscape. Citigroup maintained a 'neutral' stance on 2U's shares in a statement released on November 13th. On a less optimistic note, Morgan Stanley adjusted their price objective for 2U's shares, lowering it from $2.00 to $1.00, while maintaining an 'equal weight' rating. This report was issued on February 13th.

In a similar vein, Cantor Fitzgerald shifted their rating from 'overweight' to 'neutral', also revising their price target for 2U from $5.30 down to $1.50, as reported on November 10th. Piper Sandler followed suit by adjusting their price target down from $4.00 to $1.70 and reaffirming a 'neutral' rating on November 13th. Meanwhile, Barrington Research downgraded 2U from an 'outperform' rating to a 'market perform' status, further indicating a change in perspective.

Presently, based on accumulative ratings from nine analysts who advocate holding the stock and one suggestion to buy, the company holds an average rating of 'Hold' and a consensus target price of $4.31, according to data compiled by MarketBeat.com.

2U's Financial Performance and Institutional Interest

The trading price for 2U began at $0.42 on the Friday before the analysts' note was published. The company's stock has fluctuated between a 52-week low of $0.32 and a high of $9.68. With a market capitalization of roughly $34.85 million and bearing a P/E ratio of -0.11, the company's financial footing is quantifiable. Moreover, 2U sports a debt-to-equity ratio of 3.42, alongside liquor ratios of 0.74 for both quick and current assessments of its financial health. Its 50-day and 200-day moving averages stand at $0.74 and $1.57, respectively.

In its latest earnings report, the company disclosed a quarterly earnings per share (EPS) of $0.43, falling short of the anticipated $0.50 by $0.07. The company's revenue for the same quarter was reported at $255.66 million, not quite reaching analyst expectations of $275.84 million. Looking ahead, analysts predict that 2U will deliver an earnings per share total of -$0.25 for the current fiscal year.

On the heels of this financial data, several significant investors have changed their stakes in 2U. Notable movements include Price T Rowe Associates Inc. MD increasing its 2U shareholding by 52.1%, Barclays PLC enhancing its stake by 66.7%, and Bridgeway Capital Management LLC initiating a new position. Charles Schwab Investment Management Inc. expanded its investment by 15.1%. In sum, institutional investors possess 90.55% of 2U's shares.

About 2U Inc

2U Inc operates as a trailblazer in the sector of online education, offering their technology and services for not-for-profit colleges and universities to deliver degree programs via the web. The company distinguishes itself with two business segments, Degree Program and Alternative Credential, catering to the evolving educational landscape within the United States and abroad.

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