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Capella Education Rallies to a 52-Week High on Innovation
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On Dec 21, shares of Capella Education Company rallied to a 52-week high of $90.40. The stock pulled back to end the trading session at $89.10. The online post-secondary education services company has a market cap of around $1.03 billion and has seen its shares rise roughly 93% so far this year as against a 28.3% increase for the Zacks categorized Schools industry over the same period.
What’s Driving Capella?
Capella University’s programs offer a high-quality educational experience, which drives strong outcomes. The company continuously invests in new programs and specialization to improve student outcome.
Also, continuous innovation and course updates expand its product portfolio, which in turn boost enrollments and long-term growth. The company is focusing on providing programs based on a “competency-based learning model and direct assessment capabilities”, like FlexPath and RightSkill.
The company’s focus on non-degree programs is encouraging and should boost the top line over the long haul. Capella expects the Hackbright Academy and DevMountain acquisitions to contribute to revenues in the near term. The company will continue to invest in 2017 to cash in on opportunities in the job-ready skills market.
Among the investor-friendly moves, Capella recently announced a 5.1% hike in its quarterly cash dividend to 41 cents per share. The dividend will be paid on Jan 13, 2017, to shareholders of record as on Dec 22, 2016. This increase marks Capella Education’s third consecutive year of dividend hike. Consistent dividend hikes serve as an indicator of a company’s financial stability and also its substantial profitability, as dividends are paid out of its retained earnings.
Moreover, the U.S. presidential election had a positive impact on the school industry as shares of for-profit education companies like Strayer Education, Inc. (STRA - Free Report) , DeVry Education Group Inc. (DV - Free Report) and Universal Technical Institute, Inc. (UTI - Free Report) have rallied since the victory of Donald Trump. This is largely because Trump had assured relaxed federal regulations for such companies during his campaigns.
Also, Capella’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 10.9%. The company expects revenues and enrollments to increase in the fourth quarter and has also raised its earnings per share guidance for 2016.
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Capella Education Rallies to a 52-Week High on Innovation
On Dec 21, shares of Capella Education Company rallied to a 52-week high of $90.40. The stock pulled back to end the trading session at $89.10. The online post-secondary education services company has a market cap of around $1.03 billion and has seen its shares rise roughly 93% so far this year as against a 28.3% increase for the Zacks categorized Schools industry over the same period.
What’s Driving Capella?
Capella University’s programs offer a high-quality educational experience, which drives strong outcomes. The company continuously invests in new programs and specialization to improve student outcome.
Also, continuous innovation and course updates expand its product portfolio, which in turn boost enrollments and long-term growth. The company is focusing on providing programs based on a “competency-based learning model and direct assessment capabilities”, like FlexPath and RightSkill.
The company’s focus on non-degree programs is encouraging and should boost the top line over the long haul. Capella expects the Hackbright Academy and DevMountain acquisitions to contribute to revenues in the near term. The company will continue to invest in 2017 to cash in on opportunities in the job-ready skills market.
Among the investor-friendly moves, Capella recently announced a 5.1% hike in its quarterly cash dividend to 41 cents per share. The dividend will be paid on Jan 13, 2017, to shareholders of record as on Dec 22, 2016. This increase marks Capella Education’s third consecutive year of dividend hike. Consistent dividend hikes serve as an indicator of a company’s financial stability and also its substantial profitability, as dividends are paid out of its retained earnings.
Moreover, the U.S. presidential election had a positive impact on the school industry as shares of for-profit education companies like Strayer Education, Inc. (STRA - Free Report) , DeVry Education Group Inc. (DV - Free Report) and Universal Technical Institute, Inc. (UTI - Free Report) have rallied since the victory of Donald Trump. This is largely because Trump had assured relaxed federal regulations for such companies during his campaigns.
Notably, this Zacks Rank #2 (Buy) company’s earnings estimates for the current year have moved up 5.3% over the last 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, Capella’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 10.9%. The company expects revenues and enrollments to increase in the fourth quarter and has also raised its earnings per share guidance for 2016.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>