K12 Inc. (NYSE: LRN): The Best-Of-Breed For Investing?


Fuller & Thaler Asset Management,. recently announced the acquisition of new stake in K12 Inc. (NYSE:LRN). This fresh investment now brings its stake to 3.97% valued currently at $44.28 million. In addition, ClearBridge Investments LLC raised its holdings by 2922.0 to 1.05 million shares. And Systematic Financial Management L. has lifted its position by 26.90% or 0.18 million shares – to 0.85 million shares.

With over 6.18 million K12 Inc. (LRN) shares trading Friday and a closing price of $46.60 on the day, the dollar volume was approximately $288.15 million. The shares have shown a positive weekly performance of 37.34% and its price on 07/17/20 lost nearly -2.80%. Currently, there are 39.54M common shares owned by the public and among those 38.02M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for LRN have a consensus price objective of $36.50. The analysts have set the share’s price value over the next 12 months at a high of $52.00 and a low of $30.00 should the stock experience a downside. Incidentally, analysts’ outlook for the K12 Inc. stock is 1.20 for the next 12 months. The average price target is -51.94% below its last price level and a downside to the estimated low will see the stock lose -55.33% over that period. But an upside of 10.38% will see the stock hit the forecast high price target while mean target price for the stock is $32.00.

Insiders at the company have transacted a total of 49 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 11 of these insider trades were purchases, accounting for 205,359 shares. Insider sales of the common stock occurred on 38 occasions, with total insider shares sold totaling 346,448 shares.

The top 3 mutual fund holders in K12 Inc. are Capitol Series Trust – Fuller & T, Vanguard Total Stock Market Index, and DFA US Small Cap Value Portfolio. Capitol Series Trust – Fuller & T owns 1.53 million shares of the company’s stock, all valued at over $41.54 million. Vanguard Total Stock Market Index sold 20411.0 shares to see its total holdings shrink to 1.09 million shares valued at over $29.8 million and representing 2.67% of the shares outstanding. DFA US Small Cap Value Portfolio bought 92447.0 shares to bring its total holdings to over 1.03 million shares at a value of $27.94 million. DFA US Small Cap Value Portfolio now owns shares totaling to 2.50% of the shares outstanding.

Shares of K12 Inc. (NYSE: LRN) opened at $49.88, up $1.94 from a prior closing price of $47.94. However, the script later closed the day at $46.60, down -2.80%. The company’s stock has a 5-day price change of 37.34% and 92.32% over the past three months. LRN shares are trading 128.99% year to date (YTD), with the 12-month market performance up to 49.94% higher. It has a 12-month low price of $15.06 and touched a high of $48.74 over the same period. Currently, 6.18 million shares have been traded, compared to an average intraday trading volume of 852.05K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 48.47%, 70.92%, and 110.98% respectively.

Institutional ownership of K12 Inc. (NYSE: LRN) shares accounts for 87.40% of the company’s 39.54M shares outstanding. Mutual fund holders own 40.71%, while other institutional holders and individual stakeholders account for 46.52% and 38.66% respectively.

It has a market capitalization of $1.97B and a beta (3y monthly) value of 0.41. The stock’s trailing 12-month PE ratio is 82.48, while the earnings-per-share (ttm) stands at $0.57. The company has a PEG of 5.50 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 0.19. Price movements for the stock have been influenced by the stock’s volatility, which stands at 14.49% over the week and 7.77% over the month.

Analysts forecast that K12 Inc. (LRN) will achieve an EPS of $0.03 for the current quarter, -$0.24 for the next quarter and $0.79 for 2021. The lowest estimate earnings-per-share for the quarter is $0.01 while analysts give the company a high EPS estimate of $0.04. Comparatively, EPS for the current quarter was $0.08 a year ago. Earnings per share for the fiscal year are expected to increase by 33.70%, and 51.92% over the next financial year. EPS should grow at an annualized rate of 15.00% over the next five years, compared to 12.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate K12 Inc. (LRN) as a “Strong Buy” at a consensus score of 1.20. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 0 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the LRN, a number of firms have released research notes about the stock. Sidoti stated their Neutral rating for the stock in a research note on July 09, 2020, with the firm’s price target at $34. William Blair coverage for the K12 Inc. (LRN) stock in a research note released on August 12, 2019 offered a Outperform rating with a price target of. Sidoti was of a view on August 07, 2019 that the stock is Buy, while Barrington Research gave the stock Outperform rating on January 23, 2019, issuing a price target of $25- $30. Sidoti on their part issued Neutral rating on January 02, 2019.


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