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Strayer Education Director Buys 60,000 Shares (STRA)

Strayer Education Inc. (NASDAQ: STRA) Director J. David Wargo bought 60,000 shares of STRA common stock at $45.91 per share, according to a SEC filing made earlier this week. Wargo’s total investment was worth $2.75 million.

STRA shares finished marginally higher in Thursday’s trading session. The stock rose to an intra-day high of $48.66 before finishing the day 0.66% higher at $47.81.

STRA shares have a 52-week high of $120. Year-to-date, the stock has fallen 50.75%.

Wargo’s purchase came a few days after STRA reported its third-quarter financial results. For the three-month period ended September 30, 2012, STRA reported revenue of $124.3 million, down from $135.9 million reported for the same period in the previous year. The drop in revenue was mainly due to lower enrollment.

STRA’s income from operations for the quarter was $7.8 million, down from $24.4 million reported for the same period in the previous year. The company’s operating income margin for the quarter was jut 6.3%, down from 18% reported in the same period in the previous year.

STRA reported third-quarter net income of $4.1 million, compared to $13.9 million reported for the same period in the previous year. The company’s diluted earnings per share for the quarter were $0.36, compared to $1.20 reported for the same period in the previous year.

Enrollment at Strayer University for the 2012 fall term fell 5% to 51,727. Across the Strayer University campus and online system, new student enrollment rose 4%, while continuing student enrollments fell 7%. Global online students rose 13%.

For the fourth quarter of 2012, the company expects diluted earnings per share to be between $1.43 and $1.45. For the full year, diluted earnings per share are expected to be between $5.73 and $5.75.

STRA also announced last week that it entered into an amended and restated revolving credit and term loan agreement.


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All stories in are for informational purposes only. This is NOT a stock recommendation. This story is a daily light analysis featuring a stock with insider buying. With some caveats, insiders purchase a stock because they think the stock is going up. There are other factors to consider such as size of the transaction relative to their compensation and net worth. Sometimes, insiders might be propping a stock price up for future financing. Sometimes, the amount of insider buying are misread or misreported. Each month, DailyStocks releases a a summary of the stocks with insider buying. Sign up for the free monthly newsletter at . About is the place where you can find stories about stocks with insider buying, where you can educate yourself about stock market investing, and where you can perform the stock search engine analysis – you enter a stock symbol, and you get a resulting page of stock ticker indexed links so that you do not have to type the stock symbol each time.