2U (NASDAQ:TWOU) Coverage Initiated by Analysts at Citigroup

Citigroup initiated coverage on shares of 2U (NASDAQ:TWOU) in a research note released on Thursday, BenzingaRatingsTable reports. The brokerage issued a buy rating and a $20.00 target price on the software maker’s stock.

TWOU has been the subject of a number of other reports. Barrington Research downgraded shares of 2U from an outperform rating to a market perform rating in a research note on Wednesday, July 31st. Credit Suisse Group dropped their target price on shares of 2U from $55.00 to $42.00 and set a neutral rating for the company in a research note on Wednesday, July 31st. TheStreet downgraded shares of 2U from a c- rating to a d rating in a research note on Tuesday, May 21st. KeyCorp initiated coverage on shares of 2U in a research note on Tuesday, July 16th. They issued an overweight rating and a $56.00 target price for the company. Finally, Needham & Company LLC downgraded shares of 2U from a buy rating to a hold rating in a research note on Wednesday, July 31st. Three analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $47.00.

TWOU stock traded up $0.69 during trading on Thursday, hitting $15.16. 2,405,640 shares of the stock traded hands, compared to its average volume of 1,311,564. 2U has a one year low of $11.37 and a one year high of $90.31. The stock has a market cap of $960.16 million, a PE ratio of -24.06 and a beta of 0.83. The stock has a 50 day moving average of $33.59. The company has a debt-to-equity ratio of 0.35, a quick ratio of 2.19 and a current ratio of 2.19.

2U (NASDAQ:TWOU) last announced its quarterly earnings results on Tuesday, July 30th. The software maker reported ($0.43) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.59) by $0.16. 2U had a negative net margin of 11.39% and a negative return on equity of 7.63%. The firm had revenue of $135.50 million during the quarter, compared to the consensus estimate of $124.38 million. During the same period last year, the firm posted ($0.19) EPS. The firm’s quarterly revenue was up 39.1% on a year-over-year basis. As a group, research analysts forecast that 2U will post -2.1 EPS for the current year.

In related news, insider James Kenigsberg sold 7,353 shares of the business’s stock in a transaction that occurred on Friday, July 12th. The shares were sold at an average price of $38.91, for a total transaction of $286,105.23. Following the completion of the sale, the insider now directly owns 142,341 shares of the company’s stock, valued at $5,538,488.31. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Gregory K. Peters purchased 72,358 shares of the company’s stock in a transaction that occurred on Wednesday, August 7th. The shares were acquired at an average cost of $13.95 per share, with a total value of $1,009,394.10. Following the completion of the purchase, the director now owns 98,102 shares of the company’s stock, valued at $1,368,522.90. The disclosure for this purchase can be found here. Insiders own 4.92% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of TWOU. Baillie Gifford & Co. acquired a new position in 2U during the first quarter valued at approximately $101,024,000. ARK Investment Management LLC grew its holdings in 2U by 171.3% during the second quarter. ARK Investment Management LLC now owns 1,403,952 shares of the software maker’s stock valued at $52,845,000 after purchasing an additional 886,408 shares during the period. First Trust Advisors LP grew its holdings in 2U by 53.9% during the second quarter. First Trust Advisors LP now owns 2,524,290 shares of the software maker’s stock valued at $95,014,000 after purchasing an additional 884,527 shares during the period. Frontier Capital Management Co. LLC grew its holdings in 2U by 57.0% during the first quarter. Frontier Capital Management Co. LLC now owns 2,279,721 shares of the software maker’s stock valued at $161,518,000 after purchasing an additional 827,915 shares during the period. Finally, Villere ST Denis J & Co. LLC grew its holdings in 2U by 104.7% during the second quarter. Villere ST Denis J & Co. LLC now owns 1,539,816 shares of the software maker’s stock valued at $57,958,000 after purchasing an additional 787,686 shares during the period.

About 2U

2U, Inc operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting.

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Analyst Recommendations for 2U (NASDAQ:TWOU)

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