2U Inc. (NASDAQ:TWOU) shares traded lower over the last trading session, losing -1.38% on 05/28/21. The shares fell to a low of $36.29 before closing at $36.42. Intraday shares traded counted 0.63 million, which was 56.73% higher than its 30-day average trading volume of 1.46M. TWOU’s previous close was $36.93 while the outstanding shares total 73.68M. The firm has a beta of 0.98. The stock’s Relative Strength Index (RSI) is 45.53, with weekly volatility at 3.34% and ATR at 1.95. The TWOU stock’s 52-week price range has touched low of $28.45 and a $59.74 high.
Investors have identified the Education & Training Services company 2U Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.75 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
2U Inc. (TWOU) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 637.57 million total, with 275.2 million as their total liabilities.
TWOU were able to record 6.79 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -13.81 million. In cash movements, the company had a total of 7.63 million as operating cash flow.
Potential earnings growth for 2U Inc. (TWOU)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, 2U Inc. recorded a total of 232.47 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 24.52% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 7.39%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 33.18 million trying to sell their products during the last quarter, with the result yielding a gross income of 199.29 million. This allows shareholders to hold on to 73.68M with the recently reported earning now reading -0.62 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (-0.46 cents a share).
Having a look at the company’s valuation, the company is expected to record -1.49 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TWOU sounds very interesting.
Is the stock of TWOU attractive?
In related news, Chief Technology Officer, Kenigsberg James sold 41,042 shares of the company’s stock in a transaction that recorded on Feb 04. The sale was performed at an average price of 47.00, for a total value of 1,928,974. As the sale deal closes, the Chief Operating Officer, CHERNIS MARK now sold 20,500 shares of the company’s stock, valued at 895,400. Also, Chief Legal Officer, Norden Matthew J. sold 3,750 shares of the company’s stock in a deal that was recorded on Jan 11. The shares were price at an average price of 43.33 per share, with a total market value of 162,488. Following this completion of acquisition, the Chief Technology Officer, Kenigsberg James now holds 33,900 shares of the company’s stock, valued at 1,593,300. In the last 6 months, insiders have changed their ownership in shares of company stock by 3.40%.
8 out of 13 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on 2U Inc.. 0 analysts has assigned a Sell rating on the TWOU stock. The 12-month mean consensus price target for the company’s shares has been set at $58.05.