In this article, we discuss the 5 online education stocks to buy. If you want to read our detailed analysis of these stocks, go directly to the 10 Online Education Stocks to Buy.
5. John Wiley & Sons, Inc. (NYSE:JW-A)
Number of Hedge Fund Holders: 14
John Wiley & Sons, Inc. (NYSE:JW-A) is a research and learning company based in New Jersey. It posted earnings for the first fiscal quarter in September, beating market estimates on earnings per share and revenue by $0.14 and $19 million respectively.
John Wiley & Sons, Inc. (NYSE:JW-A) has a decent dividend history and recently declared a quarterly dividend of $0.345 per share, in line with previous. The forward yield was 2.59%. The company has a market cap of close to $3 billion.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Cardinal Capital is a leading shareholder in John Wiley & Sons, Inc. (NYSE:JW-A) with 1.6 million shares worth more than $85 million.
4. 2U, Inc. (NASDAQ:TWOU)
Number of Hedge Fund Holders: 22
2U, Inc. (NASDAQ:TWOU) is an education technology company based in Maryland. Some of the products marketed by the firm include degree programs and alternative credentials. The company offers both undergraduate and graduate degrees.
2U, Inc. (NASDAQ:TWOU) recently posted earnings for the third quarter, beating market estimates on earnings per share by $0.02. The revenue over the period was $232 million, up more than 15% year-on-year.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in 2U, Inc. (NASDAQ:TWOU) with 8.4 million shares worth more than $282 million.
3. Houghton Mifflin Harcourt Company (NASDAQ:HMHC)
Number of Hedge Fund Holders: 27
Houghton Mifflin Harcourt Company (NASDAQ:HMHC) is a learning company headquartered in Boston. The stock has climbed 381% year-to-date as the firm beats market expectations on earnings and invests in growth projects.
BMO Capital analyst Jeffrey Silber recently raised the price target on Houghton Mifflin Harcourt Company (NASDAQ:HMHC) stock to $19 from $15 but kept a Market Perform rating on the shares, noting that the third quarter earnings of the firm were “very strong”.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Engine Capital is a leading shareholder in Houghton Mifflin Harcourt Company (NASDAQ:HMHC) with 3 million shares worth more than $40 million.
In its Q2 2021 investor letter, Laughing Water Capital LP, an asset management firm, highlighted a few stocks and Houghton Mifflin Harcourt Company (NASDAQ:HMHC) was one of them. Here is what the fund said:
“HMHC is the leading provider of instructional materials to students in grades K-12 in the U.S. At the end of this letter you will find a longer writeup, but in brief I believe the combination of a newly cleaned up balance sheet, slimmed down operating structure, a Covid induced acceleration of digital learning, and billions of dollars in federal stimulus set to flood the education world has put HMHC in position to gush cash over the next few years… but the market has failed to appreciate these changes. Given the pending onslaught of federal stimulus dollars I think it will be very difficult to lose money in this investment, and if the company reinvests this cash wisely and the market recognizes how this business has evolved, there is a path to multi-bagger returns looking out a few years.”
2. Perdoceo Education Corporation (NASDAQ:PRDO)
Number of Hedge Fund Holders: 19
Perdoceo Education Corporation (NASDAQ:PRDO) provides online education services. The company is one of the few stocks with more than half of the total market capitalization in net cash and is still trading at relatively cheap prices.
Perdoceo Education Corporation (NASDAQ:PRDO) recently posted earnings for the third quarter, reporting earnings per share of $0.45, beating estimates by $0.07. The revenue over the period was $174 million, beating predictions by $3 million.
At the end of the third quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $89 million in Perdoceo Education Corporation (NASDAQ:PRDO), up from 18 in the preceding quarter worth $99 million.
1. Universal Technical Institute, Inc. (NYSE:UTI)
Number of Hedge Fund Holders: 12
Universal Technical Institute, Inc. (NYSE:UTI) is an education services firm based in Arizona. The company offers professional training courses related to technicians in the automotive, diesel, collision repair, motorcycle, and marine industries.
In earnings results for the fourth fiscal quarter, posted on November 17, Universal Technical Institute, Inc. (NYSE:UTI) reported a revenue of $97 million, up 27% year-on-year and beating market predictions by $1.7 million.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm Park West Asset Management is a leading shareholder in Universal Technical Institute, Inc. (NYSE:UTI) with 3 million shares worth more than $20 million.
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