Traders Buy High Volume of 2U Call Options (NASDAQ:TWOU)

2U Inc (NASDAQ:TWOU) was the recipient of some unusual options trading on Thursday. Investors purchased 4,995 call options on the company. This is an increase of 310% compared to the average daily volume of 1,218 call options.

A number of analysts have weighed in on TWOU shares. Needham & Company LLC raised 2U from a “hold” rating to a “buy” rating and set a $25.00 price objective for the company in a research report on Wednesday. Citigroup increased their price objective on 2U from $20.00 to $28.00 and gave the stock a “buy” rating in a research report on Tuesday, January 7th. Zacks Investment Research cut 2U from a “buy” rating to a “hold” rating in a research report on Wednesday, February 12th. BidaskClub cut 2U from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, March 18th. Finally, BMO Capital Markets raised 2U from a “market perform” rating to an “outperform” rating and increased their price objective for the stock from $26.00 to $33.00 in a research report on Monday, March 16th. Nine equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. 2U presently has a consensus rating of “Hold” and a consensus price target of $36.92.

Shares of TWOU stock traded up $2.62 during trading hours on Thursday, reaching $21.16. 1,500,617 shares of the company’s stock were exchanged, compared to its average volume of 1,738,280. The company has a market cap of $1.20 billion, a P/E ratio of -5.63 and a beta of 0.32. The company’s 50 day moving average is $23.45 and its two-hundred day moving average is $21.24. 2U has a 1 year low of $11.37 and a 1 year high of $74.25. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.67 and a quick ratio of 1.67.

2U (NASDAQ:TWOU) last issued its earnings results on Thursday, February 6th. The software maker reported ($0.18) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.50) by $0.32. The business had revenue of $163.18 million during the quarter, compared to the consensus estimate of $161.40 million. 2U had a negative return on equity of 16.45% and a negative net margin of 40.93%. The company’s revenue for the quarter was up 41.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.23 EPS. As a group, analysts predict that 2U will post -2.34 EPS for the current fiscal year.

In other 2U news, CTO James Kenigsberg sold 3,856 shares of the stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $30.00, for a total transaction of $115,680.00. Following the completion of the sale, the chief technology officer now directly owns 172,906 shares of the company’s stock, valued at approximately $5,187,180. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 4.92% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. purchased a new position in 2U in the 4th quarter valued at approximately $2,783,000. Samalin Investment Counsel LLC acquired a new stake in 2U during the 4th quarter valued at $32,000. FNY Investment Advisers LLC acquired a new stake in 2U during the 4th quarter valued at $38,000. Advisory Services Network LLC boosted its holdings in shares of 2U by 1,767.0% during the fourth quarter. Advisory Services Network LLC now owns 1,867 shares of the software maker’s stock worth $44,000 after purchasing an additional 1,767 shares during the last quarter. Finally, CFM Wealth Partners LLC acquired a new stake in shares of 2U during the fourth quarter worth $41,000.

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.

Further Reading: Cost of Equity

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