On Friday, shares of 2U, Inc. (NASDAQ:TWOU) marked $37.62 per share versus a previous $35.30 closing price. With having a 6.57% gain, an insight into the fundamental values of 2U, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. TWOU showed a rise of 56.82% within its YTD performance, with highs and lows between $11.51 – $49.46 during the period of 52 weeks, compared to the simple moving average of 20.12% in the period of the last 200 days.
Credit Suisse equity researchers changed the status of 2U, Inc. (NASDAQ: TWOU) shares from “Neutral” to a “Outperform” rating in the report published on July 31st, 2020. Other analysts, including Jefferies, also published their reports on TWOU shares. Jefferies repeated the rating from the previous report, marking TWOU under “Buy” rating, in the report published on July 16th, 2020. Additionally, TWOU shares got another “Sector Weight” rating from KeyBanc Capital Markets. On May 22nd, 2020, Piper Sandler Initiated an Overweight rating and increased its price target to $42. On the other hand, Needham Reiterated the “Buy” rating for TWOU shares, as published in the report on May 21st, 2020. Berenberg seems to be going bullish on the price of TWOU shares, based on the price prediction for TWOU, indicating that the shares will jump to $30, giving the shares “Buy” rating based on their report from May 5th, 2020. Another “Outperform” rating came from Robert W. Baird, providing a prediction for $30 price target according to the report published in May 4th, 2020.
[bold-text]2U, Inc. (TWOU) Analysis[/bold-text]
The present dividend yield for TWOU owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. In addition, the growth of sales from quarter to quarter is recording 34.80%, hinting the company’s progress in the upcoming progress.
In order to gain a clear insight on the performance of 2U, Inc. (TWOU) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -44.90% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 1.50 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.
Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while TWOU is currently recording an average of 1.44M in volumes. The volatility of the stock on monthly basis is set at 5.04%, while the weekly volatility levels are marked at 5.67%with 5.67% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $49.92, indicating growth from the present price of $37.62, which can represent yet another valuable research and analysis points that can help you decide whether to invest in TWOU or pass.
[bold-text]What to Look for When Analyzing 2U, Inc. Shares?[/bold-text]
2U, Inc. (TWOU) is based in the USA and it represents one of the well-known company operating with Consumer Defensive sector. If you wish to compare TWOU shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for 2U, Inc., while the value can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -4.91 is supported by the yearly EPS growth of -458.10%.
Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 2.30%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 99.50% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.
[bold-text]Are Institutional Investors Increasing Stakes in TWOU Shares?[/bold-text]
It appears that more than several institutional investors and hedge funds decided to increase stakes in TWOU in the recent period. That is how ARK Investment Management LLC now has an increase position in TWOU by 42.39% in the first quarter, owning 9.62 million shares of TWOU stocks, with the value of $325.87 million after the purchase of an additional 2,865,194 shares during the last quarter. In the meanwhile, ArrowMark Colorado Holdings LLC also increased their stake in TWOU shares changed 0.72% in the first quarter, which means that the company now owns 5.8 million shares of company, all valued at $196.42 million after the acquisition of additional 41,224 shares during the last quarter.
Nikko Asset Management Americas, acquired a new position in 2U, Inc. during the first quarter, with the value of $183.21 million, and Wellington Management Co. LLP increased their stake in the company’s shares by 195.79% in the first quarter, now owning 2,751,524 shares valued at $140.75 million after the acquisition of the additional 4.16 million shares during the last quarter. In the end, D. E. Shaw & Co. LP increased their position by 6.41% during the first quarter, now owning 2.68 million TWOU shares, now holding the value of $90.86 million in TWOU with the purchase of the additional 46,915 shares during the period of the last quarter. At the present, 99.50% of TWOU shares are in the ownership of institutional investors.