2U Inc (TWOU) Shares Plummet Below 1-Year High

The stock price of 2U Inc (NASDAQ: TWOU) has dropped by -10.23 compared to previous close of 0.28. Despite this, the company has seen a fall of -14.98% in its stock price over the last five trading days. prnewswire.com reported 2024-06-10 that LANHAM, Md., June 10, 2024 /PRNewswire/ — 2U, Inc. (Nasdaq: TWOU), a leading online education platform company, today announced that it will proceed with a 1-for-30 reverse stock split (“Reverse Stock Split”) of its outstanding shares of common stock (the “Common Stock”) following approval by its Board of Directors.

Is It Worth Investing in 2U Inc (NASDAQ: TWOU) Right Now?

Moreover, the 36-month beta value for TWOU is 0.85. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 6 as “overweight,” 0 as “hold,” and 0 as “sell.”

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The public float for TWOU is 77.66M and currently, short sellers hold a 12.62% of that float. On June 11, 2024, TWOU’s average trading volume was 1.81M shares.

TWOU’s Market Performance

The stock of 2U Inc (TWOU) has seen a -14.98% decrease in the past week, with a -18.21% drop in the past month, and a -32.35% fall in the past quarter. The volatility ratio for the week is 7.43%, and the volatility levels for the past 30 days are at 10.44% for TWOU. The simple moving average for the past 20 days is -18.38% for TWOU’s stock, with a -78.09% simple moving average for the past 200 days.

Analysts’ Opinion of TWOU

Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see TWOU reach a price target of $1.50, previously predicting the price at $5.30. The rating they have provided for TWOU stocks is “Neutral” according to the report published on November 10th, 2023.

TWOU Trading at -18.51% from the 50-Day Moving Average

After a stumble in the market that brought TWOU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -94.73% of loss for the given period.

Volatility was left at 10.44%, however, over the last 30 days, the volatility rate increased by 7.43%, as shares sank -28.60% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -37.92% lower at present.

During the last 5 trading sessions, TWOU fell by -14.85%, which changed the moving average for the period of 200-days by -91.75% in comparison to the 20-day moving average, which settled at $0.3058. In addition, 2U Inc saw -79.37% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at TWOU starting from McCullough Aaron, who purchase 51,565 shares at the price of $0.99 back on Dec 12 ’23. After this action, McCullough Aaron now owns 400,089 shares of 2U Inc, valued at $50,895 using the latest closing price.

Macias Edward S., the Director of 2U Inc, sale 2,300 shares at $1.00 during a trade that took place back on Dec 06 ’23, which means that Macias Edward S. is holding 87,299 shares at $2,300 based on the most recent closing price.

Stock Fundamentals for TWOU

Current profitability levels for the company are sitting at:

  • -0.17 for the present operating margin
  • 0.7 for the gross margin

The net margin for 2U Inc stands at -0.35. The total capital return value is set at -0.13. Equity return is now at value -101.30, with -20.15 for asset returns.

Based on 2U Inc (TWOU), the company’s capital structure generated 0.84 points at debt to capital in total, while cash flow to debt ratio is standing at 0.05. The debt to equity ratio resting at 5.42. The interest coverage ratio of the stock is -4.04.

Currently, EBITDA for the company is 126.32 million with net debt to EBITDA at 12.52. When we switch over and look at the enterprise to sales, we see a ratio of 0.97. The receivables turnover for the company is 9.91for trailing twelve months and the total asset turnover is 0.63. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.91.

Conclusion

To wrap up, the performance of 2U Inc (TWOU) has been bad in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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