Kadensa Capital Fully Exits Stride Position Amidst Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy LRN?
Source: Fool
- Position Change: Kadensa Capital sold its entire 157,101-share position in Stride during Q4 2026, with an estimated transaction value of $23.40 million, indicating a significant loss of confidence in the company amid a 29.1% stock decline.
- Performance Impact: Stride's stock has underperformed the S&P 500 by 50 percentage points over the past year, highlighting increasing competitive pressures in the education technology sector that could affect future investment appeal.
- Market Outlook: Despite Kadensa's exit, Stride's recent Q2 earnings report showed an 8% increase in enrollments and resolution of core platform issues, suggesting potential for long-term growth, especially as demand for alternative education solutions rises in the U.S.
- Investor Strategy: With Stride trading at just 10 times forward earnings and management guiding for 6% revenue growth in 2026, investors may consider accumulating shares at current valuations, even as Kadensa's sale reflects short-term risks.
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Analyst Views on LRN
Wall Street analysts forecast LRN stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 85.610
Low
82.00
Averages
106.75
High
125.00
Current: 85.610
Low
82.00
Averages
106.75
High
125.00
About LRN
Stride, Inc. is a technology company providing an educational platform to deliver online learning to students throughout the U.S. It provides a range of services including K-12 education, career learning, professional skills training, and talent development. Its platform hosts products and services to attract, enroll, educate, track progress, and support students. These products and services, spanning curriculum, systems, instruction, and support services, are designed to help learners of all ages reach their full potential through inspired teaching and personalized learning. Its platform addresses two markets in the K-12 space: General Education and Career Learning. Products and services for the General Education market are focused on core subjects for kindergarten through twelfth grade students to help build a common foundation of knowledge. Career Learning products and services are focused on developing skills to enter and succeed in careers in high-growth and in-demand industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Kadensa Capital Fully Exits Stride Position Amidst Stock Decline
- Position Change: Kadensa Capital sold its entire 157,101-share position in Stride during Q4 2026, with an estimated transaction value of $23.40 million, indicating a significant loss of confidence in the company amid a 29.1% stock decline.
- Performance Impact: Stride's stock has underperformed the S&P 500 by 50 percentage points over the past year, highlighting increasing competitive pressures in the education technology sector that could affect future investment appeal.
- Market Outlook: Despite Kadensa's exit, Stride's recent Q2 earnings report showed an 8% increase in enrollments and resolution of core platform issues, suggesting potential for long-term growth, especially as demand for alternative education solutions rises in the U.S.
- Investor Strategy: With Stride trading at just 10 times forward earnings and management guiding for 6% revenue growth in 2026, investors may consider accumulating shares at current valuations, even as Kadensa's sale reflects short-term risks.
See More
Kadensa Capital Fully Exits Stride Position with $23.4 Million Sale
- Complete Exit: Kadensa Capital Ltd sold its entire position in Stride, disposing of 157,101 shares for an estimated $23.4 million, indicating a complete exit from a stake that previously represented 2.4% of its assets under management, reflecting a pessimistic outlook on the stock's future performance.
- Asset Management Impact: The sale resulted in a $23.4 million decrease in Kadensa Capital's reported assets under management, highlighting the market's negative reaction to Stride's stock, which has fallen 29.1% over the past year and underperformed the S&P 500 by 50 percentage points.
- Industry Dynamics: Stride, a technology-driven education solutions provider, faced challenges with platform implementation that led to a drop in new enrollments; however, recent earnings reports indicate an 8% increase in enrollments, suggesting a gradual recovery in market confidence.
- Future Outlook: While Kadensa Capital opted to sell before the stock's decline, analysts believe Stride's current valuation and guidance for 6% revenue growth could present a re-entry opportunity for investors, especially given the low satisfaction rates with the public education system in the U.S.
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- Flexible Learning Environment: Insight School of Kansas also provides opportunities for adult learners to obtain a high school diploma, reflecting the school's inclusivity and flexibility for students of all ages, promoting educational equity.
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- Increased Promotion Rates: Employees who participate in the education program are promoted at a 20% higher rate than their peers, with a 19% increase in retention rates, indicating that investment in employee development directly contributes to loyalty and business objectives.
- Enhanced Corporate Competitiveness: CEO Bijal Shah emphasizes the need for companies to boost productivity in a tight labor market, ensuring that employees can adapt to changes, reflecting a strong commitment to talent development.
- Improved Employee Engagement: By establishing career ladders, employees feel a sense of belonging and engagement within the team, which fosters more communication and collaboration, ultimately driving the achievement of overall business goals.
See More
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- Dream School Ranking: According to a recent survey by The Princeton Review, Harvard University has once again been named the most desirable college, attracting a large number of applicants despite facing lawsuits from the Trump administration and federal funding cuts, with acceptance rates dropping below 4%, indicating its strong brand influence.
- Tuition Pressure: The 2026 College Hopes and Worries survey revealed that over 9,400 students and parents consider tuition costs their biggest stressor, with some schools' annual costs nearing six figures, reflecting a staggering 914% increase in education costs since 1983, outpacing other household expenses.
- Surge in Student Loans: From 2005 to 2025, education debt surged by 343%, with 97% of graduates indicating that their debt has delayed major life goals, highlighting the increasing financial burden of higher education that forces students to borrow to cover tuition costs.
- Importance of Financial Aid: The Princeton Review noted that while many elite schools offer generous financial aid, Harvard does not provide merit-based scholarships, instead offering free tuition for undergraduates from families earning less than $200,000, underscoring the critical role of financial aid in school selection decisions.
See More
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- BrightView Challenges: BrightView (NYSE:BV), serving as an official field consultant for Major League Baseball, has seen a 1.8% annual sales decline over the past two years, leading to a 3.3% annual contraction in earnings per share, indicating management's struggles with effective fund allocation, which negatively impacts long-term returns.
- Stride's Strong Performance: Stride (NYSE:LRN) achieved an impressive 14.6% annual revenue growth over the past five years, reflecting market share gains, while earnings per share surged by 45% annually over the last two years, with management's effective investments driving rising returns on capital; currently trading at $84.36 with a forward P/E of 9.8x.
- IMAX Growth Potential: IMAX (NYSE:IMAX) has experienced a 24.5% annual revenue growth over the past five years, with free cash flow margin increasing by 24.3 percentage points, indicating that historical investments are beginning to pay off, currently priced at $37.85 with a forward P/E of 22.6x.
- Market Dynamics Observation: While BrightView faces market challenges, the strong performances of Stride and IMAX highlight investment opportunities in the education technology and cinema technology sectors, suggesting that investors should pay attention to these companies' growth potential moving forward.
See More
Kadensa Capital Fully Exits Stride Position Amidst Stock Decline
- Position Change: Kadensa Capital sold its entire 157,101-share position in Stride during Q4 2026, with an estimated transaction value of $23.40 million, indicating a significant loss of confidence in the company amid a 29.1% stock decline.
- Performance Impact: Stride's stock has underperformed the S&P 500 by 50 percentage points over the past year, highlighting increasing competitive pressures in the education technology sector that could affect future investment appeal.
- Market Outlook: Despite Kadensa's exit, Stride's recent Q2 earnings report showed an 8% increase in enrollments and resolution of core platform issues, suggesting potential for long-term growth, especially as demand for alternative education solutions rises in the U.S.
- Investor Strategy: With Stride trading at just 10 times forward earnings and management guiding for 6% revenue growth in 2026, investors may consider accumulating shares at current valuations, even as Kadensa's sale reflects short-term risks.
See More
Kadensa Capital Fully Exits Stride Position with $23.4 Million Sale
- Complete Exit: Kadensa Capital Ltd sold its entire position in Stride, disposing of 157,101 shares for an estimated $23.4 million, indicating a complete exit from a stake that previously represented 2.4% of its assets under management, reflecting a pessimistic outlook on the stock's future performance.
- Asset Management Impact: The sale resulted in a $23.4 million decrease in Kadensa Capital's reported assets under management, highlighting the market's negative reaction to Stride's stock, which has fallen 29.1% over the past year and underperformed the S&P 500 by 50 percentage points.
- Industry Dynamics: Stride, a technology-driven education solutions provider, faced challenges with platform implementation that led to a drop in new enrollments; however, recent earnings reports indicate an 8% increase in enrollments, suggesting a gradual recovery in market confidence.
- Future Outlook: While Kadensa Capital opted to sell before the stock's decline, analysts believe Stride's current valuation and guidance for 6% revenue growth could present a re-entry opportunity for investors, especially given the low satisfaction rates with the public education system in the U.S.
See More
Enrollment Opens for Kansas Virtual Public Schools for 2026-2027
- Enrollment Announcement: Insight School of Kansas and Kansas Virtual Academy have opened enrollment for the 2026-2027 school year, providing K-12 online public education to meet the needs of students across the state.
- Diverse Curriculum Offerings: Both schools are taught by state-certified teachers and offer advanced coursework, honors classes, AP courses, and dual enrollment options, ensuring academic support for students pursuing various educational pathways.
- Flexible Learning Environment: Insight School of Kansas also provides opportunities for adult learners to obtain a high school diploma, reflecting the school's inclusivity and flexibility for students of all ages, promoting educational equity.
- Social Engagement Opportunities: Students can participate in clubs, school activities, and in-person events statewide, enhancing the social experience of online learning and helping students build connections in a virtual environment.
See More
