Stride, Inc. Board Under Investigation for Breach of Fiduciary Duties, Stock Plummets 54.4%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Board Investigation: The Law Offices of Frank R. Cruz is investigating whether Stride's board breached fiduciary duties to shareholders, potentially leading to significant investor losses.
- Fraud Allegations: The Gallup-McKinley County Schools Board has accused Stride of fraud and deceptive practices, claiming the company inflated enrollment figures by retaining 'ghost students' to secure state funding, severely damaging its reputation.
- Declining Financial Performance: Stride's Q1 fiscal 2026 report revealed 'system implementation issues' that resulted in 10,000 to 15,000 fewer enrollments, further restricting the company's in-year enrollment growth.
- Stock Price Crash: Following these negative developments, Stride's stock plummeted by $83.48, or 54.4%, closing at $70.05 on October 29, 2025, causing substantial losses for investors.
Analyst Views on LRN
Wall Street analysts forecast LRN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LRN is 106.75 USD with a low forecast of 82.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 71.610
Low
82.00
Averages
106.75
High
125.00
Current: 71.610
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.
