False Statement Allegations: Stride, Inc. is accused of inflating enrollment figures and failing to disclose compliance requirements during the class period from October 22, 2024, to October 28, 2025, leading to a 54% stock price drop on October 28, 2025, indicating a significant trust crisis in the education services sector.
Deteriorating Customer Experience: On October 28, 2025, Stride admitted that “poor customer experience” resulted in approximately 10,000 to 15,000 student withdrawals, reflecting the company's vulnerability in market competition, which could adversely affect future enrollments and revenue.
Legal Litigation Risks: Stride faces a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, which could result in substantial financial liabilities, further heightening investor concerns regarding the company's governance and financial health.
Compliance Failures: The lawsuit highlights Stride's failure to adhere to federal requirements for employee background checks and special education services, indicating significant shortcomings in compliance management that could impact its long-term operations and market reputation.
LRN
$66.14+Infinity%1D
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 115.50 USD with a low forecast of 82.00 USD and a high forecast of 130.00 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
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 115.50 USD with a low forecast of 82.00 USD and a high forecast of 130.00 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.
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 65.820
Low
82.00
Averages
115.50
High
130.00
Current: 65.820
Low
82.00
Averages
115.50
High
130.00
Morgan Stanley
Greg Parrish
Equal Weight
downgrade
$130 -> $95
2025-12-17
New
Reason
Morgan Stanley
Greg Parrish
Price Target
$130 -> $95
2025-12-17
New
downgrade
Equal Weight
Reason
Morgan Stanley analyst Greg Parrish lowered the firm's price target on Stride to $95 from $130 and keeps an Equal Weight rating on the shares. 2025 marked a shift in Info Services, bifurcating leaders and laggards in the group based on AI, notes the analyst, who assumes AI will continue to be an important theme in 2026 among the group.
BMO Capital
Market Perform
downgrade
$108 -> $82
2025-11-07
Reason
BMO Capital
Price Target
$108 -> $82
2025-11-07
downgrade
Market Perform
Reason
BMO Capital lowered the firm's price target on Stride to $82 from $108 and keeps a Market Perform rating on the shares. The stock sold off on disclosure of a botched platform integration, though the company has not received non-renewal notices from partners on this matter, crediting its goodwill with these organizations, and the management hopes for fixes over the next few months and is optimistic for the upcoming school year, the analyst tells investors in a research note.
Barrington
Outperform
to
NULL
downgrade
$185 -> $125
2025-10-29
Reason
Barrington
Price Target
$185 -> $125
2025-10-29
downgrade
Outperform
to
NULL
Reason
Barrington lowered the firm's price target on Stride to $125 from $185 and keeps an Outperform rating on the shares post the fiscal Q1 report. The company's initial fiscal 2026 outlook came in significantly below expectations, the analyst tells investors in a research note. "The damage has been done" but the shares should find support at current levels based on current estimates, adds Barrington. The firm points out that management believes the worst is behind Stride.
BMO Capital
Outperform -> Market Perform
downgrade
$108
2025-10-29
Reason
BMO Capital
Price Target
$108
2025-10-29
downgrade
Outperform -> Market Perform
Reason
BMO Capital downgraded Stride to Market Perform from Outperform with a $108 price target.
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.
