LRN Should I Buy
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Stride Inc (LRN) is not a strong buy at this moment for a beginner, long-term investor with $50,000-$100,000 available for investment. While the company shows modest financial growth and has a positive long-term outlook in Career Learning, the lack of strong technical signals, neutral trading sentiment, and recent negative news sentiment make it a hold rather than a buy.
The MACD is positive and contracting, indicating a potential weakening of bullish momentum. RSI is neutral at 49.864, showing no clear overbought or oversold conditions. Moving averages are converging, suggesting a lack of strong directional trend. Key support lies at 83.41, while resistance is at 89.679. The stock is trading near its support level, but there is no strong indication of a breakout.
The company's Career Learning segment is performing well, offsetting weaker General Education trends. Financials show YoY growth in revenue (7.50%), net income (3.20%), and EPS (4.43%).
Recent news of an investigation into potential breaches of fiduciary duties by the Board of Directors could impact investor confidence. Analysts have mixed views, with one lowering the price target and another raising it but maintaining a neutral rating. Technical indicators and trading trends are neutral, with no significant hedge fund or insider activity.
In Q2 2026, Stride Inc reported revenue of $631.26M (up 7.50% YoY), net income of $99.48M (up 3.20% YoY), EPS of 2.12 (up 4.43% YoY), and gross margin of 41.13% (up 0.69% YoY). While growth is positive, it is modest and not indicative of a strong buy opportunity.
Analysts are neutral on the stock. BMO Capital raised the price target to $94 from $75 but noted that the results were boosted by a one-time gain. Morgan Stanley lowered the price target to $95 from $130, citing a shift in Info Services and the importance of AI in the sector.
