2U Inc. [NASDAQ: TWOU] opened at $27.51 and closed at $27.77 a share within trading session on 05/06/20. That means that the stock dropped by -1.31% compared to the closing price from a day before, when the stock touched $27.41.
Between the start and the closing of the latest trading session, 2U Inc. [NASDAQ: TWOU] had 1.26 million shares being bought and sold. In the last three months, average trading volumes hovered around 1.78M shares. During the last week, volatility in the share price was set at 6.70%, which placed the metric for the last 30 days at 7.24%. The price of the stock additionally went down to 11.37 during that period and TWOU managed to take a rebound to 62.21 in the last 52 weeks.
2U Inc. [NASDAQ:TWOU]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to 2U Inc. [TWOU], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of 3/30/2020. On average, stock market experts give TWOU an Overweight rating. The average 12-month price forecast for this stock is $27.41, with the high estimate being $41.00, the low estimate being $22.00 and the median estimate amounting to $30.00. This is compared to its latest closing price of $27.77.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for 2U Inc. [TWOU] is sitting at 4.30. This is compared to 1 month ago, when its average rating was 3.90.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on 07/30/2020.
Fundamental Analysis of 2U Inc. [TWOU]
Now let’s turn to look at profitability: with a current Operating Margin for 2U Inc. [TWOU] sitting at -44.00% and its Gross Margin at 49.40%, this company’s Net Margin is now -43.60. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -20.27, and its Return on Invested Capital has reached -27.14. Its Return on Equity is -37.00%, and its Return on Assets is -22.30%. These metrics suggest that this 2U Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, 2U Inc. [TWOU] has generated a Total Debt to Total Equity ratio of 45.12. Similarly, its Total Debt to Total Capital is 31.09, while its Total Debt to Total Assets stands at 27.04. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 44.09, and its Long-Term Debt to Total Capital is 30.38.
What about valuation? This company’s Enterprise Value to EBITDA is -15.54. The Enterprise Value to Sales for this firm is now 2.64, and its Total Debt to Enterprise Value stands at 0.20. 2U Inc. [TWOU] has a Price to Book Ratio of 2.14.
2U Inc. [TWOU] has 63.73M shares outstanding, amounting to a total market cap of 1.77B. Its stock price has been found in the range of 11.37 to 62.21. At its current price, it has moved down by -55.94% from its 52-week high, and it has moved up 141.07% from its 52-week low.
This stock’s Beta value is currently 0.55, which indicates that it is 6.70% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.86. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is 2U Inc. [TWOU] a Reliable Buy?
2U Inc. [TWOU] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.