Technicals Say 2U Inc. (TWOU) Is A Hold

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2U Inc. (NASDAQ:TWOU) finished Wednesday with a subtraction of -$0.39 to close at $6.32, a downside of -5.81 percent. An average of 1,180,980 shares of common stock have been traded in the last five days. There was a fall of -$1.55 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 1,124,925 shares traded, while the 50-day average volume stands at 1,135,736.

TWOU stock has decreased by -15.51% in the last month. The company shares reached their 1-month lowest point of $6.30 on 09/21/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $6.68 and a high of $35.73 in 52 weeks. It has reached a new high 1 time so far this year and lost -68.51% or -$13.75 in price. In spite of this, the price is down -82.31% from the 52-week high.


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Insider Transactions

295 days have passed since 2U Inc. (TWOU) last reported insider trading activity. Maybank Alexis, who is Director, most recently acquired $4,300 shares at $24.01 per share on Dec 01. In this transaction, the insider spent $103,243. Chief Technology Officer, Kenigsberg James, disposed of 55,897 shares at a price of $34.24 on Oct 14. The insider now owns more than $1,913,913 worth of shares.

Valuation Metrics

2U Inc. (TWOU) stock’s beta is 1.01. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.54, the price-to-book (PB) ratio at 0.80, and the price-to-cash flow ratio at 2615.22.

Financial Health

The quick ratio of 2U Inc. for the three months ended June 29 was 1.00, and the current ratio was 1.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.53 and a total debt to equity ratio of 1.53 for the quarter ending June 29. Its gross profit as reported stood at $807.13 million compared to revenue of $945.68 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, 2U Inc.’s return on assets was -15.30%.

Earnings Surprise

For the three-month period that ended June 29, 2U Inc. had $927.75 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$62.85 million in the quarter, while revenues of -$125.78 million were grew 65.27%. The analyst consensus anticipated 2U Inc.’s latest quarter earnings to come in at -$0.19 per share, but it turned out to be -$0.1, a 47.40% surprise. For the quarter, EBITDA amounted to -$16.64 million. Shareholders own equity worth $77.48 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at 2U Inc. (TWOU) price momentum. RSI 9-day as of the close on 21 September was 29.30%, suggesting the stock is oversold, with historical volatility in this time frame at 96.78%.

As of today, TWOU’s price is $7.12 -19.70% or -$1.55 from its 5-day moving average. TWOU is currently trading -14.71% lower than its 20-day SMA and -39.81% lower than its 100-day SMA. However, the stock’s current price level is -44.46% below the SMA50 and -70.37% below the SMA200.

The stochastic %K and %D were 8.94% and 29.78%, respectively, and the average true range (ATR) was 0.52. With the 14-day stochastic at 1.04% and the average true range at 0.54, the RSI (14) stands at 33.73%. The stock has reached -0.74 on the 9-day MACD Oscillator while the 14-day reading was at -0.70.

Analyst Ratings

Macquarie downgraded 2U Inc. (NASDAQ: TWOU) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for 2U Inc. (TWOU) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell TWOU, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 5 others rate it as a “buy”.

What is TWOU’s price target for the next 12 months?

Analysts predict a range of price targets between $8.00 and $20.00, with a median target of $14.00. Taking a look at these predictions, the average price target given by analysts for 2U Inc. (TWOU) stock is $14.14.

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