Strayer Education Inc. (NASDAQ: STRA) Director J. David Wargo bought 60,000 shares of STRA common stock at $45.91 per share, according to a SEC filing made earlier this week. Wargo’s total investment was worth $2.75 million.
STRA shares finished marginally higher in Thursday’s trading session. The stock rose to an intra-day high of $48.66 before finishing the day 0.66% higher at $47.81.
STRA shares have a 52-week high of $120. Year-to-date, the stock has fallen 50.75%.
Wargo’s purchase came a few days after STRA reported its third-quarter financial results. For the three-month period ended September 30, 2012, STRA reported revenue of $124.3 million, down from $135.9 million reported for the same period in the previous year. The drop in revenue was mainly due to lower enrollment.
STRA’s income from operations for the quarter was $7.8 million, down from $24.4 million reported for the same period in the previous year. The company’s operating income margin for the quarter was jut 6.3%, down from 18% reported in the same period in the previous year.
STRA reported third-quarter net income of $4.1 million, compared to $13.9 million reported for the same period in the previous year. The company’s diluted earnings per share for the quarter were $0.36, compared to $1.20 reported for the same period in the previous year.
Enrollment at Strayer University for the 2012 fall term fell 5% to 51,727. Across the Strayer University campus and online system, new student enrollment rose 4%, while continuing student enrollments fell 7%. Global online students rose 13%.
For the fourth quarter of 2012, the company expects diluted earnings per share to be between $1.43 and $1.45. For the full year, diluted earnings per share are expected to be between $5.73 and $5.75.
STRA also announced last week that it entered into an amended and restated revolving credit and term loan agreement.