BlackRock Inc. (Trades, Portfolio), a leading global investment management corporation, recently increased its stake in Grand Canyon Education Inc. (LOPE, Financial). This article provides an in-depth analysis of the transaction, the profiles of both BlackRock Inc. (Trades, Portfolio) and Grand Canyon Education Inc., and the potential implications for value investors.
Details of the Transaction
On July 31, 2023, BlackRock Inc. (Trades, Portfolio) added 77,508 shares of Grand Canyon Education Inc. to its portfolio at a trade price of $108.55 per share. This transaction increased BlackRock's total holdings in the company to 3,079,819 shares, representing 10% of the traded company's stock and a 0.01% position in BlackRock's portfolio. However, the transaction had no significant impact on BlackRock's portfolio.
Profile of BlackRock Inc. (Trades, Portfolio)
Founded in 1988, BlackRock Inc. (Trades, Portfolio) is a renowned investment management corporation operating through a vast network of subsidiaries. The firm's investment philosophy is rooted in risk management, with its platform monitoring about 7% of the world's total financial assets. BlackRock has a significant presence in virtually every financial market globally, with 21 investment centers and 70 offices in 30 countries. The firm's top holdings include Apple Inc., Amazon.com Inc., Alphabet Inc., Microsoft Corp., and NVIDIA Corp. As of the date of this article, BlackRock's equity stands at a staggering $3,388.31 trillion, with the technology and healthcare sectors being its top sectors.
Overview of Grand Canyon Education Inc.
Grand Canyon Education Inc. is a publicly traded education services company primarily serving colleges and universities. The company's most significant university partner is Grand Canyon University, an Arizona non-profit corporation offering graduate and undergraduate degree programs. The company's market capitalization stands at $3.38 billion, with a stock price of $111.53 and a PE percentage of 18.11. The stock is modestly undervalued according to the GF Valuation, with a GF Value of 134.42.
Analysis of Grand Canyon Education Inc.'s Stock
Since the transaction, Grand Canyon Education Inc.'s stock has gained 2.75%. The stock has seen a remarkable 1015.3% increase since its Initial Public Offering (IPO) in 2008 and a 4.45% increase year-to-date. The stock's GF Score is 93/100, indicating a high outperformance potential.
Evaluation of Grand Canyon Education Inc.'s Financial Health
Grand Canyon Education Inc. boasts a strong financial strength with a balance sheet rank of 9/10, a profitability rank of 9/10, and a growth rank of 8/10. The company's interest coverage is 10265.61, and its cash to debt ratio is 2.85. The company's return on equity (ROE) and return on assets (ROA) stand at 30.18 and 22.98, respectively.
Examination of Grand Canyon Education Inc.'s Stock Performance
Over the past three years, Grand Canyon Education Inc. has seen a revenue growth of 20.60%, EBITDA growth of 4.50%, and earning growth of 2.20%. The stock's momentum index for 6 - 1 month is -9.53, while for 12 - 1 month, it is 21.02. The stock's RSI for 5 days, 9 days, and 14 days are 69.62, 68.80, and 66.09, respectively.
Conclusion
In conclusion, BlackRock Inc. (Trades, Portfolio)'s recent acquisition of additional shares in Grand Canyon Education Inc. is a noteworthy transaction for value investors. With a strong financial profile and promising stock performance, Grand Canyon Education Inc. presents an attractive investment opportunity. However, investors should conduct their own due diligence before making investment decisions.
