2u Inc Stock Buy Hold or Sell Recommendation
| TWOU Stock | USD 0.25 0.01 4.17% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding 2U Inc is 'Strong Sell'. Macroaxis provides 2U buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding 2U positions. The advice algorithm takes into account all of 2U's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting 2U's buy or sell advice are summarized below:
Real Value 2.1 | Target Price 7.67 | Hype Value 0.3 | Market Value 0.25 | Naive Value 0.22 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell 2U Inc given historical horizon and risk tolerance towards 2U. When Macroaxis issues a 'buy' or 'sell' recommendation for 2U Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
2U |
Execute 2U Buy or Sell Advice
The 2U recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on 2U Inc. Macroaxis does not own or have any residual interests in 2U Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute 2U's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Extremely Dangerous | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
2U Trading Alerts and Improvement Suggestions
| 2U Inc generated a negative expected return over the last 90 days | |
| 2U Inc has high historical volatility and very poor performance | |
| 2U Inc has some characteristics of a very speculative penny stock | |
| 2U Inc has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 945.95 M. Net Loss for the year was (317.61 M) with profit before overhead, payroll, taxes, and interest of 685.4 M. | |
| 2U Inc currently holds about 220.81 M in cash with (3.43 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.85, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| 2U Inc has a frail financial position based on the latest SEC disclosures | |
| Roughly 69.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: 2U, Inc. Announces Date for 2024 First Quarter Earnings Report |
2U Returns Distribution Density
The distribution of 2U's historical returns is an attempt to chart the uncertainty of 2U's future price movements. The chart of the probability distribution of 2U daily returns describes the distribution of returns around its average expected value. We use 2U Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of 2U returns is essential to provide solid investment advice for 2U.
| Mean Return | -1.11 | Value At Risk | -13.51 | Potential Upside | 16.46 | Standard Deviation | 11.16 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of 2U historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
2U Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as 2U is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading 2U Inc backward and forwards among themselves. 2U's institutional investor refers to the entity that pools money to purchase 2U's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | State Street Corporation | 2023-12-31 | 1.6 M | Bnp Paribas Arbitrage, Sa | 2023-12-31 | 1.3 M | Blantyre Capital Ltd | 2023-12-31 | 1.2 M | Citadel Advisors Llc | 2023-09-30 | 989.9 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 962.4 K | Goldman Sachs Group Inc | 2023-12-31 | 952.8 K | Renaissance Technologies Corp | 2023-12-31 | 840.2 K | Mirae Asset Global Investments (korea) Co Ltd | 2023-12-31 | 836.3 K | Acadian Asset Management Llc | 2023-12-31 | 786.9 K | Ark Investment Management Llc | 2023-12-31 | 9.6 M | Blackrock Inc | 2023-12-31 | 6.8 M |
2U Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (17.1M) | (11.3M) | (21.2M) | (1.0) | (0.9) | (0.94) | |
| Change In Cash | (259.9M) | 329.0M | (269.0M) | (67.3M) | (109.2M) | (103.7M) | |
| Free Cash Flow | (130.3M) | (39.7M) | (88.4M) | (63.3M) | (53.5M) | (56.1M) | |
| Depreciation | 69.8M | 96.5M | 108.4M | 128.2M | 119M | 125.0M | |
| Other Non Cash Items | 13.7M | 32.9M | 51.7M | 202.8M | 188.8M | 198.3M | |
| Capital Expenditures | 78.3M | 69.3M | 70.3M | 74.2M | 50.0M | 45.5M | |
| Net Income | (235.2M) | (216.5M) | (194.8M) | (322.2M) | (317.6M) | (301.7M) | |
| End Period Cash Flow | 189.9M | 518.9M | 249.9M | 182.6M | 73.4M | 69.7M | |
| Change Receivables | 11.9M | (17.9M) | (58.8M) | (3.6M) | (3.2M) | (3.4M) | |
| Net Borrowings | 242.8M | 114.9M | 565.1M | (6.5M) | (7.5M) | (7.1M) | |
| Change To Netincome | 125.3M | 116.1M | 130.8M | 253.3M | 291.3M | 305.9M | |
| Investments | 15M | (69.3M) | 37.8M | (69.4M) | (49.8M) | (52.3M) |
2U Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to 2U or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that 2U's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a 2U stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -1.68 | |
β | Beta against NYSE Composite | 7.31 | |
σ | Overall volatility | 11.27 | |
Ir | Information ratio | -0.11 |
2U Volatility Alert
2U Inc is displaying above-average volatility over the selected time horizon. 2U Inc is a potential penny stock. Although 2U may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in 2U Inc. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on 2U instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.2U Fundamentals Vs Peers
Comparing 2U's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze 2U's direct or indirect competition across all of the common fundamentals between 2U and the related equities. This way, we can detect undervalued stocks with similar characteristics as 2U or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of 2U's fundamental indicators could also be used in its relative valuation, which is a method of valuing 2U by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare 2U to competition |
| Fundamentals | 2U | Peer Average |
| Return On Equity | -0.88 | -0.31 |
| Return On Asset | 0.0061 | -0.14 |
| Profit Margin | (0.34) % | (1.27) % |
| Operating Margin | 0.23 % | (5.51) % |
| Current Valuation | 963.41 M | 16.62 B |
| Shares Outstanding | 83.64 M | 571.82 M |
| Shares Owned By Insiders | 4.91 % | 10.09 % |
| Shares Owned By Institutions | 69.13 % | 39.21 % |
| Number Of Shares Shorted | 12.09 M | 4.71 M |
| Price To Earning | (122.56) X | 28.72 X |
| Price To Book | 0.13 X | 9.51 X |
| Price To Sales | 0.03 X | 11.42 X |
| Revenue | 945.95 M | 9.43 B |
| Gross Profit | 685.4 M | 27.38 B |
| EBITDA | 126.32 M | 3.9 B |
| Net Income | (317.61 M) | 570.98 M |
| Cash And Equivalents | 220.81 M | 2.7 B |
| Cash Per Share | 2.85 X | 5.01 X |
| Total Debt | 994.97 M | 5.32 B |
| Debt To Equity | 1.72 % | 48.70 % |
| Current Ratio | 1.04 X | 2.16 X |
| Book Value Per Share | 2.66 X | 1.93 K |
| Cash Flow From Operations | (3.43 M) | 971.22 M |
| Short Ratio | 6.71 X | 4.00 X |
| Earnings Per Share | (3.93) X | 3.12 X |
| Price To Earnings To Growth | 0.47 X | 4.89 X |
| Target Price | 1.13 | |
| Number Of Employees | 2.96 K | 18.84 K |
| Beta | 0.85 | -0.15 |
| Market Capitalization | 20.91 M | 19.03 B |
| Total Asset | 1.47 B | 29.47 B |
| Retained Earnings | (1.5 B) | 9.33 B |
| Working Capital | (7.88 M) | 1.48 B |
Note: Disposition of 5376 shares by Andrew Hermalyn of 2U at 0. subject to Rule 16b-3 [view details]
2U Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as 2U . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About 2U Buy or Sell Advice
When is the right time to buy or sell 2U Inc? Buying financial instruments such as 2U Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 62.6M | 64.9M | 116.7M | 122.6M | Total Assets | 2.1B | 1.8B | 1.5B | 923.0M |
Use Investing Ideas to Build Portfolios
In addition to having 2U in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Shipbuilding Railroad Equipment Thematic Idea Now
Shipbuilding Railroad Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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Check out 2U Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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When running 2U's price analysis, check to measure 2U's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy 2U is operating at the current time. Most of 2U's value examination focuses on studying past and present price action to predict the probability of 2U's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 2U's price. Additionally, you may evaluate how the addition of 2U to your portfolios can decrease your overall portfolio volatility.
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Is 2U's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of 2U. If investors know 2U will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about 2U listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.93) | Revenue Per Share 11.694 | Quarterly Revenue Growth 0.083 | Return On Assets 0.0061 | Return On Equity (0.88) |
The market value of 2U Inc is measured differently than its book value, which is the value of 2U that is recorded on the company's balance sheet. Investors also form their own opinion of 2U's value that differs from its market value or its book value, called intrinsic value, which is 2U's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because 2U's market value can be influenced by many factors that don't directly affect 2U's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between 2U's value and its price as these two are different measures arrived at by different means. Investors typically determine if 2U is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 2U's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.