Stride(LRN) Shares Plunge 3.45% on Earnings Miss

Stride(LRN) shares fell 3.45% intraday, marking the lowest level since April 2025, with a 1.45% decline over the past two days, totaling a 1.72% drop in the last two days.

The strategy of buying LRN shares after they reach a recent low and holding for one week resulted in a 276.02% return, significantly outperforming the benchmark return of 56.99% over the past five years. The strategy achieved an excess return of 219.03% and a CAGR of 70.72%, indicating strong growth potential. However, it also had a maximum drawdown of -25.27% and a Sharpe ratio of 1.71, highlighting the strategy's risk-return profile.

Stride's stock has been under pressure recently, with a notable 6% drop on June 4, 2025. This decline was primarily driven by the company missing analysts' consensus estimates for earnings per share (EPS) by $0.07, reporting $2.02 instead of the expected $2.09. Despite a 17.8% increase in revenue, the earnings miss contributed to negative sentiment around the stock.

Technical analysis also suggests that Stride's stock has broken beneath the Bollinger Bands midline, indicating that bearish sentiment may be influencing the stock's movement. This technical indicator, combined with the recent earnings miss, has likely contributed to the overall decline in Stride's stock price.