Rice Hall James Buys Stride Stock
Key Points
Rice Hall James added 122,430 shares of Stride in the fourth quarter.
The fund's quarter-end Stride position value decreased by approximately $17.7 million, reflecting both share purchase and price movement.
At quarter's end, Rice Hall James held 427,783 shares valued at $27.7 million.
Stride now accounts for 1.5% of the fund’s 13F reportable assets, which places it outside the fund's top five holdings.
Rice Hall James & Associates, LLC disclosed a buy of 122,430 shares of Stride (NYSE:LRN) in the fourth quarter.
What happened
According to a Securities and Exchange Commission (SEC) filing dated Feb. 13, 2026, Rice Hall James & Associates, LLC increased its position in Stride by 122,430 shares. The quarter-end position value for Stride fell by $17.7 million, reflecting both the additional shares and price movements during the period.
What else to know
- This was a buy, bringing the stake to 1.5% of the fund’s 13F reportable assets under management (AUM).
- Top holdings after the filing:
- NASDAQ: LGND: $52.8 million (2.9% of AUM)
- NYSE:ARLO: $50.0 million (2.7% of AUM)
- NASDAQ: FOLD: $49.9 million (2.7% of AUM)
- NYSE:FN: $48.4 million (2.7% of AUM)
- NASDAQ: ESTA: $47.4 million (2.6% of AUM)
- As of Feb. 16, 2026, Stride shares were priced at $84.89, down 39.5% over the past year and underperformed the S&P 500 by 51.2 percentage points.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $3.6 billion |
| Revenue (TTM) | $2.5 billion |
| Net income (TTM) | $318.9 million |
| Price (as of market close 2/16/26) | $84.89 |
Company snapshot
- Stride provides technology-based education services, including proprietary and third-party online curriculum, software systems, and educational solutions for K-12 and adult learners.
- The company generates revenue primarily through contracts with public and private schools and school districts, as well as through direct-to-consumer offerings, delivering both virtual and blended learning solutions and career-focused programs.
- Main customers include public and private educational institutions, charter boards, individual learners, employers, and government agencies in the United States and internationally.
Stride is a leading provider of online and blended education services, leveraging proprietary technology platforms to deliver scalable, individualized learning solutions. The company’s diversified offerings span K-12 education, career readiness, and adult workforce training, positioning it as a comprehensive partner for institutions and learners seeking flexible, high-quality educational experiences. With a broad customer base and a focus on both academic and career outcomes, Stride maintains a competitive edge through its integrated service model and commitment to innovation.
What this transaction means for investors
Rice Hall James holds over 200 stocks, as reported in its 13F. It bought and sold many positions in the quarter, including buying more Stride, a leader in the online education market.
The stock collapsed last year due to difficulties in rolling out platform upgrades. This led to lower engagement and a poor customer experience. However, this problem has largely been fixed.
Temporary speed bumps in a company’s growth can sometimes turn out to be great opportunities to buy shares at discounted prices. During the company’s fourth-quarter earnings call, management reaffirmed its full-year revenue guidance while raising its adjusted operating income guidance. This suggests the market’s negative reaction may have been overdone, potentially undervaluing Stride stock.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Stride. The Motley Fool recommends Arlo Technologies. The Motley Fool has a disclosure policy.