Frontier Capital Makes Big Bet on Stride, Adds $113 Million in Stock

What happened

According to its SEC filing dated May 15, 2026, Frontier Capital Management increased its position in Stride (NYSE:LRN) by 1,388,589 shares during the first quarter. The estimated trade value was $112.63 million, calculated using the quarter’s average closing share price. At quarter end, the Stride stake was valued at $136.60 million, an increase of $126.17 million from the prior period.

What else to know

Frontier Capital Management bought more Stride, bringing its stake to 1.4% of 13F AUM.

• Top holdings after the filing:
  • FTAI Aviation: $260.24 million (2.7% of AUM)
  • Darling Ingredients: $151.88 million (1.6% of AUM)
  • United Therapeutics: $149.85 million (1.5% of AUM)
  • Circle Internet Group: $147.71 million (1.5% of AUM)
  • Granite Construction: $142.39 million (1.5% of AUM)

As of May 20, 2026, Stride shares were trading at $89.06, down 45.1% over the past year and underperforming the S&P 500 by 70 percentage points.

Company overview

Metric	Value
Price (as of market close May 20, 2026)	$89.06
Market capitalization	$3.79 billion
Revenue (TTM)	$2.54 billion
Net income (TTM)	$308.12 million

Company snapshot

• Stride delivers technology-based educational services and online curriculum for K-12 students, as well as career learning programs for adult learners through brands such as Galvanize, Tech Elevator, and MedCerts.
• The company generates revenue by providing integrated educational platforms, digital courses, and professional development services to public and private schools, school districts, and individual consumers.
• Primary 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 solutions, serving over 7,800 employees and a diverse client base in the education and workforce development sectors. The company leverages proprietary technology and specialized content to deliver scalable, individualized learning experiences across K-12 and adult education markets. Its strategic focus on both core academic and career-oriented programs positions Stride as a differentiated player in the evolving education services industry.

What this transaction means for investors

Frontier Capital Management likes to look for smaller stocks with “relative” value, and its Q1 purchase of Stride certainly fits this strategy. The firm began buying LRN stock in Q3 2024, but the position never exceeded 0.2% of Frontier’s portfolio. Q1’s purchase marks a huge departure from its small sizing after the company added $113 million in Stride stock, making it a 1.4% position -- the firm’s sixth-largest holding.

I think this hefty purchase makes a lot of sense, and I did something similar, buying the stock after it crashed by 50% when management announced that a platform upgrade went wrong and caused the company to miss out on thousands of new registrations. As bad as this was at the time, it seems like Stride has resolved the tech issues, and its registrations have somewhat normalized. Most importantly, management reiterated that it plans to grow sales by 10% annually and to reach $8 in EPS by 2028 -- which would make today’s share price around $89 rather reasonable.

While Stride will have to face the increasingly loud hum of being “disrupted” by AI, I think educational regulations and the need for a “human-in-the-loop” in the learning process give the company a moat. As more parents search for alternatives outside of traditional on-location public schools -- and perhaps seek adult learning classes of their own through Stride -- the company remains one of my favorite consumer staples stocks to buy at a discount today.

Josh Kohn-Lindquist has positions in Circle Internet Group and Stride. The Motley Fool has positions in and recommends Stride and United Therapeutics. The Motley Fool recommends Darling Ingredients and recommends the following options: short July 2026 $55 calls on Darling Ingredients. The Motley Fool has a disclosure policy.