Grand Canyon Education (LOPE) shares plummeted 8.35% in early trading on Thursday, despite the company meeting earnings expectations for the third quarter. The sharp decline comes as BMO Capital Markets lowered its target price for the stock, signaling potential concerns about the company's future prospects.

The educational services provider reported adjusted earnings of $1.78 per share for the quarter ended September 30, exactly in line with analysts' expectations. Revenue rose 9.6% to $261.14 million, slightly exceeding the forecast of $259.97 million. Despite meeting or beating these key financial metrics, investors appeared to focus on other factors driving the stock lower.

One potential reason for the sell-off could be BMO Capital Markets' decision to cut its target price for Grand Canyon Education from $245 to $221. While the new target still represents significant upside from current levels, the reduction may have sparked concerns among investors about the company's growth trajectory. Additionally, the market might be reacting to other aspects of the earnings report or guidance that were not explicitly mentioned in the available news. The sharp decline suggests that investors may be reassessing the company's valuation or future prospects despite its solid quarterly performance.