Zacks Investment Research Lowers Adtalem Global Education (NYSE:ATGE) to Sell

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Zacks Investment Research downgraded shares of Adtalem Global Education (NYSE:ATGE) from a hold rating to a sell rating in a research note issued to investors on Wednesday morning, Zacks.com reports. The brokerage currently has $44.00 price objective on the stock.

According to Zacks, “Adtalem reported better-than-expected fourth-quarter fiscal 2019 results. Both the top and bottom lines not only topped the Zacks Consensus Estimate but also improved year over year, backed by strong demand, employer partnerships and superior student outcomes. Enrollments also grew from the year-ago period. Notably, Adtalem has undertaken initiatives for achieving strong multi-year organic growth. Also, its cost-saving moves, transformation strategy and continued focus on stackable programs that are aligned with key growth areas are adding to the bliss. Yet, improving employment situation is hampering the prospects of for-profit education companies. Shares of Adtalem have witnessed a sharp decline so far this year. Estimates have been trending downward over the past 30 days, depicting concerns over the stock’s earnings prospects.”

A number of other research analysts have also issued reports on the stock. Sidoti began coverage on shares of Adtalem Global Education in a research note on Thursday, September 12th. They set a buy rating on the stock. Barrington Research set a $58.00 price target on shares of Adtalem Global Education and gave the stock a buy rating in a research note on Friday, August 23rd. Finally, BMO Capital Markets boosted their price target on shares of Adtalem Global Education from $50.00 to $55.00 and gave the stock an outperform rating in a research note on Friday, August 23rd. One research analyst has rated the stock with a sell rating, two have issued a hold rating and four have assigned a buy rating to the stock. The company has a consensus rating of Hold and an average target price of $54.80.

Shares of NYSE:ATGE opened at $40.66 on Wednesday. The company has a 50-day simple moving average of $44.79 and a 200-day simple moving average of $45.96. Adtalem Global Education has a one year low of $40.06 and a one year high of $58.80. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.62 and a current ratio of 1.62. The stock has a market capitalization of $2.32 billion, a price-to-earnings ratio of 14.42, a PEG ratio of 1.11 and a beta of 0.90.

Adtalem Global Education (NYSE:ATGE) last announced its earnings results on Thursday, August 22nd. The company reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.01. Adtalem Global Education had a net margin of 7.68% and a return on equity of 11.81%. The business had revenue of $330.30 million during the quarter, compared to analysts’ expectations of $329.90 million. During the same period in the prior year, the company earned $0.86 earnings per share. The business’s revenue was up 3.3% compared to the same quarter last year. As a group, research analysts forecast that Adtalem Global Education will post 3.05 EPS for the current fiscal year.

In other news, insider Patrick J. Unzicker sold 2,297 shares of the business’s stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $45.40, for a total transaction of $104,283.80. Following the transaction, the insider now directly owns 32,908 shares in the company, valued at $1,494,023.20. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 1.91% of the company’s stock.

Institutional investors have recently modified their holdings of the company. Great Lakes Advisors LLC grew its position in Adtalem Global Education by 0.4% during the second quarter. Great Lakes Advisors LLC now owns 78,749 shares of the company’s stock worth $3,548,000 after buying an additional 281 shares during the period. Oregon Public Employees Retirement Fund grew its position in Adtalem Global Education by 1.4% during the second quarter. Oregon Public Employees Retirement Fund now owns 24,067 shares of the company’s stock worth $1,084,000 after buying an additional 330 shares during the period. Swiss National Bank grew its position in Adtalem Global Education by 0.4% during the second quarter. Swiss National Bank now owns 107,500 shares of the company’s stock worth $4,843,000 after buying an additional 400 shares during the period. Verition Fund Management LLC grew its position in Adtalem Global Education by 6.4% during the second quarter. Verition Fund Management LLC now owns 7,420 shares of the company’s stock worth $334,000 after buying an additional 444 shares during the period. Finally, Marshall Wace North America L.P. acquired a new position in Adtalem Global Education during the first quarter worth about $56,000. Institutional investors and hedge funds own 98.40% of the company’s stock.

About Adtalem Global Education

Adtalem Global Education Inc provides educational services worldwide. It operates through three segments: Medical and Healthcare, Professional Education, and Technology and Business. The Medical and Healthcare segment operates Chamberlain University, which provides a pre-licensure bachelor's degree in nursing at 21 campus locations and post-licensure bachelor's, master's, and doctorate degree programs in nursing through its online platform; and operates medical and veterinary schools, including American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine.

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