Peregrine Exits Entire Position in Adtalem Global Education
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Position Change: Peregrine Asset Advisers, Inc. fully exited its position in Adtalem Global Education in Q4 by selling 69,012 shares for an estimated $10.66 million, indicating a strategic shift in their investment focus.
- Financial Performance: Despite Adtalem's strong fiscal Q2 results, with revenue rising 12.4% year-over-year to $503 million and adjusted EPS increasing 34% to $2.43, Peregrine's exit may reflect a decision based on opportunity costs rather than business weakness.
- Market Reaction: As of January 30, Adtalem's shares were priced at $103.55, down about 1% over the past year, suggesting that while the company maintains solid performance, its competitive position in the education services market may be under pressure.
- Investment Strategy: Peregrine's portfolio is heavily weighted towards large-cap technology and index-based strategies, indicating a cautious stance towards mid-cap education services like Adtalem, which may not meet their growth expectations amid broader market trends.
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Analyst Views on ATGE
Wall Street analysts forecast ATGE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ATGE is 163.67 USD with a low forecast of 158.00 USD and a high forecast of 170.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 103.550
Low
158.00
Averages
163.67
High
170.00
Current: 103.550
Low
158.00
Averages
163.67
High
170.00
About ATGE
Adtalem Global Education Inc. is a provider of healthcare education in the United States, preparing a diverse workforce with academic programs. Its healthcare programs include nursing, medicine, veterinary medicine, social and behavioral sciences and more. Its segments include Chamberlain, Walden, and Medical and Veterinary. Chamberlain segment offers degree and certificate programs in the nursing and health professions postsecondary education industry. Walden segment offers degree and certificate programs, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. Medical and Veterinary segment offers degree and certificate programs in the medical and veterinary postsecondary education industry. This segment includes American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Peregrine Exits Entire Position in Adtalem Global Education
- Position Change: Peregrine Asset Advisers, Inc. fully exited its position in Adtalem Global Education in Q4 by selling 69,012 shares for an estimated $10.66 million, indicating a strategic shift in their investment focus.
- Financial Performance: Despite Adtalem's strong fiscal Q2 results, with revenue rising 12.4% year-over-year to $503 million and adjusted EPS increasing 34% to $2.43, Peregrine's exit may reflect a decision based on opportunity costs rather than business weakness.
- Market Reaction: As of January 30, Adtalem's shares were priced at $103.55, down about 1% over the past year, suggesting that while the company maintains solid performance, its competitive position in the education services market may be under pressure.
- Investment Strategy: Peregrine's portfolio is heavily weighted towards large-cap technology and index-based strategies, indicating a cautious stance towards mid-cap education services like Adtalem, which may not meet their growth expectations amid broader market trends.
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Adtalem Global Education Q2 Earnings Highlights
- Enrollment Growth: Adtalem reported total enrollment exceeding 97,000 students in Q2, reflecting over 6% growth year-over-year, with Walden achieving 52,400 students, indicating strong performance and competitive advantage in the education market.
- Significant Financial Performance: The company reported Q2 revenue of $503.4 million, a 12.4% increase, with adjusted EBITDA reaching $154.9 million and an EBITDA margin of 30.8%, showcasing ongoing improvements in operational efficiency and profitability.
- Raised EPS Guidance: Adtalem raised its adjusted EPS guidance from $7.60-$7.90 to $7.80-$8.00, targeting a growth rate of 17%-20%, reflecting confidence in future financial performance and sustained profitability.
- Strategic Investments and Market Expansion: The company plans to present a multi-year growth framework at the upcoming Investor Day, including capacity expansion plans and new revenue streams, further solidifying its market position in the education sector.
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