Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis for ATGE stock:

Technical Analysis:

The stock is showing mixed signals:

• Currently trading at $49.14, down from recent highs of $50.97
• RSI-14 at 51.62 indicates neutral momentum
• MACD shows bearish divergence with -0.91 histogram value
• Trading below its 20-day moving average of $104.38

Fundamental Strengths:

• Strong Q2 FY25 performance with revenue growth of 13.9% YoY
• Total student enrollment increased 11.6% to 91,264
• Operating income rose 77% to $103.87 million
• Management raised FY25 guidance:
  • Revenue: $1.73B-$1.76B (up from $1.69B-$1.73B)
  • Adjusted EPS: $6.10-$6.30 (up from $5.75-$5.95)

Recent Analyst Actions:

• Barrington raised PT to $120 from $115, maintaining Outperform rating
• Analysts expect continued strong demand for healthcare professionals

Risk Factors:

• Historical tepid revenue growth rate of 9.6% CAGR over 5 years
• Below-average ROIC of 8.8% compared to sector peers
• Projected revenue growth slowdown to 3.9% over next 12 months

Recommendation: SELL

Given the current technical weakness and valuation concerns, despite strong recent quarterly results, it would be prudent to take profits at current levels. The stock appears to be losing momentum after a significant run-up, and forward growth projections suggest limited upside potential in the near term.

Based on the provided data and recent developments, here's the price prediction for ATGE stock in 2025:

Price Target Analysis:

ATGE is expected to reach $119.67 by end of 2025, representing a potential upside of approximately 17% from current levels. This target is supported by:

Key Growth Drivers:

1. Strong Q2 FY25 Performance:

• Revenue growth of 13.9% year-on-year to $447.73 million
• Total student enrollment increased 11.6% to 91,264
• Operating margin expanded to 23.2%

2. Raised FY25 Guidance:

• Adjusted EPS outlook increased from $5.75-$5.95 to $6.10-$6.30
• Revenue guidance raised from $1.69-$1.73 billion to $1.73-$1.76 billion

Price Prediction: Based on the strong fundamentals and positive momentum:

• Base case: $119-120 (aligned with analyst consensus)
• Bull case: $124 (Baird's upgraded target)
• Bear case: $70 (lowest analyst target)

The most likely scenario is the base case ($119-120) given:

• Six consecutive quarters of enrollment growth
• Successful operational excellence strategy implementation
• Strong cash position ($195.4 million as of December 2024)
• Ongoing share repurchase program with $140 million remaining

The S1 support level for ATGE Stock is $96.36 ,The R1 resistant level for ATGE Stock is $105.97.

As of the end of day on 2025-03-03, the price of ATGE Stock was $99.85.

The target price for ATGE Stock according to analyst rating is 119.67, with the highest price target at 124.00 and the lowest at 115.00. Analysts have a Strong Buy rating on ATGE Stock overall.

The market cap of ATGE is $3.7B.

Based on the current valuation metrics and recent performance, ATGE is trading at reasonable levels with a forward P/E of 15.4x and EV/EBITDA of 6.01x, which are below industry averages. The company recently raised its FY25 guidance after reporting strong Q2 results with 13.9% revenue growth and significant enrollment increases of 11.6%. Technical indicators show the stock is trading near its middle Bollinger Band with an RSI of 51.62, suggesting neutral momentum rather than overbought conditions. Multiple analysts have recently raised their price targets, with Barrington setting $120 and Baird setting $124, indicating potential upside from current levels around $102 [3, 4].

Adtalem Global Education Inc. is a provider of professional talent to the healthcare industry. The Company operates through three segments: Chamberlain, Walden, and Medical and Veterinary. Chamberlain segment offers degree and non-degree programs in the nursing and health professions postsecondary education industry. This segment includes the operations of Chamberlain University (Chamberlain). Walden segment offers more than 100 online certificate, bachelor’s, master’s, and doctoral degrees, 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 non-degree programs in the medical and veterinary postsecondary education industry. This segment includes the operations of the American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine.

Based on the available data and analysis, here is the 2030 price prediction for ATGE stock:

ATGE stock is projected to reach $175-185 by 2030, representing a 71-81% increase from current levels, driven by sustained healthcare education enrollment growth and operational efficiency improvements.

The company's recent strong performance, including 11.6% enrollment growth and raised FY25 guidance to $6.10-6.30 EPS, establishes a solid foundation for long-term expansion in the healthcare education market.

The stock's technical indicators and analyst consensus price targets suggest a steady upward trajectory, with current price-to-earnings ratio of 19.94x providing room for multiple expansion as the company executes its "Growth with Purpose" strategy.

ATGE has a total of 4368 employees.