Adtalem Global Education (NYSE:ATGE) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research has downgraded Adtalem Global Education's stock from a "strong-buy" to a "hold" rating.
• The company has reported a 1.66 earnings per share for the recent quarter, exceeding analyst expectations, and anticipates full-year earnings of 7.600-7.900 EPS for FY 2026.
• Adtalem Global Education's Board has authorized a stock buyback program worth $150 million, allowing the repurchase of up to 3.6% of its shares, signaling potential management confidence in the stock's valuation.

Adtalem Global Education (NYSE:ATGE - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday, August 19th,Zacks.com reports.

A number of other analysts have also weighed in on ATGE. Barrington Research increased their price objective on Adtalem Global Education from $140.00 to $150.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. BMO Capital Markets increased their price objective on Adtalem Global Education from $115.00 to $132.00 and gave the company an "outperform" rating in a research note on Monday, May 12th. Finally, Jefferies Financial Group initiated coverage on Adtalem Global Education in a research note on Wednesday, April 23rd. They set a "buy" rating and a $135.00 price objective for the company. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, Adtalem Global Education presently has an average rating of "Moderate Buy" and a consensus target price of $139.00.

Adtalem Global Education Trading Up 1.0%

Shares of NYSE:ATGE traded up $1.31 during trading on Tuesday, reaching $136.64. 108,707 shares of the company traded hands, compared to its average volume of 468,572. The firm has a market capitalization of $4.91 billion, a price-to-earnings ratio of 22.07, a P/E/G ratio of 1.17 and a beta of 0.88. Adtalem Global Education has a 52-week low of $68.60 and a 52-week high of $140.12. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.39. The business's fifty day moving average is $121.84 and its 200-day moving average is $114.22.

Adtalem Global Education (NYSE:ATGE - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $1.66 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.15. The firm had revenue of $457.11 million during the quarter, compared to analyst estimates of $440.93 million. Adtalem Global Education had a return on equity of 17.95% and a net margin of 13.26%.The business's quarterly revenue was up 11.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.37 earnings per share. Adtalem Global Education has set its FY 2026 guidance at 7.600-7.900 EPS. As a group, analysts forecast that Adtalem Global Education will post 6.2 EPS for the current year.

Adtalem Global Education declared that its board has authorized a share buyback plan on Tuesday, May 6th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 3.6% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Adtalem Global Education

In other news, Director Lisa W. Wardell sold 12,900 shares of Adtalem Global Education stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $132.90, for a total transaction of $1,714,410.00. Following the transaction, the director directly owned 92,477 shares of the company's stock, valued at $12,290,193.30. The trade was a 12.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director William W. Burke sold 2,291 shares of Adtalem Global Education stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $128.35, for a total value of $294,049.85. Following the transaction, the director directly owned 9,368 shares in the company, valued at approximately $1,202,382.80. The trade was a 19.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Sachetta LLC purchased a new position in Adtalem Global Education in the 2nd quarter worth approximately $25,000. Penserra Capital Management LLC purchased a new position in Adtalem Global Education in the 2nd quarter worth approximately $28,000. Fifth Third Bancorp lifted its holdings in Adtalem Global Education by 56.8% in the 1st quarter. Fifth Third Bancorp now owns 287 shares of the company's stock worth $29,000 after purchasing an additional 104 shares in the last quarter. Financial Management Professionals Inc. purchased a new position in Adtalem Global Education in the 1st quarter worth approximately $31,000. Finally, Allworth Financial LP lifted its holdings in Adtalem Global Education by 82.9% in the 2nd quarter. Allworth Financial LP now owns 342 shares of the company's stock worth $44,000 after purchasing an additional 155 shares in the last quarter. 98.84% of the stock is owned by hedge funds and other institutional investors.

About Adtalem Global Education

Adtalem Global Education Inc provides workforce solutions worldwide. It operates through three segments, Chamberlain, Walden, and Medical and Veterinary. The Chamberlain segment offers degree and non-degree programs in the nursing and health professions postsecondary education industry. This segment operates Chamberlain University.