Adtalem Global Education (NYSE:ATGE) Rating Lowered to "Hold" at 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 equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Other equities analysts also recently issued research reports about the company. Barrington Research lifted their price objective on Adtalem Global Education from $140.00 to $150.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. BMO Capital Markets lifted their price objective on Adtalem Global Education from $115.00 to $132.00 and gave the stock an "outperform" rating in a research report on Monday, May 12th. Finally, Jefferies Financial Group started coverage on Adtalem Global Education in a research report on Wednesday, April 23rd. They set a "buy" rating and a $135.00 price objective on the stock. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Adtalem Global Education has a consensus rating of "Moderate Buy" and an average target price of $139.00.

Adtalem Global Education Stock Performance

Adtalem Global Education stock traded up $0.4550 during mid-day trading on Tuesday, hitting $135.3350. The company had a trading volume of 347,094 shares, compared to its average volume of 469,739. The company has a market capitalization of $4.87 billion, a price-to-earnings ratio of 21.86, a P/E/G ratio of 1.17 and a beta of 0.88. 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 company's fifty day moving average is $121.60 and its 200-day moving average is $114.02. Adtalem Global Education has a 12-month low of $68.60 and a 12-month high of $140.12.

Adtalem Global Education (NYSE:ATGE - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $1.66 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.15. The business had revenue of $457.11 million for the quarter, compared to the consensus estimate 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 last year, the business posted $1.37 earnings per share. Adtalem Global Education has set its FY 2026 guidance at 7.600-7.900 EPS. Equities research analysts predict that Adtalem Global Education will post 6.2 EPS for the current year.

Adtalem Global Education announced that its Board of Directors has initiated a share repurchase plan on Tuesday, May 6th that permits the company to repurchase $150.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 3.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Adtalem Global Education

In other Adtalem Global Education news, Director William W. Burke sold 2,291 shares of the business's stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $128.35, for a total value of $294,049.85. Following the sale, the director owned 9,368 shares of the company's stock, valued at $1,202,382.80. The trade was a 19.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 2.00% of the stock is currently owned by insiders.

Institutional Trading of Adtalem Global Education

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. LPL Financial LLC purchased a new position in Adtalem Global Education in the 4th quarter valued at approximately $403,000. Envestnet Asset Management Inc. purchased a new position in Adtalem Global Education in the 4th quarter valued at approximately $234,000. Raymond James Financial Inc. purchased a new position in Adtalem Global Education in the 4th quarter valued at approximately $2,368,000. First Trust Advisors LP boosted its position in Adtalem Global Education by 27.3% in the 4th quarter. First Trust Advisors LP now owns 89,993 shares of the company's stock valued at $8,176,000 after buying an additional 19,293 shares during the period. Finally, MetLife Investment Management LLC boosted its position in Adtalem Global Education by 6.8% in the 4th quarter. MetLife Investment Management LLC now owns 22,721 shares of the company's stock valued at $2,064,000 after buying an additional 1,454 shares during the period. Hedge funds and other institutional investors own 98.84% of the company's stock.

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.