Adtalem Global Education (NYSE:ATGE) Earns "Outperform" Rating from Barrington Research

Key Points

• Barrington Research has reaffirmed an "outperform" rating for Adtalem Global Education (NYSE:ATGE) with a price target of $140.00, indicating a potential upside of 23.03% from its current stock price.
• Adtalem reported strong quarterly earnings, with an earnings per share (EPS) of $1.92, exceeding analysts' estimates and marking a 12.9% year-over-year revenue growth.
• The company has authorized a stock buyback plan of $150.00 million, reflecting confidence from its Board of Directors in the stock's valuation.

Barrington Research restated their outperform rating on shares of Adtalem Global Education (NYSE:ATGE - Free Report) in a research note published on Wednesday morning,Benzinga reports. They currently have a $140.00 price target on the stock.

Other research analysts have also issued reports about the company. Jefferies Financial Group started coverage on Adtalem Global Education in a research report on Wednesday, April 23rd. They issued a "buy" rating and a $135.00 price target on the stock. BMO Capital Markets upped their price target 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.

Adtalem Global Education Price Performance

Shares of ATGE traded up $0.38 during mid-day trading on Wednesday, hitting $114.65. 27,172 shares of the company traded hands, compared to its average volume of 471,149. Adtalem Global Education has a one year low of $67.30 and a one year high of $140.12. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.39. The business has a 50-day moving average of $122.34 and a 200 day moving average of $111.26. The stock has a market capitalization of $4.27 billion, a price-to-earnings ratio of 19.01, a PEG ratio of 1.02 and a beta of 0.90.

Adtalem Global Education (NYSE:ATGE - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported $1.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.63 by $0.29. The company had revenue of $466.06 million for the quarter, compared to analyst estimates of $447.19 million. Adtalem Global Education had a net margin of 13.34% and a return on equity of 17.47%. The company's revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.50 EPS. As a group, equities analysts expect that Adtalem Global Education will post 6.2 earnings per share for the current fiscal year.

Adtalem Global Education declared that its board has initiated a share buyback program on Tuesday, May 6th that permits the company to buyback $150.00 million in shares. This buyback authorization permits the company to reacquire up to 3.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its shares are undervalued.

Insider Activity

In other news, Director William W. Burke sold 2,291 shares of the company's stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $128.35, for a total transaction of $294,049.85. Following the completion of the transaction, the director directly owned 9,368 shares of the company's stock, valued at $1,202,382.80. This represents a 19.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Adtalem Global Education

A number of large investors have recently bought and sold shares of ATGE. American Century Companies Inc. boosted its stake in shares of Adtalem Global Education by 5.4% during the 4th quarter. American Century Companies Inc. now owns 90,341 shares of the company's stock worth $8,207,000 after buying an additional 4,637 shares during the last quarter. KLP Kapitalforvaltning AS bought a new position in Adtalem Global Education in the fourth quarter valued at approximately $718,000. LPL Financial LLC acquired a new position in shares of Adtalem Global Education during the 4th quarter worth approximately $403,000. Vanguard Group Inc. boosted its holdings in shares of Adtalem Global Education by 1.8% in the 4th quarter. Vanguard Group Inc. now owns 4,593,345 shares of the company's stock valued at $417,305,000 after buying an additional 82,931 shares during the last quarter. Finally, Norges Bank bought a new position in shares of Adtalem Global Education in the fourth quarter valued at $11,157,000. Institutional investors and hedge funds 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.