Hotchkis & Wiley Capital Management LLC Lowers Holdings in Adtalem Global Education Inc. $ATGE

Key Points

• Hotchkis & Wiley Capital Management LLC significantly reduced its stake in Adtalem Global Education by 67.7%, lowering its ownership to approximately 0.07% after selling 56,220 shares.
• Adtalem reported earnings per share (EPS) of $1.66 in its latest quarterly results, exceeding the consensus estimate of $1.51, with a revenue increase of 11.5% year-over-year.
• The company has authorized a $150 million share buyback program, indicating management's belief that its stock is undervalued while also highlighting strong interest from institutional investors who own 98.84% of its shares.

Hotchkis & Wiley Capital Management LLC reduced its position in shares of Adtalem Global Education Inc. (NYSE:ATGE - Free Report) by 67.7% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 26,820 shares of the company's stock after selling 56,220 shares during the period. Hotchkis & Wiley Capital Management LLC owned approximately 0.07% of Adtalem Global Education worth $2,699,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently made changes to their positions in ATGE. AlphaQuest LLC grew its position in Adtalem Global Education by 114.1% during the first quarter. AlphaQuest LLC now owns 3,379 shares of the company's stock worth $340,000 after buying an additional 1,801 shares in the last quarter. Candriam S.C.A. boosted its position in shares of Adtalem Global Education by 255.8% during the 1st quarter. Candriam S.C.A. now owns 60,488 shares of the company's stock valued at $6,088,000 after acquiring an additional 43,488 shares during the last quarter. Credit Agricole S A grew its holdings in shares of Adtalem Global Education by 78.0% during the first quarter. Credit Agricole S A now owns 34,711 shares of the company's stock worth $3,493,000 after purchasing an additional 15,207 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Adtalem Global Education by 8.0% during the first quarter. Northern Trust Corp now owns 511,966 shares of the company's stock worth $51,524,000 after purchasing an additional 37,742 shares in the last quarter. Finally, Algert Global LLC increased its position in shares of Adtalem Global Education by 70.8% in the first quarter. Algert Global LLC now owns 138,649 shares of the company's stock worth $13,954,000 after purchasing an additional 57,478 shares during the last quarter. Hedge funds and other institutional investors own 98.84% of the company's stock.

Adtalem Global Education Price Performance

ATGE stock opened at $135.70 on Wednesday. The firm has a market cap of $4.88 billion, a P/E ratio of 21.92, a P/E/G ratio of 1.17 and a beta of 0.88. The firm's fifty day moving average is $122.10 and its 200 day moving average is $114.37. Adtalem Global Education Inc. has a 52 week low of $68.60 and a 52 week high of $140.12. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.82 and a current ratio of 0.82.

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

Adtalem Global Education announced that its board has authorized 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 purchase up to 3.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on ATGE shares. Zacks Research lowered shares of Adtalem Global Education from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 19th. BMO Capital Markets raised their price objective on shares of Adtalem Global Education from $115.00 to $132.00 and gave the company an "outperform" rating in a research report on Monday, May 12th. Finally, Barrington Research upped their target price on shares of Adtalem Global Education from $140.00 to $150.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Adtalem Global Education has an average rating of "Moderate Buy" and an average price target of $139.00.

Insider Activity

In related news, Director William W. Burke sold 2,291 shares of Adtalem Global Education stock in a transaction on 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 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 filing with the Securities & Exchange Commission, which is available through this link. Also, Director Lisa W. Wardell sold 12,900 shares of the firm's stock in a transaction on 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 completion of the sale, the director directly owned 92,477 shares in the company, valued at approximately $12,290,193.30. This trade represents a 12.24% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 2.00% 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.

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