Pearson, PLC (NYSE:PSO) Sees Large Increase in Short Interest

Key Points

• Short interest in Pearson surged 56.3% to 4.15 million shares as of August 14, representing about 0.7% of shares outstanding and 5.2 days of average trading volume to cover.
• Analyst sentiment remains mixed: Weiss Ratings and Wall Street Zen upgraded the stock to “buy,” while Goldman Sachs downgraded it to “neutral.” Overall, two analysts rate Pearson a Buy and five rate it a Hold, producing an average “Hold” rating.
• Pearson shares opened at $16.58, near their 50-day moving average of $16.46 and below the one-year high of $17.75. The company declared a $0.1103-per-share dividend payable September 21 to shareholders of record August 14.

Pearson, PLC (NYSE:PSO - Get Free Report) was the target of a large increase in short interest during the month of August. As of August 14th, there was short interest totaling 4,153,239 shares, an increase of 56.3% from the July 30th total of 2,657,247 shares. Approximately 0.7% of the company's shares are sold short. Based on an average daily trading volume, of 804,860 shares, the days-to-cover ratio is currently 5.2 days.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Weiss Ratings upgraded shares of Pearson from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, June 4th. The Goldman Sachs Group downgraded shares of Pearson from a "buy" rating to a "neutral" rating in a research note on Tuesday, August 4th. JPMorgan Chase & Co. reiterated a "neutral" rating on shares of Pearson in a report on Tuesday, July 14th. Wall Street Zen raised shares of Pearson from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Pearson in a report on Monday, August 3rd. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Pearson has an average rating of "Hold".

Pearson Stock Down 0.9%

Pearson stock opened at $16.58 on Tuesday. The stock's 50 day moving average is $16.46 and its 200 day moving average is $14.86. The company has a quick ratio of 1.94, a current ratio of 2.00 and a debt-to-equity ratio of 0.50. Pearson has a one year low of $12.02 and a one year high of $17.75.

Pearson Cuts Dividend

The company also recently declared a dividend, which will be paid on Monday, September 21st. Shareholders of record on Friday, August 14th will be issued a dividend of $0.1103 per share. The ex-dividend date is Friday, August 14th. This represents a yield of 137.0%.

Institutional Investors Weigh In On Pearson

Institutional investors have recently modified their holdings of the company. O Shaughnessy Asset Management LLC increased its position in shares of Pearson by 2.1% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 42,183 shares of the company's stock worth $592,000 after buying an additional 863 shares during the period. PNC Financial Services Group Inc. boosted its position in Pearson by 3.9% during the fourth quarter. PNC Financial Services Group Inc. now owns 24,482 shares of the company's stock valued at $344,000 after acquiring an additional 930 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in Pearson by 54.2% during the 4th quarter. Farther Finance Advisors LLC now owns 2,947 shares of the company's stock worth $41,000 after acquiring an additional 1,036 shares during the period. Bank of New York Mellon Corp grew its holdings in Pearson by 1.9% during the 1st quarter. Bank of New York Mellon Corp now owns 56,380 shares of the company's stock worth $740,000 after acquiring an additional 1,071 shares during the period. Finally, CIBC Private Wealth Group LLC raised its position in shares of Pearson by 952.1% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,757 shares of the company's stock worth $25,000 after acquiring an additional 1,590 shares in the last quarter. 2.14% of the stock is owned by institutional investors.

About Pearson

Pearson plc is a global education company headquartered in London, England, with significant operations in North America, Europe, Asia, and Latin America. Tracing its roots back to 1844, Pearson evolved from its early beginnings into one of the world's leading providers of educational content, digital learning tools, and assessment services. The company's American subsidiary trades on the New York Stock Exchange under the symbol PSO.

Pearson's core business encompasses a broad portfolio of products and services for learners, educators, and institutions.

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