Pearson (NYSE:PSO) Cut to "Hold" at Wall Street Zen

Key Points

• Pearson's stock rating was downgraded from a "strong-buy" to a "hold" by Wall Street Zen in a recent research report.
• Deutsche Bank reaffirmed its "hold" rating on Pearson, while BNP Paribas upgraded it to a "strong-buy" earlier in the summer.
• Pearson's market capitalization is currently $9.44 billion, with a PE ratio of 15.38 and a 52-week price range between $13.10 and $17.90.

Wall Street Zen downgraded shares of Pearson (NYSE:PSO - Free Report) from a strong-buy rating to a hold rating in a research note published on Monday morning.

A number of other equities analysts also recently issued reports on PSO. BNP Paribas raised Pearson from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Pearson in a research report on Monday, August 4th.

Pearson Price Performance

PSO stock traded up $0.01 during midday trading on Monday, reaching $14.52. The stock had a trading volume of 338,711 shares, compared to its average volume of 673,303. The company's fifty day simple moving average is $14.56 and its 200 day simple moving average is $15.65. The company has a current ratio of 2.31, a quick ratio of 2.24 and a debt-to-equity ratio of 0.40. The company has a market cap of $9.48 billion, a price-to-earnings ratio of 15.44, a price-to-earnings-growth ratio of 2.43 and a beta of 0.58. Pearson has a 52-week low of $13.27 and a 52-week high of $17.90.

Pearson Cuts Dividend

The company also recently declared a semi-annual dividend, which will be paid on Monday, September 22nd. Investors of record on Friday, August 15th will be given a dividend of $0.0892 per share. This represents a dividend yield of 210.0%. The ex-dividend date of this dividend is Friday, August 15th. Pearson's dividend payout ratio is currently 46.81%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Millennium Management LLC purchased a new stake in shares of Pearson during the 1st quarter worth about $11,546,000. Qube Research & Technologies Ltd raised its position in Pearson by 1,072.4% in the 2nd quarter. Qube Research & Technologies Ltd now owns 605,707 shares of the company's stock valued at $9,043,000 after purchasing an additional 554,044 shares during the last quarter. Northern Trust Corp increased its stake in shares of Pearson by 69.0% in the 4th quarter. Northern Trust Corp now owns 705,622 shares of the company's stock valued at $11,375,000 after buying an additional 288,114 shares during the period. Optiver Holding B.V. grew its stake in shares of Pearson by 135.5% during the fourth quarter. Optiver Holding B.V. now owns 495,797 shares of the company's stock worth $7,992,000 after purchasing an additional 285,234 shares during the period. Finally, JPMorgan Chase & Co. grew its stake in Pearson by 672.2% in the second quarter. JPMorgan Chase & Co. now owns 261,605 shares of the company's stock valued at $3,906,000 after acquiring an additional 227,725 shares during the period. Institutional investors own 2.14% of the company's stock.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education.