Pearson (NYSE:PSO) Shares Gap Down - Time to Sell?

Key Points

• Pearson shares gapped down to $14.12 at the opening, following a close of $14.57, signaling a potential shift in investor sentiment.
• Analysts have mixed opinions on Pearson, with a consensus rating of "Buy" but notable downgrades, including Wall Street Zen lowering their rating from "strong-buy" to "hold."
• A recent semi-annual dividend of $0.0892 per share was announced, reflecting a dividend payout ratio of 18.09% and highlighting changes in the company's financial strategy.

Pearson, PLC (NYSE:PSO - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $14.57, but opened at $14.12. Pearson shares last traded at $14.07, with a volume of 130,012 shares.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Wall Street Zen cut Pearson from a "strong-buy" rating to a "hold" rating in a report on Monday, August 11th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Pearson in a research note on Monday, August 4th. Finally, BNP Paribas upgraded Pearson from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $18.00.

Pearson Trading Down 3.3%

The business has a fifty day moving average price of $14.55 and a 200 day moving average price of $15.45. The company has a market capitalization of $9.14 billion, a PE ratio of 15.03, a P/E/G ratio of 2.45 and a beta of 0.57. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.24 and a current ratio of 2.31.

Pearson Cuts Dividend

The business also recently announced a semi-annual dividend, which will be paid on Monday, September 22nd. Stockholders of record on Friday, August 15th will be paid a $0.0892 dividend. The ex-dividend date is Friday, August 15th. This represents a dividend yield of 210.0%. Pearson's dividend payout ratio (DPR) is 18.09%.

Institutional Investors Weigh In On Pearson

A number of large investors have recently modified their holdings of the stock. Millennium Management LLC purchased a new position in Pearson in the first quarter valued at about $11,546,000. Qube Research & Technologies Ltd boosted its holdings in Pearson by 1,072.4% in the second 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 boosted its holdings in Pearson by 69.0% in the fourth quarter. Northern Trust Corp now owns 705,622 shares of the company's stock valued at $11,375,000 after purchasing an additional 288,114 shares during the last quarter. Cubist Systematic Strategies LLC boosted its holdings in Pearson by 109.6% in the second quarter. Cubist Systematic Strategies LLC now owns 445,228 shares of the company's stock valued at $6,647,000 after purchasing an additional 232,788 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its holdings in Pearson by 672.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 261,605 shares of the company's stock worth $3,906,000 after buying an additional 227,725 shares during the last quarter. Institutional investors and hedge funds 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.

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