Pearson (NYSE:PSO) Shares Gap Up - Should You Buy?

Key Points

• Pearson's stock opened at $15.22 after previously closing at $14.67, reflecting a notable gap up in trading activity.
• Analysts are split on the stock's rating, with one strong buy, two buy, and one hold ratings, resulting in a consensus price target of $18.00.
• The company recently reduced its dividend, with a payout of $0.0892 per share, reflecting a yield of 210.0% and a payout ratio of 22.34%.

Pearson, PLC (NYSE:PSO - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $14.67, but opened at $15.22. Pearson shares last traded at $15.11, with a volume of 275,991 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. BNP Paribas upgraded shares of Pearson from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th. Weiss Ratings restated a "buy (b-)" rating on shares of Pearson in a report on Wednesday, October 8th. Wall Street Zen lowered shares of Pearson from a "buy" rating to a "hold" rating in a report on Saturday, September 20th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Pearson in a report on Monday, August 4th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $18.00.

Pearson Stock Up 2.0%

The stock's fifty day moving average is $14.31 and its 200 day moving average is $14.91. 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 capitalization of $9.67 billion, a P/E ratio of 15.92, a price-to-earnings-growth ratio of 2.60 and a beta of 0.55.

Pearson Cuts Dividend

The business also recently disclosed a semi-annual dividend, which was paid on Monday, September 22nd. Shareholders of record on Friday, August 15th were given a dividend of $0.0892 per share. This represents a yield of 210.0%. The ex-dividend date of this dividend was Friday, August 15th. Pearson's payout ratio is presently 22.34%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. XTX Topco Ltd purchased a new position in Pearson during the 1st quarter valued at $1,396,000. Diversify Wealth Management LLC purchased a new position in Pearson during the 1st quarter valued at $851,000. Envestnet Asset Management Inc. increased its position in Pearson by 146.3% during the 1st quarter. Envestnet Asset Management Inc. now owns 151,413 shares of the company's stock valued at $2,424,000 after purchasing an additional 89,949 shares during the period. Townsquare Capital LLC increased its position in Pearson by 203.8% during the 1st quarter. Townsquare Capital LLC now owns 50,297 shares of the company's stock valued at $805,000 after purchasing an additional 33,743 shares during the period. Finally, Cetera Investment Advisers purchased a new position in Pearson during the 1st quarter valued at $401,000. 2.14% of the stock is owned by hedge funds and other institutional investors.

Pearson Company Profile

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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