Pearson (NYSE:PSO) Shares Gap Up - Still a Buy?

Key Points

• Pearson's shares saw a significant price increase, opening at $15.24 after a previous close of $14.23.
• Analysts have mixed ratings on Pearson: Wall Street Zen downgraded it to "hold", while BNP Paribas upgraded it to a "strong-buy".
• Institutional investors have shown increased interest, with TD Private Client Wealth LLC raising its position by 1,798.8% in the first quarter.

Pearson, PLC (NYSE:PSO - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $14.23, but opened at $15.24. Pearson shares last traded at $15.12, with a volume of 327,929 shares trading hands.

Analysts Set New Price Targets

PSO has been the topic of a number of research reports. Wall Street Zen upgraded shares of Pearson from a "hold" rating to a "strong-buy" rating in a report on Sunday. BNP Paribas raised Pearson from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th.

Pearson Stock Down 0.2%

The company has a fifty day moving average price of $14.71 and a 200-day moving average price of $15.71. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.80 and a current ratio of 1.85. The firm has a market capitalization of $9.76 billion, a PE ratio of 15.90, a PEG ratio of 2.65 and a beta of 0.58.

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 issued a dividend of $0.0892 per share. This represents a yield of 210.0%. The ex-dividend date is Friday, August 15th. Pearson's dividend payout ratio is presently 46.81%.

Institutional Trading of Pearson

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of Montreal Can bought a new position in shares of Pearson during the second quarter valued at approximately $159,000. AdvisorShares Investments LLC boosted its holdings in Pearson by 18.3% during the 2nd quarter. AdvisorShares Investments LLC now owns 54,740 shares of the company's stock valued at $817,000 after acquiring an additional 8,471 shares during the period. Atria Investments Inc grew its position in Pearson by 62.0% in the 2nd quarter. Atria Investments Inc now owns 52,557 shares of the company's stock valued at $785,000 after acquiring an additional 20,118 shares during the last quarter. Assetmark Inc. lifted its position in shares of Pearson by 68.2% during the second quarter. Assetmark Inc. now owns 10,432 shares of the company's stock worth $156,000 after purchasing an additional 4,230 shares during the last quarter. Finally, Hantz Financial Services Inc. boosted its stake in shares of Pearson by 519.7% during the second quarter. Hantz Financial Services Inc. now owns 6,030 shares of the company's stock valued at $90,000 after purchasing an additional 5,057 shares during the period. 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.