Pearson (NYSE:PSO) Trading Down 6.3% - What's Next?

Key Points

• Pearson shares fell 6.3% in mid-day trading, briefly touching $16.49 after closing at $17.61 the prior session, on heavier-than-usual volume.
• Analyst sentiment is mixed: recent updates included a raise to Buy from Weiss Ratings, a downgrade to Hold from Wall Street Zen, and a neutral reiteration from JPMorgan. Overall, the stock currently carries a Hold consensus rating.
• Pearson’s balance sheet appears solid, with a debt-to-equity ratio of 0.39 and strong liquidity ratios, while institutional investors such as Morgan Stanley and Qube Research have recently increased their stakes.

Pearson, PLC (NYSE:PSO - Get Free Report)'s stock price dropped 6.3% during mid-day trading on Tuesday . The company traded as low as $16.49 and last traded at $16.5020. 1,597,747 shares traded hands during trading, an increase of 53% from the average session volume of 1,043,154 shares. The stock had previously closed at $17.61.

Analyst Upgrades and Downgrades

PSO has been the subject of several recent research reports. Weiss Ratings raised shares of Pearson from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, June 4th. Wall Street Zen lowered shares of Pearson from a "buy" rating to a "hold" rating in a report on Monday, May 18th. Finally, JPMorgan Chase & Co. restated a "neutral" rating on shares of Pearson in a research note on Tuesday. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold".

Pearson Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 2.00 and a quick ratio of 1.94. The firm has a 50 day moving average price of $15.45 and a 200-day moving average price of $14.07.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Morgan Stanley increased its position in shares of Pearson by 34.4% during the fourth quarter. Morgan Stanley now owns 3,971,424 shares of the company's stock worth $55,759,000 after purchasing an additional 1,015,739 shares in the last quarter. Millennium Management LLC acquired a new position in Pearson in the 1st quarter valued at $11,546,000. Arrowstreet Capital Limited Partnership increased its stake in Pearson by 72.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,645,461 shares of the company's stock valued at $21,605,000 after buying an additional 691,339 shares during the period. Qube Research & Technologies Ltd boosted its holdings in shares of 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 acquiring an additional 554,044 shares in the last quarter. Finally, Marshall Wace LLP purchased a new stake in shares of Pearson in the fourth quarter valued at about $6,515,000. Institutional investors and hedge funds own 2.14% of the company's stock.

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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