Pearson (NYSE:PSO) Upgraded to Buy at Wall Street Zen

Key Points

• Pearson (NYSE:PSO) was upgraded from a "hold" to a "buy" rating by analysts at Wall Street Zen, reflecting increased confidence in the company's stock.
• The stock has received mixed reviews, with one rating as a Strong Buy, one as a Buy, and one as a Hold, resulting in a consensus rating of "Buy" and a target price of $18.00.
• Pearson's market cap is currently $9.18 billion, and the stock traded down 0.9% recently, with a current price of $14.16.

Wall Street Zen upgraded shares of Pearson (NYSE:PSO - Free Report) from a hold rating to a buy rating in a research note released on Friday.

Other analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Pearson in a research report on Monday, August 4th. BNP Paribas raised Pearson from a "hold" rating to a "strong-buy" rating in a research note on Friday, June 27th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $18.00.

Pearson Trading Up 2.2%

Pearson stock traded up $0.31 during midday trading on Friday, hitting $14.35. 436,398 shares of the stock were exchanged, compared to its average volume of 483,710. Pearson has a 52 week low of $13.27 and a 52 week high of $17.90. The company has a quick ratio of 2.24, a current ratio of 2.31 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $9.31 billion, a PE ratio of 15.26, a P/E/G ratio of 2.46 and a beta of 0.57. The company has a fifty day simple moving average of $14.46 and a two-hundred day simple moving average of $15.33.

Pearson Cuts Dividend

The business 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. The ex-dividend date of this dividend is Friday, August 15th. This represents a yield of 210.0%. Pearson's dividend payout ratio is 19.15%.

Institutional Investors Weigh In On Pearson

A number of institutional investors and hedge funds have recently made changes to their positions in PSO. Goldman Sachs Group Inc. boosted its holdings in shares of Pearson by 2.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,144,680 shares of the company's stock valued at $34,336,000 after buying an additional 44,349 shares during the last quarter. Millennium Management LLC acquired a new position in Pearson during the first quarter worth $11,546,000. Northern Trust Corp raised its position in Pearson by 1.6% during the first quarter. Northern Trust Corp now owns 716,632 shares of the company's stock worth $11,473,000 after acquiring an additional 11,010 shares in the last quarter. Invesco Ltd. lifted its stake in Pearson by 34.6% in the second quarter. Invesco Ltd. now owns 693,250 shares of the company's stock valued at $10,350,000 after acquiring an additional 178,239 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its position in shares of 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 acquiring an additional 554,044 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.