Pearson, PLC (NYSE:PSO) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Pearson, PLC has received a consensus rating of "Moderate Buy" from analysts, with an average price target of $18.00 among brokers over the past year.
• Recent trading activity saw hedge funds significantly increase their positions in Pearson, with TD Private Client Wealth increasing their stake by 1,798.8% in the first quarter.
• Pearson's stock has fluctuated between a 12-month low of $13.27 and a high of $17.90, recently trading at $14.71.

Shares of Pearson, PLC (NYSE:PSO - Get Free Report) have received a consensus rating of "Moderate Buy" from the five research firms that are currently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a hold recommendation, two have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $18.00.

Several analysts have issued reports on the company. BNP Paribas raised shares of Pearson from a "hold" rating to a "strong-buy" rating in a research report on Friday, June 27th. Wall Street Zen lowered shares of Pearson from a "buy" rating to a "hold" rating in a research report on Saturday, September 20th. Morgan Stanley started coverage on shares of Pearson in a research report on Monday. They issued an "equal weight" rating for the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Pearson in a report on Monday, August 4th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Pearson in a report on Wednesday, October 8th.

Institutional Trading of Pearson

Hedge funds and other institutional investors have recently made changes to their positions in the business. TD Private Client Wealth LLC increased its position in Pearson by 1,798.8% in the first quarter. TD Private Client Wealth LLC now owns 1,633 shares of the company's stock worth $26,000 after purchasing an additional 1,547 shares during the period. First Horizon Advisors Inc. lifted its holdings in shares of Pearson by 3,131.8% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,133 shares of the company's stock valued at $32,000 after purchasing an additional 2,067 shares in the last quarter. Brooklyn Investment Group lifted its holdings in shares of Pearson by 308.3% during the 1st quarter. Brooklyn Investment Group now owns 2,356 shares of the company's stock valued at $38,000 after purchasing an additional 1,779 shares in the last quarter. Global Trust Asset Management LLC bought a new position in shares of Pearson during the 2nd quarter valued at about $64,000. Finally, CWM LLC lifted its holdings in shares of Pearson by 43.6% during the 1st quarter. CWM LLC now owns 4,140 shares of the company's stock valued at $66,000 after purchasing an additional 1,256 shares in the last quarter. 2.14% of the stock is currently owned by institutional investors and hedge funds.

Pearson Price Performance

NYSE PSO traded down $0.28 on Monday, reaching $14.71. The company's stock had a trading volume of 94,670 shares, compared to its average volume of 653,532. Pearson has a twelve month low of $13.27 and a twelve month high of $17.90. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.24 and a current ratio of 2.31. The stock has a market cap of $9.44 billion, a PE ratio of 15.62, a PEG ratio of 2.57 and a beta of 0.55. The firm's 50 day moving average is $14.32 and its two-hundred day moving average is $14.89.

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 issued a dividend of $0.0892 per share. The ex-dividend date of this dividend was Friday, August 15th. This represents a dividend yield of 210.0%. Pearson's dividend payout ratio (DPR) is presently 22.34%.

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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