Perdoceo Education (NASDAQ:PRDO) Shares Down 8.4% - Should You Sell?

Key Points

• Perdoceo Education shares fell 8.4% in mid-day trading, slipping to about $33.27 after closing at $36.32 the previous session.
• Despite the stock drop, the company recently beat earnings and revenue expectations, reporting $0.90 EPS on $221.74 million in revenue, and it raised guidance for FY 2026.
• Analyst sentiment remains positive overall with a consensus “Moderate Buy” rating and an average price target of $44, even as some analysts recently downgraded the stock and insiders sold shares.

Perdoceo Education Corporation (NASDAQ:PRDO - Get Free Report) fell 8.4% during mid-day trading on Wednesday . The company traded as low as $32.91 and last traded at $33.2650. 444,181 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 611,201 shares. The stock had previously closed at $36.32.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on PRDO. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Perdoceo Education in a report on Tuesday, April 21st. Zacks Research cut Perdoceo Education from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 21st. Finally, Barrington Research set a $44.00 price target on Perdoceo Education in a research report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $44.00.

Perdoceo Education Price Performance

The company's 50-day moving average is $33.95 and its two-hundred day moving average is $33.60. The firm has a market cap of $2.10 billion, a P/E ratio of 12.84, a PEG ratio of 0.78 and a beta of 0.70.

Perdoceo Education (NASDAQ:PRDO - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.84 by $0.06. The firm had revenue of $221.74 million for the quarter, compared to analyst estimates of $218.40 million. Perdoceo Education had a net margin of 19.91% and a return on equity of 18.51%. The business's quarterly revenue was up 4.1% compared to the same quarter last year. During the same period last year, the firm earned $0.70 EPS. Perdoceo Education has set its FY 2026 guidance at 3.050-3.160 EPS and its Q2 2026 guidance at 0.790-0.800 EPS. On average, analysts expect that Perdoceo Education Corporation will post 3.11 EPS for the current fiscal year.

Perdoceo Education Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Monday, June 1st were given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.8%. The ex-dividend date was Monday, June 1st. Perdoceo Education's payout ratio is currently 22.99%.

Insiders Place Their Bets

In other news, insider Michele A. Peppers sold 14,000 shares of Perdoceo Education stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $34.50, for a total value of $483,000.00. Following the transaction, the insider owned 35,748 shares in the company, valued at approximately $1,233,306. This trade represents a 28.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Patrick W. Gross sold 3,647 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $34.98, for a total value of $127,572.06. Following the transaction, the director directly owned 114,970 shares of the company's stock, valued at $4,021,650.60. This trade represents a 3.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 38,270 shares of company stock valued at $1,336,193 over the last ninety days. Company insiders own 1.46% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Salomon & Ludwin LLC lifted its holdings in shares of Perdoceo Education by 72.6% in the fourth quarter. Salomon & Ludwin LLC now owns 811 shares of the company's stock worth $25,000 after acquiring an additional 341 shares during the last quarter. Fifth Third Bancorp grew its holdings in shares of Perdoceo Education by 108.2% during the 4th quarter. Fifth Third Bancorp now owns 970 shares of the company's stock valued at $28,000 after purchasing an additional 504 shares during the last quarter. IFP Advisors Inc increased its position in Perdoceo Education by 34.6% during the 4th quarter. IFP Advisors Inc now owns 1,363 shares of the company's stock worth $40,000 after purchasing an additional 350 shares in the last quarter. Rockefeller Capital Management L.P. increased its position in Perdoceo Education by 48.8% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,132 shares of the company's stock worth $63,000 after purchasing an additional 699 shares in the last quarter. Finally, Meeder Asset Management Inc. bought a new position in Perdoceo Education in the 1st quarter valued at approximately $83,000. Institutional investors own 93.46% of the company's stock.

Perdoceo Education Company Profile

Perdoceo Education Corporation NASDAQ: PRDO is a for-profit postsecondary education provider offering certificate, associate, bachelor's and master's degree programs. The company operates primarily through two brand platforms—Colorado Technical University and American InterContinental University—delivering career-focused education both on campus and online. These programs span fields such as business, information technology, healthcare and criminal justice, targeting working adults seeking to advance or pivot their careers.

With headquarters in Schaumburg, Illinois, Perdoceo serves students across the United States and internationally through its online offerings.

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