Pearson (NYSE:PSO) Hits New 1-Year High - Time to Buy?

Key Points

• Pearson shares reached a new 52-week high, trading as high as $17.80 and above both their 50-day ($16.24) and 200-day ($15.61) moving averages.
• Analyst sentiment is mixed but leans cautious: one analyst rates Pearson a Buy, five rate it Hold and one rates it Sell, resulting in a consensus Hold rating.
• Pearson reduced its dividend to $0.1103 per share from $0.2346, while several institutional investors increased their positions; institutional ownership stands at 2.14%.

Pearson, PLC (NYSE:PSO - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $17.80 and last traded at $17.8150, with a volume of 87,359 shares traded. The stock had previously closed at $17.31.

Analyst Ratings Changes

A number of research firms have recently commented on PSO. Wall Street Zen lowered Pearson from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Kepler Capital Markets lowered Pearson from a "hold" rating to a "strong sell" rating in a research note on Monday, September 7th. Weiss Ratings raised Pearson from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday. Citigroup cut Pearson from a "buy" rating to a "neutral" rating in a report on Wednesday, September 2nd. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Pearson in a research note on Monday, August 3rd. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold".

Pearson Stock Performance

The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.94 and a current ratio of 2.00. The stock's fifty day moving average is $16.24 and its two-hundred day moving average is $15.61.

Pearson Cuts Dividend

The company also recently declared a dividend, which was paid on Monday, September 21st. Stockholders of record on Friday, August 14th were given a dividend of $0.1103 per share. This is a decrease from Pearson's previous dividend of $0.2346. The ex-dividend date was Friday, August 14th. This represents a dividend yield of 137.0%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in PSO. Arrowstreet Capital Limited Partnership grew its holdings in shares of Pearson by 72.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,645,461 shares of the company's stock worth $21,605,000 after purchasing an additional 691,339 shares in the last quarter. Quantinno Capital Management LP increased its position in shares of Pearson by 16.8% in the first quarter. Quantinno Capital Management LP now owns 512,854 shares of the company's stock worth $6,734,000 after purchasing an additional 73,788 shares during the last quarter. QRG Capital Management Inc. raised its stake in Pearson by 26.4% in the second quarter. QRG Capital Management Inc. now owns 224,809 shares of the company's stock valued at $3,572,000 after purchasing an additional 47,023 shares in the last quarter. Aaron Wealth Advisors LLC purchased a new stake in Pearson in the first quarter valued at approximately $517,000. Finally, Entropy Technologies LP purchased a new stake in Pearson in the first quarter valued at approximately $412,000. Institutional investors own 2.14% of the company's stock.

Pearson Company Profile

Pearson plc is a global learning and education company headquartered in London, England. Through its assessment, qualifications, learning content and digital services businesses, Pearson supports students, educators, institutions, employers and governments throughout the education and workforce-development lifecycle.

The company provides academic and professional assessments, English-language testing, vocational and higher-education qualifications, textbooks, digital courseware and online learning platforms.

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