Pearson, PLC (NYSE:PSO) Sees Significant Decline in Short Interest

Key Points

• Short interest in Pearson, PLC declined by 59.8%, down to 449,900 shares as of July 31st, indicating reduced bearish sentiment toward the stock.
• Several institutional investors have significantly increased their stakes in Pearson, with JPMorgan Chase & Co. raising its stake by 103.9% in the fourth quarter.
• Pearson announced a semi-annual dividend payment of $0.0892, with a yield of 210.0%, reflecting a dividend payout ratio of 46.81%.

Pearson, PLC (NYSE:PSO - Get Free Report) was the recipient of a large decline in short interest in the month of July. As of July 31st, there was short interest totaling 449,900 shares, adeclineof59.8% from the July 15th total of 1,120,000 shares. Approximately0.1% of the company's shares are short sold. Based on an average daily trading volume, of 692,400 shares, the days-to-cover ratio is presently 0.6 days. Based on an average daily trading volume, of 692,400 shares, the days-to-cover ratio is presently 0.6 days. Approximately0.1% of the company's shares are short sold.

Analyst Upgrades and Downgrades

PSO has been the subject of a number of analyst reports. Wall Street Zen downgraded Pearson from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 11th. BNP Paribas upgraded Pearson from a "hold" rating to a "strong-buy" rating in a research report on Friday, June 27th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Pearson in a research note on Monday, August 4th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Pearson currently has an average rating of "Buy" and an average target price of $18.00.

Pearson Price Performance

Shares of Pearson stock traded up $0.0350 during trading on Thursday, reaching $14.7850. 448,654 shares of the company traded hands, compared to its average volume of 730,831. The company has a quick ratio of 2.24, a current ratio of 2.31 and a debt-to-equity ratio of 0.40. Pearson has a 1-year low of $13.27 and a 1-year high of $17.90. The company has a 50 day moving average price of $14.53 and a 200-day moving average price of $15.57.

Pearson Cuts Dividend

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

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of PSO. TD Private Client Wealth LLC boosted its holdings 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 acquiring an additional 1,547 shares in the last quarter. First Horizon Advisors Inc. increased its holdings in shares of Pearson by 3,131.8% during the second quarter. First Horizon Advisors Inc. now owns 2,133 shares of the company's stock valued at $32,000 after acquiring an additional 2,067 shares in the last quarter. Brooklyn Investment Group raised its position in shares of Pearson by 308.3% during the first quarter. Brooklyn Investment Group now owns 2,356 shares of the company's stock worth $38,000 after purchasing an additional 1,779 shares during the period. Global Trust Asset Management LLC bought a new position in shares of Pearson in the 2nd quarter worth $64,000. Finally, CWM LLC lifted its holdings in shares of Pearson by 43.6% in the 1st quarter. CWM LLC now owns 4,140 shares of the company's stock worth $66,000 after purchasing an additional 1,256 shares in the last quarter. Institutional investors and hedge funds 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.