Short Interest in Pearson, PLC (NYSE:PSO) Declines By 59.8%

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 target of a significant decline in short interest in 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. Based on an average daily volume of 692,400 shares, the short-interest ratio is presently 0.6 days. Approximately0.1% of the shares of the company are sold short. Approximately0.1% of the shares of the company are sold short. Based on an average daily volume of 692,400 shares, the short-interest ratio is presently 0.6 days.

Institutional Investors Weigh In On Pearson

Several large investors have recently made changes to their positions in PSO. JPMorgan Chase & Co. lifted its stake in Pearson by 103.9% in the fourth quarter. JPMorgan Chase & Co. now owns 31,145 shares of the company's stock valued at $502,000 after acquiring an additional 15,867 shares during the last quarter. Wells Fargo & Company MN lifted its stake in Pearson by 45.6% in the fourth quarter. Wells Fargo & Company MN now owns 8,418 shares of the company's stock valued at $136,000 after acquiring an additional 2,637 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Pearson by 251.4% in the fourth quarter. Russell Investments Group Ltd. now owns 5,247 shares of the company's stock valued at $85,000 after acquiring an additional 3,754 shares during the last quarter. Cerity Partners LLC lifted its stake in Pearson by 27.3% in the fourth quarter. Cerity Partners LLC now owns 87,382 shares of the company's stock valued at $1,368,000 after acquiring an additional 18,742 shares during the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in Pearson in the fourth quarter valued at $225,000. Institutional investors own 2.14% of the company's stock.

Pearson Price Performance

Shares of PSO stock traded down $0.11 during trading hours on Friday, reaching $14.44. 450,636 shares of the company were exchanged, compared to its average volume of 738,425. Pearson has a fifty-two week low of $13.27 and a fifty-two week high of $17.90. The stock's fifty day moving average is $14.54 and its two-hundred day moving average is $15.63. The company has a market cap of $9.43 billion, a price-to-earnings ratio of 15.36, a P/E/G ratio of 2.44 and a beta of 0.58. The company has a debt-to-equity ratio of 0.40, a current ratio of 2.31 and a quick ratio of 2.24.

Pearson Cuts Dividend

The company also recently announced a semi-annual dividend, which will be paid on Monday, September 22nd. Shareholders of record on Friday, August 15th will be paid a $0.0892 dividend. This represents a yield of 210.0%. The ex-dividend date of this dividend is Friday, August 15th. Pearson's dividend payout ratio is presently 46.81%.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. BNP Paribas upgraded Pearson from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th. Wall Street Zen cut shares of Pearson from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 11th. Finally, Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Pearson in a research note on Monday, August 4th.

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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