Perdoceo Education Corporation (NASDAQ: PRDO) Seen Running Too Hot, Let’s Look At This More Closely


The Vanguard Group, Inc. recently announced the acquisition of new stake in Perdoceo Education Corporation (NASDAQ:PRDO). The institutional investor has increased its shareholding in the Consumer Defensive company by 2.11% to 4.89 million shares with purchase of 0.1 million shares. This fresh investment now brings its stake to 7.08% valued currently at $79.56 million. In addition, Frontier Capital Management Co. L. raised its holdings by 92467.0 to 3.73 million shares. And Fidelity Management & Research Co. has lifted its position by 11.70% or 0.26 million shares – to 2.51 million shares.

With over 0.43 million Perdoceo Education Corporation (PRDO) shares trading Thursday and a closing price of $15.51 on the day, the dollar volume was approximately $6.71 million. The shares have shown a negative weekly performance of -3.84% and its price on 07/09/20 lost nearly -4.67%. Currently, there are 69.84M common shares owned by the public and among those 68.52M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 3 analysts who have offered their price forecasts for PRDO have a consensus price objective of $22.00. The analysts have set the share’s price value over the next 12 months at a high of $23.00 and a low of $20.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Perdoceo Education Corporation stock is 1.30 for the next 12 months. The average price target is 29.5% above its last price level and an upside to the estimated low will see the stock gain 22.45% over that period. But an upside of 32.57% will see the stock hit the forecast high price target while mean target price for the stock is $23.00.

Insiders at the company have transacted a total of 132 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 67 of these insider trades were purchases, accounting for 925,912 shares. Insider sales of the common stock occurred on 65 occasions, with total insider shares sold totaling 504,997 shares.

The top 3 mutual fund holders in Perdoceo Education Corporation are iShares Core S&P Small Cap ETF, Fidelity Small Cap Stock Fund, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 4.2 million shares of the company’s stock, all valued at over $68.3 million. The company bought an additional 1855.0 shares recently to bring their total holdings to about 6.07% of the shares outstanding. Fidelity Small Cap Stock Fund bought 0.19 million shares to see its total holdings expand to 2.06 million shares valued at over $33.52 million and representing 2.98% of the shares outstanding. Vanguard Total Stock Market Index sold 1925.0 shares to bring its total holdings to over 2.0 million shares at a value of $32.51 million. Vanguard Total Stock Market Index now owns shares totaling to 2.89% of the shares outstanding.

Shares of Perdoceo Education Corporation (NASDAQ: PRDO) opened at $16.18, down -$0.09 from a prior closing price of $16.27. However, the script later closed the day at $15.51, down -4.67%. The company’s stock has a 5-day price change of -3.84% and 32.00% over the past three months. PRDO shares are trading -15.66% year to date (YTD), with the 12-month market performance down to -20.01% lower. It has a 12-month low price of $7.11 and touched a high of $22.50 over the same period. Currently, 0.43 million shares have been traded, compared to an average intraday trading volume of 611.33K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.54%, 0.11%, and 0.56% respectively.

Institutional ownership of Perdoceo Education Corporation (NASDAQ: PRDO) shares accounts for 89.50% of the company’s 69.84M shares outstanding. Mutual fund holders own 42.19%, while other institutional holders and individual stakeholders account for 45.59% and 2.86% respectively.

It has a market capitalization of $1.08B and a beta (3y monthly) value of 1.71. The stock’s trailing 12-month PE ratio is 15.01, while the earnings-per-share (ttm) stands at $1.03. The company has a PEG of 1.00 and a Quick Ratio of 3.60 with the debt-to-equity ratio at 0.01. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.61% over the week and 4.26% over the month.

Analysts forecast that Perdoceo Education Corporation (PRDO) will achieve an EPS of $0.37 for the current quarter, $0.33 for the next quarter and $1.72 for 2021. The lowest estimate earnings-per-share for the quarter is $0.37 while analysts give the company a high EPS estimate of $0.38. Comparatively, EPS for the current quarter was $0.39 a year ago. Earnings per share for the fiscal year are expected to increase by 25.50%, and 12.96% over the next financial year. EPS should shrink at an annualized rate of 15.00% over the next five years, compared to 19.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 3 brokerage firm advisors rate Perdoceo Education Corporation (PRDO) as a “Strong Buy” at a consensus score of 1.30. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 0 of the 3 advise that investors “hold,” and 0 rated it as a “Sell.”


Please enter your comment!
Please enter your name here