Career Education (CECO) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Career Education (NASDAQ:CECO) from a hold rating to a sell rating in a report published on Tuesday.

According to Zacks, “Career Education Corporation is an educational services company committed to providing quality, career-focused learning and led by passionate professionals who inspire individual worth and lifelong achievement. The universities of the Career Education family – American InterContinental UniversityR (AIU) and Colorado Technical UniversityR (CTU) – provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels to a diverse student population pursuing various career-oriented disciplines. They serve students on ground campuses and online with career-focused degree programs that meet the education demands of today’s busy adults. AIU and CTU continue to show innovation in higher education, advancing new personalized learning technologies like their intellipathTM adaptive learning platform, which allow students to more efficiently move toward pursuing a degree by receiving course credit for knowledge they can already demonstrate. “

A number of other analysts also recently weighed in on CECO. BidaskClub upgraded shares of Career Education from a buy rating to a strong-buy rating in a report on Friday, July 13th. Piper Jaffray Companies reaffirmed a hold rating and set a $19.50 price target on shares of Career Education in a research note on Thursday, August 2nd. Finally, ValuEngine cut shares of Career Education from a strong-buy rating to a buy rating in a research note on Tuesday, September 4th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $18.83.

Shares of Career Education stock traded up $0.08 during trading hours on Tuesday, reaching $12.97. The company’s stock had a trading volume of 398,993 shares, compared to its average volume of 220,869. Career Education has a one year low of $11.38 and a one year high of $19.07. The company has a market cap of $917.36 million, a PE ratio of 41.84, a price-to-earnings-growth ratio of 1.46 and a beta of 1.75.

Career Education (NASDAQ:CECO) last posted its earnings results on Thursday, November 1st. The company reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.04. Career Education had a negative net margin of 0.57% and a positive return on equity of 16.59%. The firm had revenue of $146.00 million for the quarter, compared to the consensus estimate of $146.50 million. During the same period in the previous year, the firm posted $0.05 EPS. The business’s quarterly revenue was up .7% on a year-over-year basis. As a group, sell-side analysts forecast that Career Education will post 0.9 earnings per share for the current year.

In related news, Director Richard D. Wang sold 83,947 shares of Career Education stock in a transaction dated Wednesday, September 5th. The shares were sold at an average price of $15.48, for a total transaction of $1,299,499.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP John Robert Kline sold 4,700 shares of Career Education stock in a transaction dated Friday, September 28th. The stock was sold at an average price of $15.00, for a total transaction of $70,500.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 366,776 shares of company stock valued at $5,630,270. 5.01% of the stock is owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in the stock. Amalgamated Bank purchased a new stake in Career Education in the 2nd quarter valued at about $179,000. Wedge Capital Management L L P NC purchased a new stake in Career Education in the 2nd quarter valued at about $191,000. Bank of Montreal Can purchased a new stake in Career Education in the 2nd quarter valued at about $193,000. Trexquant Investment LP purchased a new stake in Career Education in the 3rd quarter valued at about $193,000. Finally, KBC Group NV purchased a new stake in Career Education in the 2nd quarter valued at about $202,000. 82.55% of the stock is owned by hedge funds and other institutional investors.

Career Education Company Profile

Career Education Corporation operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, campus based, and blended learning programs in the United States. The company operates through three segments: Colorado Technical University (CTU), American InterContinental University (AIU), and All Other Campuses.

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