Laureate Education Inc . (NASDAQ:LAUR) stock has reached a notable milestone, hitting a 52-week high of $17.98. This peak reflects a significant uptrend in the company's market performance, marking a robust phase in its financial journey over the past year. Investors have shown increased confidence in the education services provider, as evidenced by the stock's impressive 1-year change, which stands at a solid 14.6%. The achievement of this 52-week high signals a strong investor endorsement of the company's strategic initiatives and its potential for sustained growth in the competitive education sector.
In other recent news, Laureate Education, a provider of higher education programs, announced a fresh stock repurchase initiative, allowing for the buyback of up to $100 million of its common stock. This follows a similar $100 million stock buyback completed earlier. The company's strategy of returning capital to shareholders has resulted in nearly $3 billion being returned since 2019 through share repurchases, cash distributions, and dividends. The timing and volume of repurchases will be determined by market conditions and in compliance with the Securities Exchange Act of 1934.
In other recent developments, Laureate Education reported a solid performance for the second quarter of 2024, maintaining its full-year revenue and adjusted EBITDA guidance. The company bought back $72 million worth of shares in the first half of the year. Growth in Mexico and Peru are contributing to the company's positive outlook. Laureate Education also forecasts a 4% to 5% growth in total enrollments year-over-year, with revenue expected to increase by 5% to 6%.
Lastly, Laureate Education plans further product innovation and campus expansions in growing markets. The company projects a high 30% conversion rate of adjusted EBITDA to unlevered free cash flow for 2024. It is estimated that third-quarter revenue will be between $358 million to $362 million, with adjusted EBITDA around $69 million to $73 million.
InvestingPro Insights
Laureate Education's recent 52-week high is supported by several positive financial indicators. According to InvestingPro data, the company's revenue growth stands at 13.59% for the last twelve months as of Q2 2024, with a healthy EBITDA growth of 13.56% over the same period. This growth is reflected in the stock's performance, with a 15.98% total return over the past year.
InvestingPro Tips highlight that Laureate is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 12.54. This suggests the stock may be undervalued compared to its growth prospects. Additionally, the company is noted to be profitable over the last twelve months, aligning with analysts' predictions of profitability for the current year.
The company's strong financial position is further underscored by its ability to cover interest payments with its cash flows, indicating effective debt management. This is particularly relevant given that Laureate operates with a moderate level of debt, as pointed out by another InvestingPro Tip.
For investors seeking more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into Laureate Education's financial health and market position.
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