Elise Baskel, Senior Vice President at Perdoceo Education Corp (NASDAQ:PRDO), recently sold shares of the company's common stock valued at approximately $500,759. The transaction, executed on November 15, involved the sale of 18,918 shares at a price of $26.47 per share.
This sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which Baskel adopted on August 5, 2024. Following the transaction, Baskel retains direct ownership of 94,770 shares, including 89,669 unvested restricted stock units granted under the company's 2016 Incentive Compensation Plan.
In other recent news, Perdoceo Education Corporation reported a strong third quarter in 2024, with earnings and enrollments exceeding expectations. The company announced a net income of $38.3 million, or $0.57 per diluted share, surpassing the predicted $0.52 to $0.54 range. Notably, enrollments at Colorado Technical University and American InterContinental University System experienced substantial increases.
Perdoceo Education also announced the pending acquisition of the University of St. Augustine, which is expected to enhance its offerings and contribute positively to operating income from 2025. The company further declared a quarterly dividend of $0.13 per share.
Despite anticipated lower revenue at Colorado Technical University and decreased enrollments at the American InterContinental University System, strong corporate engagement and high student retention rates are expected to offset these impacts. The company has also been making selective investments in technology and student support to enhance academic outcomes.
These recent developments reflect Perdoceo Education's ability to exceed financial expectations and grow enrollments in a challenging educational landscape. The company is closely monitoring regulatory changes from the Department of Education, which may affect future operations.
InvestingPro Insights
Perdoceo Education Corp's recent stock performance aligns with the insider sale by Elise Baskel. According to InvestingPro data, the company has seen a significant return of 27.12% over the last month and 18.53% over the last three months. This upward trend is further reflected in the stock's current price, which stands at 89.58% of its 52-week high.
Despite the recent sale by the Senior Vice President, InvestingPro Tips highlight that Perdoceo holds more cash than debt on its balance sheet, indicating a strong financial position. This is particularly relevant given the company's impressive gross profit margins, which stand at 83.46% for the last twelve months as of Q3 2024.
It's worth noting that while the stock has shown strong performance, an InvestingPro Tip suggests that the RSI indicates the stock may be in overbought territory. This could provide context for Baskel's decision to sell shares under the pre-arranged trading plan.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Perdoceo Education Corp, providing a deeper understanding of the company's financial health and market position.
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