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Why Adtalem’s Stock is Heating Up

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Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
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Adtalem Global Education Inc. stocks have been trading up by 16.93% amid strategic partnerships and expansion news.

Third Quarter Financial Triumph

  • The latest report shows Adtalem Global Education’s revenue at $466.1M, beating analyst predictions by almost $20M.
  • Earnings per share soared to $1.92, well above the expected $1.65, marking seven quarters of consistent growth.
  • A $150M stock buyback initiative highlights confidence in Adtalem’s robust business fundamentals.
  • Adtalem proudly announced a 95% residency rate for its medical graduates, emphasizing its continued excellence in healthcare education.
  • Updated guidance for fiscal 2025 underlines projected revenue growth of 11-12%, painting a promising picture.

Candlestick Chart

Live Update At 17:03:27 EST: On Friday, May 09, 2025 Adtalem Global Education Inc. stock [NYSE: ATGE] is trending up by 16.93%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Adtalem’s Latest Financial Performance

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The recent surge in Adtalem Global Education Inc.’s stock price can be attributed to its strong third-quarter results. The company reported a revenue of $466.1M, far exceeding the analysts’ predictions which pinned it at $446.8M. Revenue growth isn’t the only win—profits are climbing too. Adtalem’s adjusted earnings per share (EPS) were logged at $1.92, surpassing expectations and marking a substantial increase from the previous year’s $1.50. As a company that’s been steadily growing its enrollment numbers, this new elevation to its financial metrics only reaffirms its academic clout.

A Dive into the Numbers

Adtalem’s consistent enrollment growth and investment in innovative healthcare programs have been key drivers for their rising revenues. Two key medical schools under their umbrella, American University of the Caribbean School of Medicine and Ross University School of Medicine, attained a stellar 95% residency rate inclusive of notable placements across federally designated disadvantaged areas. This underlines its dominance and impact in shaping tomorrow’s healthcare landscape, indicating deepened market trust and brand reputation.

Additionally, they unveiled a new $150M stock repurchase program slated through May 2028. The company’s ongoing ability to return money—$763M cumulatively since February 2022—by reducing outstanding shares by 28%, highlights disciplined capital allocation. Confident in its operational excellence and future prospects, Adtalem is ensuring shareholder value is both preserved and enhanced.

Strategic Financial Health

Adtalem’s fundamentals reveal a safe investment prospect. The EBIT margin at 21.8% and EBITDA margin at 25.9% display strong profitability, suggesting efficient operational management. Converted into a price-to-sales ratio of 2.56 and a price-to-book ratio of 3, the valuations reflect market faith in its growth potential.

Despite challenges involving long-term debt, with a debt-to-equity ratio standing at 0.54, the numbers indicate a sound leverage strategy. This affirms control over liabilities against assets and equity, solidifying the stability necessary for funding growth endeavors.

Riding the Waves of Change

The expected continual growth guidance for fiscal year 2025 projects between $1.76B to $1.775B in revenue. With an anticipated adjusted EPS range of $6.40 to $6.60, this beats the previously set expectations of $6.25, showcasing an upward trajectory that shareholders find promising.

More Breaking News

Market Pulse

In light of Jefferies’ initiation of coverage on Adtalem with a “Buy” rating and a $135 price target, there’s additional momentum pushing the stock higher. Highlighting the company’s unique position in healthcare education and showcasing a promising cash flow and buyback profile, these endorsements further compound Adtalem’s perceived market value.

The previous day’s after-hours trading reflected a 2% rise in share value, a testament to the robust investor confidence rippling through the financial community. By emphasizing its “Growth with Purpose” strategy, the alignment of goals with financial tactics appears seamless, fostering a conducive environment for ongoing investor support.

Conclusion: Investment Perspectives

Deep pockets can often outshine volatile market dynamics, perhaps hinting that Adtalem is in it for the long haul. For traders sitting on the fence regarding Adtalem Global Education’s stock, the consistent value creation, reinforced by precise execution of financial strategies and strategic academic accomplishments, signals a stable option in an otherwise capricious market. As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” That said, understanding the landscape’s fluidity is crucial—what rises can also dip. But as of now, Adtalem seems to hold enviable leverage over its equity’s trajectory, making it a pertinent consideration for those seeking education sector opportunities with a tinge of assured growth.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”