This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Strayer Tumbles on Enrollment Outlook

ARLINGTON, Va. ( TheStreet) -- Strayer Education (STRA - Get Report) shares tumbled nearly 25% in the first minutes of trading Monday after the postsecondary education company warned of slower student enrollment growth.

Strayer said late Friday that new student enrollments across its campus and online education system decreased by 20% for the 2011 winter term, which began Jan. 3, even as continuing student enrollments increased by 10%.

Piper Jaffray analyst Peter P. Appert slashed his price target on Strayer Education shares by $17 to $119, maintaining a neutral rating on the stock.

The analyst noted that "Strayer's much weaker than expected fourth-quarter enrollment growth likely portends similar sharp declines in enrollment growth from most of the postsecondary education companies over the next several quarters. We expect deteriorating fundamentals to keep the postsecondary group in a near-term trading range, even in the context of easing regulatory concerns. We see no rush to own STRA shares or for broad industry exposure."


The operator of Strayer University saw its shares shed 24.3% to $116.05 Monday morning.

That led much of the sector lower as well. Everest Colleges parent Corinthian Colleges (COCO - Get Report) saw its shares tumble 11.2% to $4.69 while DeVry (DV - Get Report) lost 13.4% to $41.17. Apollo Group (APOL - Get Report), which is due to report a 12.3% drop in fiscal-first quarter earnings to $1.35 per share after the closing bell Monday, was lower by 5.9% to $35.76.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
COCO $0.01 -25.41%
APOL $17.26 -1.46%
CPLA $63.79 -4.29%
DV $31.08 1.24%
ESI $6.20 1.14%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs