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

Apollo Rebounds on Expectations Beat

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

Despite Apollo's drop in students starts, it could be better positioned relative to its education peers because the decline followed changes in the company's internal regulation. Strayer, meanwhile, saw a drop in student enrollment because of external factors beyond its control.


"While the company and industry are going through a transition, Apollo may be ahead of the curve based on its initiatives -- however painful they may be to near-term results," noted BMO Capital Markets analyst Jeff Silber.

Strayer's enrollment update dragged much of the education sector sharply lower in Monday's trading but many industry players rebounded somewhat in Tuesday's session.

Everest Colleges parent Corinthian Colleges (COCO) closed higher by 1.5%. DeVry (DV - Get Report) gained 4.7%, Lincoln Educational Services (LINC) 1.3% and ITT Educational Services (ESI - Get Report) jumped 7.4%. Grand Canyon Education (LOPE) closed the day unchanged at $18.05.

Strayer remained in negative territory, closing down 0.2%. Capella Education (CPLA - Get Report) was down 1.4%.

A number of schools in the education sector have also offered cautionary statements about falling student enrollment growth in recent months.

On Oct. 14 Apollo warned that enrollment would be down more than 40% in fiscal 2011's first and second quarters . Apollo withdrew its outlook and warned that it would fall out of compliance with the so-called 90:10 rule in fiscal 2012. The rule stipulates that no more than 90% of a for-profit education provider's revenue may be generated from the Department of Education's federal student aid program. Apollo would have to increase its tuition rates if access to federal aid is cut off, further inhibiting student enrollment.

The warning led a sector selloff and was echoed by school stock peers such as Corinthian Colleges , Capella Education and ITT Educational Services .
3 of 4

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
COCO $0.01 1.49%
APOL $10.90 -1.20%
CECO $3.60 -0.14%
CPLA $48.65 0.77%
DV $25.16 -1.10%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs