NEW YORK (TheStreet) -- ITT Educational Services, Inc. (ESI) stock is lower by -31.87% to $9.75 after the for-profit educator disclosed its sale leaseback agreement with College Portfolio Buyer, LLC. was terminated today, the Wall Street Journal reports.
The would-be buyer wanted to extend the diligence period for the deal from July 31 until September 15 and ITT, in turn, said it would rather negotiate with other prospective buyers, the Journal added.
The agreement provided at the closing stated ITT Educational Services would sell up to 24 parcels of real property and related buildings, and the company would enter into one or more leases with College Portfolio Buyer to lease the properties sold.
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Separately, TheStreet Ratings team rates ITT EDUCATIONAL SERVICES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ITT EDUCATIONAL SERVICES INC (ESI) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: