NEW YORK (TheStreet) -- ITT Educational Services (ESI) shares are up 4.3% to $8.05 on heavy trading volume today after announcing that CEO Kevin Modany has stepped down as chairman of the company and will resign as CEO on February 4.
The announcement comes one day after the for-profit education company's sale leaseback agreement with College Portfolio Buyer fell through.
ITT Educational Services walked away from the deal after College Portfolio Buyer wanted to extend the deal's diligence period to September 15 from July 31. Instead the company will continue negotiating with other potential buyers, according to the Wall Street Journal.
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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: