The for-profit post-secondary educator said it received a notice that the SEC may take enforcement action against it, relating to its student loans, Bloomberg reports.
Last year, the SEC began an investigation into ITT Educational's loan programs after discovering accounting and disclosure issues. The company is currently in discussions with the SEC in an attempt to avoid an enforcement decision, an ITT spokeswoman told Bloomberg.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The SEC issued the company what is known as a "Wells Notice," which says the regulator may look into a cease and desist order, and issue fines. The notice is not a formal accusation but gives notice the SEC is recommending an action, MarketWatch reports.
Additionally, The Education Department has placed ITT Educational under heightened cash monitoring for failing to submit statements for 2013, and is auditing its administration of federal financial aid, MarketWatch noted.
The New York Stock Exchange also issued ITT Educational a warning that it may delist its shares for failing to file its annual report from last year, MarketWatch said.
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 few notable weaknesses, 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."