Adtalem Global Education Inc. (NYSE:ATGE) shares traded higher over the last trading session, gaining 1.58% on 05/20/21. The shares fell to a low of $36.36 before closing at $37.86. Intraday shares traded counted 0.51 million, which was -15.48% lower than its 30-day average trading volume of 441.68K. ATGE’s previous close was $37.27 while the outstanding shares total 50.66M. The firm has a beta of 1.20, a 12-month trailing P/E ratio of 12.30, and a growth ratio of 3.37. The stock’s Relative Strength Index (RSI) is 52.49, with weekly volatility at 2.94% and ATR at 1.30. The ATGE stock’s 52-week price range has touched low of $23.22 and a $43.85 high.
Investors have identified the Education & Training Services company Adtalem Global Education Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.80 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Adtalem Global Education Inc. (ATGE) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ATGE, the company has in raw cash 1.31 billion on their books with 3.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.5 billion total, with 382.2 million as their total liabilities.
ATGE were able to record 109.32 million as free cash flow during the 08/24/2021 quarter of the year, this saw their quarterly net cash flow reduce by 804.67 million. In cash movements, the company had a total of 144.16 million as operating cash flow.
Potential earnings growth for Adtalem Global Education Inc. (ATGE)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/24/2021 quarter of the year, Adtalem Global Education Inc. recorded a total of 280.65 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.27% coming in sequential stages and their sales for the 08/24/2021 quarter reducing by -0.88%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 123.08 million trying to sell their products during the last quarter, with the result yielding a gross income of 157.58 million. This allows shareholders to hold on to 50.66M with the recently reported earning now reading 0.48 cents per share. This is a figure that compared to analyst’s prediction for their 08/24/2021 (0.72 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.39 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ATGE sounds very interesting.
Is the stock of ATGE attractive?
In related news, Director, Kiser Georgette D. bought 50 shares of the company’s stock in a transaction that recorded on May 14. The purchase was performed at an average price of 37.83, for a total value of 1,892. As the purchase deal closes, the Director, MALAFRONTE MICHAEL W now bought 7,200 shares of the company’s stock, valued at 245,090. Also, Director, Kiser Georgette D. bought 50 shares of the company’s stock in a deal that was recorded on Mar 02. The shares were cost at an average price of 38.35 per share, with a total market value of 1,917. Following this completion of disposal, the Director, Logan Lyle now holds 1,051 shares of the company’s stock, valued at 40,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
2 out of 3 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Adtalem Global Education Inc.. 0 analysts has assigned a Sell rating on the ATGE stock. The 12-month mean consensus price target for the company’s shares has been set at $46.67.