ITT Education Plummets 26% on Enrollment Decline, Weakness in Education StocksCraig Dalton (Author) Published Date : Jun 15, 2014 00:22 ET
Shares of ITT Educational Services (ESI) are down nearly 26% and have hit a new 52-week low of $17.54 on the combination of weak enrollment forecasts and spillover pressure on for-profit education stocks from rumors of a large investor short in Apollo Education (APOL). Before Thursday's open, ESI released preliminary Q1 forecasts in which new enrollment was shown to have dropped 3.8% and total enrollment was down 6.4% compared to Q1 2013. Besides the drop in enrollment, shares of ESI are falling in sympathy with other for-profit education stocks in the wake of a report from Seeking Alpha that Pershing Square CEO and activist investor, William Ackman, has taken a large short position in Apollo Education Group (APOL). APOL is down 11%, followed by a 4% loss in Strayer Education (STRA) and 4% loss in DeVry (DV). ESI last traded at $19.26 with a new 52-week range of $17.54 to $45.80.
ITT Education Plummets 26% on Enrollment Decline, Weakness in Education Stocks