New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
October 25, 2013
10:50 EDTWPO, EDMC, COCO, ESI, CECOFor-profit education stocks rise after Career Education sells assets
Many for-profit education stocks are climbing after a private equity firm agreed to buy the European assets of one of the companies in the sector, Career Education (CECO). WHAT'S NEW: Career Education disclosed in a regulatory filing last night that it had agreed to sell its European education assets to private equity firm Apax Partners for $276.5 million in cash. The deal is expected to close by December 27, Career Education stated. ANALYST REACTION: In a note to investors, Wells Fargo analyst Trace Urdan responded to the news by upgrading Career Education to Outperform from Market Perform. Urdan reported that he had previously estimated that Career Education's European assets were worth only $106 million to $127 million, The deal is likely to reduce Career Education's overhead costs, and the transaction suggests that the company is ready to take bold actions to revitalize its U.S. schools, Urdan contended. Meanwhile, Piper Jaffray analyst Peter Appert wrote that Career Education would use the cash from the deal to more effectively pursue initiatives that could boost its growth. Nevertheless, the analyst thinks the company's fundamentals remain weak, and he kept a Neutral rating on the stock. PRICE ACTION: In mid-morning trading, Career Education jumped 54% to $5.85. Many of its peers advanced as well, including Corinthian College (COCO), which rose 2.4% to $2.40, ITT Educational (ESI), which gained 4.5% to $41, Education Management (EDMC), which added 5.4% to $14.90, and Washington Post (WPO), which was up 1.3% to $658.
News For CECO;COCO;WPO;ESI;EDMC From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
November 24, 2015
13:14 EDTESIJudge grants preliminary approval to $16.9M settlement in ITT Educational suit
A federal judge has granted preliminary approval to an approximately $16.96M cash settlement achieved by Lead Plaintiffs Plumbers and Pipefitters National Pension Fund and Metropolitan Water Reclamation District Retirement Fund with defendants ITT Educational Services, Inc., and two of its officers, Daniel M. Fitzpatrick and Kevin M. Modany.The proposed settlement approved by Judge J. Paul Oetken, of the United States District Court for the Southern District of New York, on Monday, Nov. 23, resolves securities fraud claims asserted under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by the Plumbers and Pipefitters National Fund and Metropolitan Water Retirement Fund against the defendants for alleged material misrepresentations and omissions concerning the company's liabilities under certain risk-sharing agreements it had entered into with third-party student enders of ITT student loans. The proposed $16.96M cash settlement will benefit a putative class of persons and entities who purchased or otherwise acquired ITT Educational Services, Inc., common stock between April 24, 2008, and Feb. 25, 2013. In the order issued on Nov. 23, Judge Oetken also gave authorization for the class notice to be issued to class members. A court hearing will be held on March 8, 2016, to determine whether the settlement should be given final approval and to hear any objections to the settlement.

Sign up for a free trial to see the rest of the stories you've been missing.
I agree to the disclaimer & terms of use