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Stock Market & Financial Investment News

News Breaks
October 25, 2013
10:50 EDTEDMC, COCO, ESI, CECO, WPOFor-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
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December 19, 2014
06:53 EDTCECO, COCO, ESIWhitie House unveils college ratings blueprint, Reuters says
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December 18, 2014
16:10 EDTCECOCareer Education intends to divest Le Cordon Bleu Colleges of Culinary Arts
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December 16, 2014
08:54 EDTEDMCEducation Management says court denied motion filed by Marblegate
Education Management announced that the U.S. District Court for the Southern District of New York has denied the motion filed by Marblegate Asset Management and Magnolia Road Capital seeking to preliminarily enjoin the company from consummating its proposed debt restructuring. The court denied the injunction based on, among other things, the balance of equities and the public interest. The court also concluded on a preliminary basis that the plaintiffs are likely to succeed on the claim they have asserted under the Trust Indenture Act. The company respectfully disagrees with that aspect of the opinion and, based on the court's order, plans to move forward promptly with the restructuring.

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