On February 13, 2026, First Sabrepoint Capital Management LP disclosed a new position in Adtalem Global Education (NYSE:ATGE), acquiring 135,000 shares in an estimated $13.97 million trade. What happened According to a SEC filing dated February 13, 2026, First Sabrepoint Capital Management LP initiated a new position in Adtalem Global Education (NYSE:ATGE), acquiring 135,000 shares. The estimated transaction value was $13.97 million. What else to know This is a new position, now representing 5.39% of ...

Adtalem Global Education (ATGE) has been on a downward spiral lately with significant selling pressure. After declining 20.9% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a ...

Core Viewpoint - Adtalem Global Education is rebranding to Covista, signifying a major transformation aimed at becoming the largest healthcare educator in the U.S. and a vital part of the healthcare workforce pipeline [1] Company Summary - The rebranding reflects a four-year transformation process undertaken by the company [1] - Covista will begin trading under the ticker symbol CVSA on the New York Stock Exchange starting February 24, 2026 [1] - The name change is described as more than just a rebrand; it acknowledges the company's achievements and the challenges it aims to address in the healthcare sector [1]

Industry Overview - The Zacks Schools industry is facing significant challenges, including a declining traditional student base, increased competition from public and nonprofit institutions, and rising compliance costs due to tighter regulatory oversight [1][4][5] - The industry comprises for-profit education companies offering various undergraduate, graduate, and specialized programs, focusing on career-oriented education in fields such as healthcare, technology, and skilled trades [3] Current Challenges - Margin pressures are intensifying due to rising costs in faculty, support services, marketing, and technology, coupled with aggressive enrollment competition [4] - Operational challenges include high compliance costs and vulnerability to enrollment fluctuations, which can significantly impact operating income [5][6] Demand Trends - There is a renewed demand for workforce-oriented programs, particularly in healthcare, cybersecurity, and skilled trades, driven by employers prioritizing job-ready skills [7][9] - The U.S. healthcare sector is experiencing a shortage of skilled professionals, creating opportunities for education providers to align their programs with workforce needs [8][9] Industry Consolidation - The sector is witnessing consolidation, with larger players acquiring smaller institutions to expand program offerings and achieve scale advantages [10] - Recent policy changes, such as the "Workforce Pell" initiative, are expected to enhance enrollment and pricing power for accredited programs [11] Technology Integration - The adoption of technology and digital learning platforms is becoming a key differentiator for for-profit colleges, enhancing student engagement and operational efficiency [12] Financial Performance - The Zacks Schools industry currently ranks 153 out of over 250 Zacks industries, indicating it is in the bottom 37% in terms of performance [13][14] - The industry's earnings estimates for 2026 have decreased slightly to $1.86 per share, reflecting a loss of confidence in earnings growth potential [15] Stock Performance - The industry has underperformed the S&P 500 but has fared better than the broader Zacks Consumer Discretionary sector over the past year, with a collective loss of 4.5% [17] Valuation Metrics - The industry is currently trading at a forward P/E ratio of 13.68X, significantly lower than the S&P 500's 23.24X and the sector's 17.66X [20] Notable Companies - **American Public Education, Inc. (APEI)**: Focused on military and healthcare education, APEI has seen strong enrollment growth and is expected to grow earnings by 106.5% in 2026 [27][28] - **Adtalem Global Education Inc. (ATGE)**: Gaining from enrollment momentum in healthcare education, ATGE's earnings are projected to grow 18% in fiscal 2026 [30][31] - **Stride, Inc. (LRN)**: Provides technology-driven online education, with a focus on K-12 education, and is expected to see earnings growth of 3.2% in fiscal 2026 [34][35]

Adtalem Global Education Inc. (ATGE) Stock Analysis: A Closer Look at Recent Performance and Growth PotentialAdtalem Global Education Inc. (NYSE: ATGE) is a leading provider of educational services, offering a wide range of programs across various fields such as healthcare, business, and technology. The company operates several institutions, including Chamberlain University and Ross University School of Medicine. Adtalem competes with other educational service providers like Grand Canyon Education and Stray ...

Core Viewpoint - The article highlights Adtalem Global Education (ATGE) as a promising growth stock, supported by its favorable Growth Score and Zacks Rank, indicating strong potential for outperformance in the market [2][11]. Earnings Growth - Adtalem has a historical EPS growth rate of 22.4%, with projected EPS growth of 18% for the current year, significantly surpassing the industry average of 11.5% [5]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 0.69, indicating it generates $0.69 in sales for every dollar in assets, which is higher than the industry average of 0.68, showcasing better efficiency [6]. Sales Growth - Adtalem's sales are expected to grow by 7.6% this year, compared to the industry average of 6.7%, indicating a strong sales growth outlook [7]. Earnings Estimate Revisions - The current-year earnings estimates for Adtalem have been revised upward, with the Zacks Consensus Estimate increasing by 0.3% over the past month, reflecting positive sentiment [9]. Overall Positioning - With a Zacks Rank of 2 and a Growth Score of A, Adtalem is well-positioned for potential outperformance, making it an attractive option for growth investors [11].

Core Viewpoint - Adtalem Global Education (ATGE) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [5]. Recent Performance and Outlook - Adtalem's earnings estimates have been revised upward, with the Zacks Consensus Estimate for the fiscal year ending June 2026 projected at $7.87 per share, showing a 1.2% increase over the past three months [9]. - The upgrade to Zacks Rank 2 reflects an improvement in Adtalem's underlying business, suggesting that investor sentiment may lead to higher stock prices [6][11]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [10][11].

Core Viewpoint - Adtalem Global Education (ATGE) shows potential for significant upside, with a mean price target of $158.25 indicating a 46.8% increase from its current price of $107.78 [1] Price Targets - The average price target for ATGE ranges from a low of $125.00 to a high of $175.00, with a standard deviation of $22.71, suggesting variability in analyst estimates [2] - The lowest estimate indicates a 16% increase, while the highest suggests a 62.4% upside [2] Analyst Sentiment - Analysts exhibit strong agreement on ATGE's ability to report better earnings than previously predicted, which supports the expectation of stock upside [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 0.3%, with one estimate moving higher and no negative revisions [12] Zacks Rank - ATGE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Price Movement Implications - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]

Core Insights - Adtalem Global Education reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.19 per share, and showing an increase from $1.81 per share a year ago, resulting in an earnings surprise of +11.21% [1] - The company achieved revenues of $503.39 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.17% and up from $447.73 million year-over-year [2] - Adtalem's stock has increased approximately 11.4% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.09 on revenues of $488.26 million, while for the current fiscal year, the estimate is $7.85 on revenues of $1.92 billion [7] - The estimate revisions trend for Adtalem was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Schools industry, to which Adtalem belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Nerdy Inc., is expected to report a quarterly loss of $0.06 per share, reflecting a year-over-year change of +33.3%, with revenues projected at $45.71 million, down 4.8% from the previous year [9]

Financial Data and Key Metrics Changes - Total revenue increased by 12.4% to $503.4 million, driven by all three segments [17] - Adjusted EBITDA grew to $154.9 million, up 23.9% compared to the prior year [18] - Adjusted earnings per share rose to $2.43, a 34.3% increase year-over-year [19] - Operating cash flow generation for the trailing twelve months was $428 million, up $146 million from the previous year [20] Business Line Data and Key Metrics Changes - Chamberlain reported revenue of $183.8 million, a 1.6% increase, but total student enrollment declined by 1% [22] - Walden's revenue increased by 27% to $217.6 million, with total student enrollment up 13% [23] - Medical and Veterinary segment revenue was $102 million, a 6.9% increase, with adjusted EBITDA rising by 17.6% [25] Market Data and Key Metrics Changes - Total enrollment grew over 6% to 97,000 students, marking the tenth consecutive quarter of enrollment growth [4][7] - Chamberlain's pre-licensure BSN programs have seen growth for 14 consecutive quarters, while post-licensure programs faced declines [22] - Walden's growth was particularly strong in behavioral sciences and nursing programs [32] Company Strategy and Development Direction - The company is focused on addressing the healthcare workforce crisis by expanding capacity and creating new revenue streams [7] - A disciplined, returns-focused approach to capital allocation is being maintained, with $165 million deployed for share repurchases [4] - The upcoming Investor Day will outline a multi-year growth framework [7][47] Management's Comments on Operating Environment and Future Outlook - The healthcare workforce crisis is intensifying, with significant gaps expected to deepen, particularly in rural and underserved areas [6][7] - Management remains confident in achieving full-year revenue guidance of 6%-8.5% growth and has raised adjusted EPS guidance to 17%-20% growth [4][27] - The company expects application growth at Chamberlain to translate into future enrollment growth [27] Other Important Information - The company has approximately $728 million remaining on its current share repurchase authorization [4] - Adjusted EBITDA margin expanded by 290 basis points to 30.8% [18] - The one-week academic calendar shift contributed an additional $18 million in revenue for Walden in Q2 [17][26] Q&A Session Summary Question: Can you provide insights on Walden's growth and market share? - Management noted that growth is consistent across programs, particularly in behavioral sciences and nursing, indicating potential market share gains [32] Question: What is the status of the partnership with Sallie Mae regarding loan caps? - Management confirmed they are working on definitive documentation for the partnership and are optimistic about its implications for the portfolio [33] Question: Can you elaborate on Chamberlain's enrollment trends and lead times? - Management acknowledged recent improvements in application volumes and expressed confidence in returning to positive enrollment growth by the fall cycle [39][40] Question: What factors could lead to exceeding the high end of revenue guidance? - Management indicated that quicker recovery at Chamberlain and acceleration in the Med Vet segment could contribute to exceeding guidance [42]