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Perdoceo Education Corp (NASDAQ:PRDO) President and CEO Todd Nelson recently sold shares of the company, according to an SEC filing. On January 2, Nelson executed a sale of 12,472 shares of common stock at a weighted average price of $26.29, amounting to a total of $327,888. The sales were part of a pre-arranged Rule 10b5-1 trading plan, initially adopted in August 2024. The transaction comes as PRDO shows impressive financial strength, with InvestingPro analysis indicating the stock is currently undervalued, supported by an outstanding 83.46% gross profit margin and a 52.66% return over the past year.
In the same filing, it was noted that Nelson also exercised options to acquire 12,472 shares at $13.80 each, valued at $172,113. Following these transactions, Nelson holds 615,697 shares directly, which includes 424,451 unvested restricted stock units. These units were granted under Perdoceo's 2016 Incentive Compensation Plan, each representing the right to receive one share of common stock upon vesting. InvestingPro subscribers can access detailed insider trading patterns and seven additional ProTips highlighting PRDO's strong financial position, including its robust cash flow coverage and healthy balance sheet metrics.
In other recent news, Perdoceo Education Corporation has reported a strong third quarter in 2024, with earnings and enrollments exceeding expectations. The company's net income was $38.3 million, with adjusted earnings of $0.59 per share, surpassing the projected range of $0.52 to $0.54. Furthermore, enrollments at Colorado Technical University and American InterContinental University System significantly increased.
On the horizon, the company plans to acquire the University of St. Augustine, a move anticipated to enhance Perdoceo's offerings and contribute positively to operating income from 2025. In addition, Perdoceo Education declared a quarterly dividend of $0.13 per share.
The company's adjusted operating income for 2024 is projected to be between $188 million and $191 million. Despite anticipated lower revenue at Colorado Technical University and decreased enrollments at the American InterContinental University System, strong corporate engagement and high student retention rates are expected to offset these challenges. These are some of the recent developments in the company's operations.
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