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Perdoceo Education Corp (NASDAQ:PRDO), a $1.67 billion education company with impressive gross profit margins of 83.5% and a "GREAT" financial health rating according to InvestingPro, saw its President and CEO, Todd S. Nelson, recently sell 38,984 shares of the company’s common stock, according to a regulatory filing. The shares were sold at an average price of $24.66, generating total proceeds of $961,345.
The transaction, dated March 20, 2025, was conducted under a Rule 10b5-1 trading plan, which Nelson adopted on August 13, 2024. This plan allows company insiders to set up a predetermined schedule for selling stocks to avoid potential insider trading accusations. The stock currently trades at a P/E ratio of 11.29 and appears slightly undervalued based on InvestingPro’s Fair Value analysis.
Following this transaction, Nelson retains direct ownership of 644,047 shares, which includes 343,848 unvested restricted stock units under the company’s 2016 Incentive Compensation Plan. Each unit represents the right to receive one share of Perdoceo’s common stock.
Nelson’s sale was executed in multiple trades at prices ranging from $24.41 to $24.86, with the reported price reflecting the weighted average. This move comes as part of his ongoing financial strategy, as outlined in his trading plan.
In other recent news, Perdoceo Education Corporation reported better-than-expected financial results for the fourth quarter of 2024. The company achieved an earnings per share (EPS) of $0.50, surpassing analyst expectations of $0.42, and generated revenue of $176.43 million, exceeding the projected $159.8 million. For the full year, Perdoceo’s adjusted EPS rose to $2.29 from $2.10, and the company recorded a net income of $147.6 million. Additionally, the acquisition of the University of St. Augustine for Health Sciences is anticipated to enhance the company’s performance in 2025.
In terms of executive compensation, Perdoceo Education has implemented changes to its incentive structure. The 2025 Annual Incentive Plan (AIP) emphasizes company-wide adjusted operating income and individual performance goals. This plan includes salary increases for key executives, with CEO Todd Nelson receiving a 6.25% raise to $850,000. Meanwhile, CFO Ashish Ghia’s long-term incentive targets have been increased by 20%.
The company’s strategic initiatives and operational efficiencies have contributed to its strong financial performance and growth. Looking ahead, Perdoceo projects an adjusted operating income of $215 million to $235 million for 2025, with expected revenue growth driven by increased enrollments and the positive impact of the St. Augustine acquisition. Analyst feedback from firms such as Alpha IR indicates confidence in the company’s future prospects.
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