923K Reasons To Be Bullish On Adtalem Glb Education Stock

benzinga_article
2025.08.28 15:02
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Scott Liles, President of Adtalem Glb Education (NYSE:ATGE), purchased 6,844 shares worth $923,118 on August 27, as reported in a recent SEC filing. Despite a slight decline of 0.23% in share price to $134.27, the company has shown a positive revenue growth of 11.51% as of June 30, 2025. Adtalem's gross margin stands at 56.48%, and its EPS of 1.5 exceeds the industry average. However, it faces challenges with a debt-to-equity ratio of 0.54. The stock appears undervalued with a P/E ratio of 22.17 and a P/S ratio of 2.88, indicating potential buying opportunities.

Scott Liles, President at Adtalem Glb Education (NYSE:ATGE), reported an insider buy on August 27, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled that Liles made a notable purchase of 6,844 shares of Adtalem Glb Education, valuing at $923,118.

At Thursday morning, Adtalem Glb Education shares are down by 0.23%, trading at $134.27.

Delving into Adtalem Glb Education's Background

Adtalem Global Education Inc is an American for-profit educational company that operates various university and educational programs. The company has three segments namely Chamberlain; Walden; and Medical and Veterinary. It derives maximum revenue from Chamberlain segment.

Adtalem Glb Education's Economic Impact: An Analysis

Positive Revenue Trend: Examining Adtalem Glb Education's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.51% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Analyzing Profitability Metrics:

  • Gross Margin: Achieving a high gross margin of 56.48%, the company performs well in terms of cost management and profitability within its sector.
  • Earnings per Share (EPS): Adtalem Glb Education's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.5.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.54, caution is advised due to increased financial risk.

Insights into Valuation Metrics:

  • Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 22.17 is lower than the industry average, indicating potential undervaluation for the stock.
  • Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.88, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 12.67, Adtalem Glb Education's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Uncovering the Importance of Insider Activity

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Adtalem Glb Education's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.