Here’s Why These For-Profit Education Stocks Got Drop Kicked
DeVry (NYSE:DV) dropped 3.62 percent on September 25, falling in line with year to date losses of 40.21 percent. The private, for-profit university is being moved from the S&P 500 over to the S&P MidCap 400, in order to make room for incoming Pentair (NYSE:PNR).
ITT Educational Services (NYSE:ESI) fell 7.31 percent on Tuesday. The company’s shares have lost 34.01 percent this year through yesterday. Strayer Education (NASDAQ:STRA) is also down 5.96 percent for the day.
Bridgepoint Education (NYSE:BPI) is down 6.16 percent on news that the company is cutting 450 admissions jobs. The company’s Ashford University was denied accreditation from the Western Association of Schools and Colleges in July, which caused shares to plummet around 50 percent by later in the month.
Private, for-profit education could be taking a hit as free online education tools become more ubiquitous. For-profit colleges were slammed by a U.S. Senate report recently. Among other things, the report cited a 64 percent dropout rate in associate degree programs, and said that the companies examined spent 22.4 percent of all revenue on marketing or recruiting activity.
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