Education Stock Trend

 

Education services to see more shorting activity - S3 Partners

Jan 31, 202406:16 PST

ATGE−1.60%DUOL+0.10%EDU+2.99%LOPE+1.82%

KEY POINTS:

• Nasdaq 100 futures fall ~1%, S&P 500 down, Dow slightly green
• Euro STOXX 600 index up ~0.3%
• Dollar slips; gold up; crude off; bitcoin down >2%
• U.S. 10-Year Treasury yield falls to ~4.00%

EDUCATION SERVICES TO SEE MORE SHORTING ACTIVITY - S3 PARTNERS

Healthcare educator Adtalem Global's ATGE shares took a beating on Tuesday, falling almost 19% after Safkhet Capital Research went short on the company. And according to Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, many companies in the education services sub-industry could see a surge in short selling activity, with Adtalem leading the pack.

Many stocks in the sector have been facing similar price weakness, with language learning platform Duolingo DUOL and educational service provider New Oriental Education & Technology Group EDU among others being the largest shorts in the sector.

Dusaniwsky notes that in the last thirty days, the sector has seen a net increase of $18 million in short selling, with Duolingo, Adtalem, and Grand Canyon Education LOPE having the largest increase of short selling.

Company-Short selling	Short interest as a percentage of free float shares	Short interest	30-day change shares shorted
Duolingo DUOL	6.25%	$416.28 mln	$23.66 mln
Adtalem Global Education Inc ATGE	3.36%	$76.58 mln	$17.13 mln
Grand Canyon Education Inc LOPE	1.67%	$63.56 mln	$11.88 mln
Bright Horizons Family Solutions BFAM	3.61%	$208.92 mln	$9.55 mln
Udemy Inc UDMY	6.29%	$67.99 mln	$5.97 mln

On the flipside, Tal Education Group TAL, Chegg Inc CHGG and Coursera Inc COUR have seen the most short covering this past month.

Company-Short covering	Short interest as a percentage of free float shares	Short interest	30-day change shares shorted
Tal Education Group TAL	5.55%	$290.31 mln	($44.48 mln)
Chegg Inc CHGG	13.31%	$151.16 mln	($17.79 mln)
Coursera COUR	4.59%	$106.57 mln	($14.31 mln)
Laureate Education Inc LAUR	3.60%	$60.46 mln	($9.10 mln)
Gaotu Techedu Inc GOTU	8.85%	$42.29 mln	($4.99 mln)

(Shristi Achar A)

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