Laureate Education’s shares take a 9% hit on news of secondary offering

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Laureate Education Intrinsic Value – Laureate Education ($NASDAQ:LAUR) is a publicly traded company that provides higher education services. On Wednesday, the company’s shares took a 9% hit after it was announced that certain existing stockholders were selling 32.84 million shares of common stock in an underwritten secondary offering. The company will not receive any proceeds from the sale of the shares being offered by the Selling Stockholders. This news caused Laureate Education’s stock to drop sharply. Some investors may be concerned that the company is not doing well if existing stockholders are selling their shares.

However, it is also possible that the stockholders are simply taking advantage of the current high stock price. Wednesday’s drop brings it back down to earth somewhat, but the company is still trading at a high level compared to its recent history.

Market Price

The stock opened at $10.4 and closed at $10.8, a 11.3% plunge from the previous closing price of $12.2. The news of the secondary offering came as a surprise to investors, who had been expecting the stock to continue its upward trend. The secondary offering will dilute the existing shareholders’ ownership, and it is not clear why the company is doing it at this time.

It may be to raise funds for expansion or to pay down debt. Whatever the reason, investors are clearly not happy about it, and the stock price reflects that.

VI Analysis – Laureate Education Intrinsic Value

Laureate Education, Inc. is an international network of higher education institutions. The company offers undergraduate, graduate, and professional degrees as well as non-degree programs through its institutions. The company’s fundamentals reflect its long term potential. The fair value of Laureate Education’s shares is around $8.7, calculated by VI Line.

However, the shares are currently traded at $10.8, indicating that the stock is overvalued by 24%.

VI Peers

The competition between Laureate Education Inc and its competitors is intense. Each company is vying for market share in the international education market. They are all trying to attract the best students and offer the most competitive programs. The competition is good for students because it drives down prices and improves the quality of the programs.

– OneSmart International Education Group Ltd ($NYSE:ONE)

Wisdom Education International Holdings Co Ltd is a provider of educational services in China. The company operates through three segments: K-12 Education, Vocational Education, and Online Education. It offers educational programs and services for students from kindergarten to grade 12, as well as for adults and working professionals. The company also provides online education services through its website and mobile app. Wisdom Education International Holdings Co Ltd is headquartered in Beijing, China.

Summary

Investors may want to consider Laureate Education as a potential investment. The company is a leading provider of higher education and has a strong market position. The company’s shares took a hit on news of a secondary offering, but the stock price has since recovered. Laureate Education is a well-established company with a strong track record and is well-positioned to continue growing in the future.