Apollo Education Group Inc (APOL) Shares Soar 27% After Company Agree to be Taken Private for $1.1 Billion


Shares of Apollo Education Group Inc (NASDAQ:APOL) are up over 27% in the pre-market this morning after the company announced that they have reached a $1.1 billion deal to be taken private. The deal was reached by a consortium led by private investment firm The Vistria Group. The acquisition will result in shareholders of Class A and B shares receiving $9.50 in cash per share. Currently in the pre-market the stock is trading at $8.81.

“The Apollo Education Group Board of Directors reviewed strategic alternatives and believes this transaction is in the best interest of all shareholders and strongly supports our transformation efforts,” said Greg Cappelli, Chief Executive Officer of Apollo Education Group. “This new structure will allow Apollo Education Group the flexibility and runway it needs to complete the transformational plan at University of Phoenix, which will enable us to serve our students more effectively during a period of unprecedented volatility within our industry. We will also continue to expand our international operations and remain committed to driving principles of operating excellence.”

We’ve been seeing more and more of this over the years where companies are being taken private. It’s not often that we see deals as large as this though. The stock decreased 1.97% or $0.14 during the last trading session, hitting $6.95. Approximately 27,765 shares traded hands. APOL shares have declined 46.25% since July 2, 2015 and are currently downtrending. It has underperformed the S&P500 by 38.95%.

From a total of 3 analysts covering Apollo Education (NASDAQ:APOL) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $13 while the lowest target price is $8.50. The mean of all analyst targets is $9 which is 29.50% above today’s ($6.95) stock price. Apollo Education was the topic of 5 analyst reports since October 23, 2015 according to the firm StockzIntelligence Inc. BMO Capital Markets maintained shares on January 12 with a “Outperform” rating.

The institutional sentiment decreased to 0.95 in Q2 2015. It’s down 0.15, from 1.1 in 2015Q2. The ratio is negative, as 41 funds sold all their Apollo Education Group Inc shares they owned while 62 reduced their positions. 22 funds bought stakes while 76 increased their total positions. Institutions now own 101.80 million shares which is 9.22% more than the previous share count of 93.20 million in 2015Q2.

Armistice Capital Llc holds 3.32% of its total portfolio in Apollo Education Group Inc, equating to 880,000 shares. Altalis Capital Management Llc owns 295,625 shares representing 1.92% of their total US portfolio. Moreover, Diversified Investment Strategies Llc has 0.87% of their total portfolio invested in the company, equating to 65,625 shares. The California-based First Pacific Advisors Llc has a total of 0.73% of their portfolio invested in the stock. Quinn Opportunity Partners Llc, a New York-based fund reported 133,000 shares owned.

Since April 2, 2015, the stock had 0 insider purchases, and 2 insider sales for a total of $28,591 in net activity. Newton Frederick James sold 1,494 shares worth $16,449.

Apollo Education Group, Inc. is a private education provider. The company has a market cap of $739.46 million. The Firm offers undergraduate, graduate, certificate and non-degree educational programs and services, online and on-campus, principally to working learners in the United States and abroad. It currently has negative earnings. The Company’s divisions are University of Phoenix, Apollo Global and Other.