Pearson (NYSE:PSO) Shares Gap Down – Here’s Why

Pearson plc (NYSE:PSO) gapped down before the market opened on Thursday . The stock had previously closed at $16.68, but opened at $15.91. Pearson shares last traded at $15.89, with a volume of 90,135 shares traded.

Analyst Ratings Changes

A number of research firms have recently commented on PSO. StockNews.com raised Pearson from a “hold” rating to a “buy” rating in a research report on Monday, March 3rd. National Bankshares set a $18.00 price target on Pearson in a research report on Tuesday, February 18th. Finally, The Goldman Sachs Group raised Pearson to a “strong-buy” rating in a research report on Thursday, January 30th.

Pearson Stock Performance

The company has a quick ratio of 1.72, a current ratio of 1.78 and a debt-to-equity ratio of 0.34. The firm has a market capitalization of $10.63 billion, a P/E ratio of 16.97, a P/E/G ratio of 2.65 and a beta of 0.38. The stock has a fifty day moving average of $16.55 and a 200-day moving average of $15.37.

Pearson Increases Dividend

The business also recently declared a semi-annual dividend, which will be paid on Friday, May 16th. Shareholders of record on Friday, March 21st will be paid a $0.2092 dividend. This represents a yield of 1.7%. This is an increase from Pearson’s previous semi-annual dividend of $0.10. The ex-dividend date of this dividend is Friday, March 21st. Pearson’s dividend payout ratio (DPR) is currently 43.62%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership grew its stake in Pearson by 49.5% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 844,228 shares of the company’s stock valued at $13,609,000 after purchasing an additional 279,369 shares in the last quarter. Northern Trust Corp grew its stake in Pearson by 69.0% in the fourth quarter. Northern Trust Corp now owns 705,622 shares of the company’s stock valued at $11,375,000 after purchasing an additional 288,114 shares in the last quarter. Optiver Holding B.V. grew its stake in Pearson by 135.5% in the fourth quarter. Optiver Holding B.V. now owns 495,797 shares of the company’s stock valued at $7,992,000 after purchasing an additional 285,234 shares in the last quarter. Bank of Montreal Can grew its stake in Pearson by 31.6% in the third quarter. Bank of Montreal Can now owns 405,852 shares of the company’s stock valued at $5,536,000 after purchasing an additional 97,443 shares in the last quarter. Finally, ABC Arbitrage SA acquired a new stake in shares of Pearson in the fourth quarter valued at approximately $4,780,000. 2.14% of the stock is currently owned by institutional investors.

Pearson Company Profile

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education.