Here’s Why Investors are Dumping For Profit Stocks Now

Career Education Corporation (NASDAQ:CECO) reported disappointing numbers for the third quarter with revenues of $431.3 million and net income of $10.6 million ($0.14 per share). Revenues for the same quarter in 2010 were $524.10 million and net income was $26.1 million ($0.33 per share).

Operating income was hit by charges for legal expenses, legal settlements, and bad debts on student payment plans. Further, the student population at the end of September was down 12% and new enrolments during this quarter were off by 22% versus the same quarter last year.

The poor results claimed a casualty: CEO Gary E. McCullough. The Board has appointed Steven H. Lesnik, who is Chairman, as President and Chief Executive Officer and Board member Leslie T. Thornton to the newly created position of Lead Independent Director to ensure stability during the transition to new leadership. The Company will commence a comprehensive search for a new Chief Executive Officer.

Here’s how for-profit stocks are reacting to the news:

  • Career Education Corp. (NASDAQ:CECO): The shares recently traded at $9.60, down $6.35, or 39.81%. Its market capitalization is $732.19 million. They have traded in a 52-week range of $9.20 to $27.60. Volume today was 6,380,028 shares versus a 3-month average volume of 798,762 shares. The company’s trailing P/E is 4.50, while trailing earnings are $2.13 per share. About the company: Career Education Corporation provides private, for-profit postsecondary education in the United States and Canada. The Company’s schools offer a variety of bachelor’s degree, associate degree, and non-degree programs, with a core curricula of information technologies, visual communication and design technologies, business studies, and culinary arts. Get the most recent company news and stock data here >>
  • Apollo Group Inc. (NASDAQ:APOL): The shares recently traded at $44.81, down $1.11, or 2.42%. Its market capitalization is $5.85 billion. They have traded in a 52-week range of $33.75 to $54.23. Volume today was 712,913 shares versus a 3-month average volume of 2,005,100 shares. The company’s trailing P/E is 11.10, while trailing earnings are $4.04 per share. About the company: Apollo Group, Inc. provides higher education programs for working adults. The Company provides educational programs and services at the high school, undergraduate, and graduate levels online and on-campus through subsidiaries. Get the most recent company news and stock data here >>
  • American Public Education, Inc. (NASDAQ:APEI): The shares recently traded at $33.74, down $1.01, or 2.91%. Its market capitalization is $601.65 million. They have traded in a 52-week range of $26.15 to $49.29. Volume today was 15,607 shares versus a 3-month average volume of 244,520 shares. The company’s trailing P/E is 19.39, while trailing earnings are $1.74 per share. About the company: American Public Education Inc. provides online postsecondary education directed at the needs of the military and public service communities. The Company offers a wide range of degree programs and certificate programs including national security, military studies, intelligence, homeland security, criminal justice, technology, business administration and liberal arts. Get the most recent company news and stock data here >>
  • DeVry, Inc. (NYSE:DV): The shares recently traded at $36.31, down $1.61, or 4.25%. Its market capitalization is $2.46 billion. They have traded in a 52-week range of $34.24 to $66.85. Volume today was 301,237 shares versus a 3-month average volume of 1,141,330 shares. The company’s trailing P/E is 8.09, while trailing earnings are $4.49 per share. The company pays a dividend of $0.24 per share for a dividend yield of 0.60%. About the company: DeVry, Inc. owns and manages higher education systems throughout North America. The Institutions offers various degrees in a wide range of disciplines, including associate, bachelor’s and master’s degree programs in technology; healthcare technology; business and management, as well as online secondary education to school districts and medical education. Get the most recent company news and stock data here >>
  • Strayer Education Inc. (NASDAQ:STRA): The shares recently traded at $78.58, down $4.07, or 4.92%. Its market capitalization is $913.26 million. They have traded in a 52-week range of $69.34 to $165.73. Volume today was 55,785 shares versus a 3-month average volume of 265,324 shares. The company’s trailing P/E is 8.07, while trailing earnings are $9.74 per share. The company pays a dividend of $4.00 per share for a dividend yield of 4.60%. About the company: Strayer Education, Inc. is the holding company of Strayer University, an institution of higher learning. Strayer University offers working adults undergraduate and graduate degree programs in business administration, accounting, information technology, education and public administration. Strayer offers courses in the eastern United States and through the Internet. Get the most recent company news and stock data here >>
  • Lincoln Educational Services Corporation (NASDAQ:LINC): The shares recently traded at $8.14, down $0.76, or 8.54%. Its market capitalization is $184.13 million. They have traded in a 52-week range of $7.29 to $19.89. Volume today was 100,632 shares versus a 3-month average volume of 339,073 shares. The company’s trailing P/E is 3.27, while trailing earnings are $2.49 per share. The company pays a dividend of $1.00 per share for a dividend yield of 10.70%. About the company: Lincoln Educational Services Corporation provides career-oriented post-secondary education. The Company offers recent high school graduates and working adults degree and diploma programs at its campuses in automotive technology, health sciences, skilled trades, business and information technology and spa and culinary. Get the most recent company news and stock data here >>

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