Why Adtalem Stock Tanked Today
Portfolio Pulse from Ryan Gustafson
Adtalem Global Education Inc. (NYSE:ATGE) stock plummeted approximately 25% following a CNBC report that Fahmi Quadir of Safkhet Capital has taken a short position in the company. Quadir criticized Adtalem as 'a toxic byproduct of an imperfect higher education system' and labeled it 'completely uninvestable.' The stock's drop occurred just days before Adtalem's scheduled Q2 earnings report on Feb. 1, where it is expected to report earnings of 98 cents per share on revenue of $372.78 million.
January 30, 2024 | 8:37 pm
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NEGATIVE IMPACT
Adtalem's stock took a significant hit after a negative report by Fahmi Quadir, who has shorted the stock, calling the company 'completely uninvestable' and a negative product of the education system.
The stock's sharp decline is directly tied to the negative sentiment expressed by a notable short-seller, which can influence investor perception and lead to a sell-off. The timing just before the earnings report may exacerbate the impact as investors may have heightened sensitivity to negative news.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100