In a recent move, 325 Capital LLC, a significant shareholder in American Public Education Inc. (NASDAQ:APEI), has increased its position in the company by purchasing additional shares. The transactions, which took place over two days, saw 325 Capital LLC acquire a total of 38,439 shares, adding up to an investment of approximately $617,777, with individual share prices ranging between $16.03 and $16.11.
The first transaction occurred on August 27, 2024, with 18,439 shares purchased at an average price of $16.03, while the following day, 20,000 shares were bought at an average price of $16.11. These purchases add to the already substantial holdings of 325 Capital LLC in American Public Education Inc., a company known for providing online and on-campus postsecondary education.
The filings also indicate that 325 Capital LLC is directly linked to several individuals, including Michael D. Braner, Daniel M. Friedberg, and Anil K. Shrivastava, all of whom are Managing Members of the company. Moreover, Braner holds a position on the Board of Directors of American Public Education Inc., which may deem the other reporting persons as directors by deputization.
This increase in ownership by 325 Capital LLC and its affiliates demonstrates a continued commitment to and confidence in American Public Education Inc. As these transactions are publicly reported, they provide investors and the market with insight into the actions of significant shareholders within the company.
In other recent news, American Public Education (APEI) has been the subject of an adjusted outlook by Truist Securities. The firm reduced its price target for APEI from $20 to $15, while maintaining a Hold rating. This follows APEI's recent Q2 2024 financial results, which surpassed expectations, but were accompanied by a lower third-quarter guidance. The company's full-year forecast, however, remained unchanged.
APEI's Q2 2024 financial results showcased a 3.9% year-over-year revenue increase to $152.9 million, and a significant 24% uptick in adjusted EBITDA to $10.9 million. Despite a non-cash impairment charge resulting in a diluted loss per share of $0.06, APEI reiterated its full-year guidance. Furthermore, it plans to expand Rasmussen's campus presence to meet healthcare role demands.
These developments are recent and reflect a consistent performance for APEI. The company has reported consistent growth with its adjusted EBITDA meeting or exceeding guidance for the seventh consecutive quarter. Despite challenges such as a non-cash impairment charge of $64 million, APEI remains committed to its growth strategy, focusing on expanding and stabilizing Rasmussen, and addressing the increasing demand for nursing and clinical roles.
InvestingPro Insights
In light of the recent share acquisitions by 325 Capital LLC, investors may find the following InvestingPro Insights particularly informative. American Public Education Inc. (NASDAQ:APEI) has shown notable movements in its financial metrics and stock performance, as reflected in real-time data from InvestingPro.
InvestingPro Data reveals a market capitalization of $292.43 million, indicating a modest company size that could be poised for growth. The P/E ratio, which currently stands at 66.37, suggests that the market has high expectations for future earnings. However, this is tempered by a more reasonable forward-looking P/E ratio (last twelve months as of Q2 2024) of 47.57. The company's PEG ratio for the same period is 0.6, hinting at potentially undervalued stock when considering its earnings growth rate.
Among the notable InvestingPro Tips, American Public Education Inc. boasts a perfect Piotroski Score of 9, reflecting strong financial health. Furthermore, analysts predict that the company will be profitable this year, which may be driving investor confidence as evidenced by the recent share purchases by 325 Capital LLC. Additionally, the stock has experienced a significant return over the last year, with a 187.16% price total return, underscoring the substantial growth trajectory that has likely caught the attention of investors.
For those interested in further insights, InvestingPro offers additional tips for American Public Education Inc., which can be explored at: https://www.investing.com/pro/APEI. These tips could provide a deeper understanding of the company's financial position and future prospects.
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