Adtalem Global Education Inc. ATGE found itself in a tailspin on Tuesday after reports surfaced of prominent short seller, Fahmi Quadir, taking a bearish position against the company.
The Scoop: A CNBC article revealed that Quadir and her firm, Safkhet Capital, publicly disclosed their short position, characterizing the education provider as, “a toxic byproduct of an imperfect higher education system.” Quadir went as far as deeming Adtalem as “completely uninvestable.”
Subsequently, the stock nosedived by approximately 25%, shedding much of the gains it had amassed since October.
This abrupt plunge arrived mere days ahead of the company’s impending second-quarter earnings report, set for Feb. 1. Analysts anticipate Adtalem to declare earnings of 98 cents per share and revenue amounting to $372.78 million.
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ATGE Price Action: Adtalem’s shares cratered by 17.3%, trading at $48.51 as of the time of publication, according to Benzinga Pro.
Image by Oleg Gamulinskii from Pixabay
