California-based Global IMC fully exited its position in Adtalem Global Education (ATGE +2.71%) in the third quarter, a move reflecting a $6.48 million net position change, according to a November 14 SEC filing.
What Happened
According to an SEC filing on November 14, Global IMC LLC sold all its 50,933 shares of Adtalem Global Education (ATGE +2.71%) during the third quarter. The estimated value of the trade was nearly $6.5 million based on the quarterly average price.
What Else to Know
Global IMC's Adtalem stake had accounted for 1.7% of the fund’s assets in the previous quarter.
Top holdings after the filing:
- NYSE: KGC: $3.76 million (15.9% of AUM)
- NYSE: HBM: $3.54 million (15.0% of AUM)
- NASDAQ: TSEM: $3.45 million (14.6% of AUM)
- NASDAQ: IREN: $3.45 million (14.6% of AUM)
- NYSE: EGO: $3.33 million (14.1% of AUM)
As of Friday, shares of Adtalem were priced at $100.60, up about 14% in the past year and only slightly underperforming the S&P 500's roughly 16.5% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Friday) | $100.60 |
| Market capitalization | $3.7 billion |
| Revenue (TTM) | $1.83 billion |
| Net income (TTM) | $247.49 million |
Company Snapshot
- Adtalem Global Education provides postsecondary education and workforce solutions through Chamberlain University, Walden University, and medical/veterinary schools, with offerings in nursing, health professions, medical, veterinary, and online degree programs.
- The company generates revenue primarily from tuition and fees for degree and non-degree programs, leveraging a multi-segment approach that includes both on-campus and online education services.
- It serves students seeking professional degrees in healthcare, education, business, and public service, with a focus on working adults and individuals pursuing advanced credentials.
Adtalem Global Education Inc. is a leading provider of workforce-focused education, operating across nursing, health professions, and medical and veterinary segments. The company leverages a diversified platform of institutions to address demand for skilled professionals in critical fields. Its scale and multi-modal delivery position it to serve a broad base of students and adapt to evolving industry needs.
Foolish Take
This stock had surged nearly 70% earlier in the year before rolling over sharply, and the exit appears to have landed right as sentiment shifted from enthusiasm to scrutiny. In a portfolio where the largest holdings each command more than 14% of assets, a 1.7% position was never a cornerstone. That makes it easier to walk away once the narrative turns.
In its latest quarter, Adtalem Global Education reported revenue of $462.3 million, up 10.8% year over year, while adjusted EPS climbed 35.7% to $1.75. Total enrollment rose 8%, extending a multi-quarter growth streak across Chamberlain and Walden, and adjusted EBITDA increased nearly 16% to $112 million. Nevertheless, shares crashed following the release amid concerns of lighter-than-anticipated growth and broader market concerns. The takeaway is uncomfortable but useful. Strong fundamentals do not guarantee a smooth stock, and when growth expectations reset, even good numbers can stop being enough.
Glossary
Exited position: When an investor sells all holdings in a particular security or company.
Net position change: The total increase or decrease in the value of an investment position after a transaction.
Exposure: The amount of money invested in a particular asset, sector, or market, indicating risk level.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
13F filing: A quarterly report filed by institutional investment managers to disclose their equity holdings.
Stake: The ownership interest or share an investor holds in a company or fund.
Quarter over quarter: A comparison of financial or operational results from one fiscal quarter to the next.
Liquidation: The process of closing a fund or business by selling assets to return cash to investors.
Multi-segment approach: A business strategy that operates across multiple distinct divisions or markets.
Multi-modal delivery: Offering products or services through various methods, such as online and in-person formats.
Workforce solutions: Services or programs designed to train or place individuals in jobs, often focused on specific industries.
TTM: The 12-month period ending with the most recent quarterly report.
