Please ensure Javascript is enabled for purposes of website accessibility

Why Laureate Education Stock Popped Over 15% Today

By Jon Quast - Updated Apr 30, 2021 at 4:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The investigation into its nursing program has been dropped.

What happened

Shares of Laureate Education (LAUR 1.06%) popped on Friday, rising 15.8% for the session. The stock rose because the U.S. Department of Justice (DOJ) has decided to drop an investigation involving the company.

So what

Laureate Education offers online degree programs in various countries around the world. In the U.S., it goes by Walden University. It plans to divest this part of the business soon, but for now, it still belongs to the company and there's been a concern regarding a potential investigation from the DOJ.

A businesswoman draws an exponential growth curve over a bar chart displayed on a transparent touchscreen.

Image source: Getty Images.

According to filings with the Securities and Exchange Commission (SEC), there were questions as to whether Walden University's nursing program was making false claims. Credibility is a big issue in the online degree space, so the potential fallout was big. However, in today's SEC filing, Laureate Education disclosed that the DOJ is declining to look into the matter further.

Now what

With this issue now behind it, Laureate Education shareholders can turn their attention back to the financial news. The company's upcoming financial results for the first quarter of 2021 are scheduled for release on May 6 before the market opens. Revenue in 2020 was roughly $1 billion, which was down 15% year over year. However, for Q1, management said in February it is optimistic its declines are slowing and that it expects business to be essentially flat from the same period last year.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Laureate Education, Inc. Stock Quote
Laureate Education, Inc.
$11.47 (1.06%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.