ATGE - Adtalem stock targeted in a new short seller report

2024-01-30 10:09:15 ET

Fahmi Quadir just targeted Adtalem Global Education Inc (NYSE: ATGE) in her latest short-seller report. Shares of the education company opened nearly 20% down on Tuesday.

Fahmi Quadir is betting against Adtalem stock

The short seller known widely as “The Assassin” is convinced that Adtalem faces a bunch of “existential” financial threats.

Her report this morning blasted the for-profit company based out of Chicago, Illinois as “a toxic byproduct of an imperfect higher education system”.

The New York listed firm is wasting tax dollars on ineffective programmes that makes it “completely uninvestable”, Quadir added in her transcript on Tuesday.

She is betting against Adtalem stock also because the schools in its portfolio are leaving many students in debt they can’t pay off “over the course of their lifetime”.

What else isn’t sitting well with the short seller?

Fahmi Quadir also revealed in her short-seller report today that Adtalem brings in over 70% of its revenue from federal student aid. Her transcript reads:

It makes me mad that our money is being abused. And what do executive of these for-profit universities do? They pay themselves very well, and buy back plenty of their stock.

Institutions that Adtalem operates include the Chamberlain University that has graduation rate of 405 and the Walden University with a graduation rate of only 29%.

Quadir is super bearish on Adtalem stock also because it hasn’t disclosed the investigation that the Department of Education has recently launched into the doctoral programmes of its Walden University .

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