Enrollment Drop Hammers For-Profit Education Sector
01.10.11, 4:34 PM ET
For-profit education stocks plunged on Monday after industry leader, Strayer Education reported a 20% decline in new student enrollment from a year ago.
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The industry, which has faced plenty of government scrutiny of late regarding low loan repayment rates, is likely to see regulatory changes during 2011.
Shares of of Strayer Education plummeted nearly 23% to $118.29 on Monday. Other education stocks responded negatively to the news as well. DeVry Inc. tumbled ten percent to $42.86, while ITT Educational Services fell 11.5% to $57.14.
Apollo Group declined 4.5% to $36.29 ahead of its scheduled earnings report after the close.