Marcelo Cardoso, the Chief Operating Officer of Laureate Education, Inc. (NASDAQ:LAUR), recently sold 12,775 shares of the company's common stock. The sale, executed on November 5, was conducted at a weighted average price of $17.368 per share, resulting in a total transaction value of approximately $221,876. Following this transaction, Cardoso holds 360,234 shares directly. According to a footnote in the filing, the sale was made to cover taxes related to previous vestings of restricted and performance stock unit awards during 2023 and 2024.
In other recent news, Laureate Education reported a strong Q3 performance, resulting in a raised outlook for 2024. The company's Q3 revenue reached $369 million, with an adjusted EBITDA of $91 million. This success was attributed to a 12% increase in new enrollments in Peru and 4% growth in Mexico. Consequently, Laureate Education revised its 2024 revenue and adjusted EBITDA projections upwards by $50 million and $6 million, respectively.
The company also announced a new $100 million stock repurchase program, indicating a continued focus on shareholder returns. The total enrollments for 2024 are expected to be around 470,000 students. Furthermore, Laureate Education anticipates Q4 2024 revenue to range between $408 million and $413 million, with an adjusted EBITDA of $138 million to $142 million.
These developments follow the company's projected 5% growth in revenue and 7% to 8% increase in adjusted EBITDA for 2024. Despite facing potential challenges such as currency headwinds from a weaker Mexican peso and increased competition due to expansion of public university capacity in Mexico, Laureate Education remains optimistic, backed by consistent growth in new enrollments and a favorable macroeconomic environment in Peru.
InvestingPro Insights
As Laureate Education's COO Marcelo Cardoso sells shares to cover tax obligations, the company's stock performance and financial metrics paint an intriguing picture for investors. According to InvestingPro data, Laureate Education's stock is trading near its 52-week high, with a price that's 99.15% of its peak. This aligns with the company's strong recent performance, boasting a 16.33% return over the past month and an impressive 45.74% return over the last year.
The company's financial health appears robust, with a revenue of $1.55 billion in the last twelve months as of Q3 2023, representing a 9.25% growth. Laureate's profitability is also noteworthy, with a gross profit margin of 36.55% and an operating income margin of 23.26% for the same period.
InvestingPro Tips highlight that Laureate Education operates with a moderate level of debt and that its cash flows can sufficiently cover interest payments, suggesting financial stability. Additionally, analysts predict the company will be profitable this year, which is consistent with its current P/E ratio of 11.91, indicating a potentially undervalued stock relative to earnings.
For investors seeking a deeper understanding of Laureate Education's prospects, InvestingPro offers 10 additional tips, providing a comprehensive analysis of the company's financial position and market performance.
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