Laureate Education (Nasdaq: LAUR) – Sell or Short Recommendation Price Target- $16.50.
Event Overview
July 31, 2017 concludes the 180-day lockup period on Laureate Education Inc. (LAUR).
When the lockup period ends for LAUR on 7.31, its pre-IPO shareholders, directors and executives will have the chance to sell 133M shares, previously restricted from trading since the IPO.
(S-1/A)
The potential for a sudden increase in stock available in the open market may cause a significant decrease in the price of Laureate Education shares; just 29M shares of Class A stock are currently trading.
Our firm’s research has shown significant price declines surrounding many IPO lockup expirations, particularly for firms like LAUR with such a large percentage of shares restricted.
We suggest selling or shorting LAUR shares ahead of the event to take full advantage of impending declines. Savvy investors, anticipating the event, often sell early, as well, exacerbating existing price pressure.
Business Overview: Provider of Higher Education Services
Laureate Education, along with its subsidiaries, provides higher education services and programs to students through its universities and additional institutions. The company operates through four segments: Europe, Asia, Middle East and Africa (AMEA), Latin America (LatAM), and Global Products and Services (GPS). For example, Europe and AMEA segments offer professionally oriented undergraduate and graduate degree programs; LatAm is comprised of campus-based institutions that offer undergraduate and graduate degrees. LAUR also provides online and hybrid programs and courses.
Laureate is the largest global network of higher education institutions that grant degrees. Currently, the company has over one million students enrolled in their 71 institutions across 25 countries on over 200 campuses.
The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland. Laureate Education, Inc. is a subsidiary of Wengen Alberta, Limited Partnership.
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