Pearson (NYSE:PSO) Sees Strong Trading Volume – Should You Buy?

Pearson plc (NYSE:PSO) saw an uptick in trading volume on Monday . 705,911 shares were traded during mid-day trading, an increase of 73% from the previous session’s volume of 407,606 shares.The stock last traded at $15.07 and had previously closed at $15.36.

Analyst Upgrades and Downgrades

PSO has been the subject of a number of research reports. National Bankshares set a $18.00 price objective on Pearson in a research report on Tuesday, February 18th. StockNews.com upgraded shares of Pearson from a “hold” rating to a “buy” rating in a report on Monday, March 3rd. Finally, The Goldman Sachs Group initiated coverage on shares of Pearson in a research note on Wednesday, March 26th. They issued a “buy” rating on the stock.

Pearson Trading Down 3.0 %

The company has a quick ratio of 1.72, a current ratio of 1.78 and a debt-to-equity ratio of 0.34. The business has a 50-day moving average of $16.56 and a 200-day moving average of $15.56. The stock has a market cap of $9.93 billion, a price-to-earnings ratio of 15.85, a PEG ratio of 2.65 and a beta of 0.42.

Pearson Increases Dividend

The company also recently disclosed a semi-annual dividend, which will be paid on Friday, May 16th. Investors of record on Friday, March 21st will be issued a $0.2092 dividend. The ex-dividend date of this dividend is Friday, March 21st. This represents a yield of 1.7%. This is an increase from Pearson’s previous semi-annual dividend of $0.10. Pearson’s dividend payout ratio is currently 43.62%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of PSO. Arrowstreet Capital Limited Partnership grew its holdings in Pearson by 49.5% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 844,228 shares of the company’s stock valued at $13,609,000 after purchasing an additional 279,369 shares during the last quarter. Northern Trust Corp increased its position in shares of Pearson by 69.0% during the fourth quarter. Northern Trust Corp now owns 705,622 shares of the company’s stock valued at $11,375,000 after purchasing an additional 288,114 shares during the period. Optiver Holding B.V. raised its stake in shares of Pearson by 135.5% in the 4th quarter. Optiver Holding B.V. now owns 495,797 shares of the company’s stock valued at $7,992,000 after buying an additional 285,234 shares in the last quarter. ABC Arbitrage SA acquired a new position in Pearson in the fourth quarter worth about $4,780,000. Finally, FMR LLC lifted its position in shares of Pearson by 20.7% during the 3rd quarter. FMR LLC now owns 275,310 shares of the company’s stock worth $3,736,000 after buying an additional 47,296 shares during the period. Institutional investors own 2.14% of the company’s stock.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education.