Investors Buy High Volume of Call Options on Bridgepoint Education (BPI)

Bridgepoint Education Inc (NYSE:BPI) was the recipient of some unusual options trading activity on Wednesday. Stock traders bought 1,362 call options on the company. This represents an increase of 2,028% compared to the average daily volume of 64 call options.

A number of research analysts have recently commented on the stock. Zacks Investment Research upgraded shares of Bridgepoint Education from a “hold” rating to a “buy” rating and set a $9.50 price target for the company in a research report on Tuesday. Piper Jaffray Companies restated a “hold” rating and set a $13.00 price target on shares of Bridgepoint Education in a research report on Friday, October 27th. Finally, ValuEngine upgraded shares of Bridgepoint Education from a “hold” rating to a “buy” rating in a research report on Monday, October 2nd.

Bridgepoint Education (NYSE:BPI) opened at $8.16 on Friday. Bridgepoint Education has a 1 year low of $7.53 and a 1 year high of $15.85. The company has a market cap of $238.58, a price-to-earnings ratio of 58.29, a PEG ratio of 1.66 and a beta of 2.17.

Bridgepoint Education (NYSE:BPI) last posted its quarterly earnings data on Wednesday, October 25th. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.01. Bridgepoint Education had a net margin of 0.49% and a return on equity of 12.78%. The company had revenue of $119.40 million during the quarter, compared to the consensus estimate of $121.95 million. During the same period in the previous year, the firm posted $0.09 EPS. The firm’s revenue was down 12.6% compared to the same quarter last year. analysts forecast that Bridgepoint Education will post 0.61 EPS for the current year.

Bridgepoint Education announced that its board has initiated a share repurchase program on Friday, November 17th that authorizes the company to buyback 2,100,000 shares. This buyback authorization authorizes the company to purchase shares of its stock through a private placement purchase. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

In other news, CEO Andrew S. Clark sold 54,075 shares of the business’s stock in a transaction on Wednesday, November 15th. The shares were sold at an average price of $9.10, for a total transaction of $492,082.50. Following the completion of the transaction, the chief executive officer now directly owns 146,806 shares in the company, valued at approximately $1,335,934.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Pincus Private Equity Warburg sold 7,562,890 shares of the business’s stock in a transaction on Tuesday, November 21st. The shares were sold at an average price of $7.90, for a total transaction of $59,746,831.00. The disclosure for this sale can be found here. 41.50% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of BPI. Macquarie Group Ltd. bought a new stake in shares of Bridgepoint Education during the 3rd quarter worth $108,000. Highbridge Capital Management LLC bought a new stake in shares of Bridgepoint Education during the 3rd quarter worth $122,000. Wedge Capital Management L L P NC lifted its holdings in shares of Bridgepoint Education by 60.5% during the 3rd quarter. Wedge Capital Management L L P NC now owns 17,525 shares of the company’s stock worth $168,000 after acquiring an additional 6,606 shares during the last quarter. Alliancebernstein L.P. bought a new stake in shares of Bridgepoint Education during the 2nd quarter worth $176,000. Finally, PEAK6 Investments L.P. bought a new stake in shares of Bridgepoint Education during the 3rd quarter worth $232,000. 88.39% of the stock is owned by institutional investors.

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About Bridgepoint Education

Bridgepoint Education, Inc (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services.

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