For-profit college company shares fell today after ITT Educational Services Inc. and Strayer Education Inc. said student enrollment declined in the second quarter.
ITT Educational sank 15 percent at the close in New York to $42.78, the biggest loss since January 2008, and Strayer slid 12 percent to $79.44, the most in a year. The 13-member Bloomberg Education Index fell 5.1 percent.
The for-profit colleges industry has suffered falling enrollment amid student reluctance to take on more debt and federal and state investigations of recruitment and marketing practices.
ITT’s new student enrollment dropped 9.5 percent, while total student enrollment fell 16 percent, the Carmel, Indiana-based company said today in a statement. Net income declined 42 percent as revenue fell 15 percent.
Total enrollment at Strayer fell 7 percent, the Herndon, Virginia-based company said in a statement. Second-quarter revenue decreased by 11 percent, it said.