Apollo Drops on Rating Cuts After Enrollment Declines
Apollo Group Inc. (APOL), owner of the University of Phoenix, fell the most in two months in New York trading after new enrollment declined for a third straight quarter and two analysts cut their ratings.
Apollo, based in Phoenix, tumbled as much as 12 percent to $18.52, the most since Nov. 7. At 9:57 a.m., the stock was down 11 percent to $18.67. The company, the biggest U.S. for-profit college, had lost 63 percent of its value in the past 12 months before today, while an index of 13 for-profit colleges fell 48 percent.
Morgan Stanley and First Analysis Corp. downgraded the shares to equalweight, the equivalent of a hold rating, from overweight.
Apollo reported yesterday that total enrollment dropped 14 percent while the number of new students signing up for classes fell 15 percent.
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