Apollo Gains on DoE Review

[Stocks-to-Watch]

Apollo Group (APOL) rose 1.7% in after hours trading, after filing notice with the Securities and Exchange Commission that it had gotten a clean bill of health for several activities under investigation by the Department of Education.

Apollo, parent company to the University of Phoenix and the largest for-profit educator in the U.S., filed an 8K with the SEC reporting that the university had received an Expedited Final Program Review Determination Letter from the DoE that indicated Apollo had taken the necessary corrective action for breaches in question.

The December review, which included Apollo’s Title IV financial aid programs since 2009, found that the company had initiated or completed acceptable corrective actions for the three issues in question (insufficient documentation that students completed their exit counseling requirements, failure to coordinate non-Title IV resources for packing Title IV funds, and incorrect determination date for return of title IV funds).

Management had previously indicated they expected the DoE review to lack any adverse findings.

“While this may not necessarily be ‘new news,’ we nonetheless believe this to be a positive for the company and expect the stock to react accordingly,” wrote BMO Capital Markets analyst Jeffrey Silber, who maintained his Market Perform rating and $46 price target on Apollo shares.



Original Article Source by Barrons.com