Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Steven Cohen Boosts SAC’s Stake in ITT Educational Services, Inc. (ESI)

Steven Cohen has stepped up his interest in ITT Educational Services, Inc. (NYSE:ESI). The billionaire investor has increased his fund’s stake from 10,953 to 1.2 million shares, according to a recent filing with the Securities and Exchange Commission. As a result, SAC Capital holds approximately 5% of the company’s common stock.

Steven Cohen

Chuck Royce, the manager of Royce & Associates, is also bullish on ITT Educational Services, Inc. (NYSE:ESI). According to the fund’s latest 13F report, Royce has increased his fund’s stake by 3% to some 401,000 shares valued at $13.4 million. Another fund that is betting on this stock is Ardsley Partners. Its manager, Philip Hempleman, has increased its investment by 41% to 600,000 shares reportedly worth a little over $20 million.

ITT Educational Services, Inc. (NYSE:ESI) provides postsecondary degree programs in the United States. The company has a market cap of $725 million and does not pay a dividend. The shares are traded at a Price to Earnings (P/E) ratio of 12.3 and has a beta of 1.75, which makes them rather volatile. For the three months ending December 21, 2013, ITT Educational posted revenues of $262 million and earnings of $1.18 per diluted share. It is expected to generate revenues of $251 million and earnings of $0.72 per share in the current quarter.

Steven Cohen has made some other bold investments recently. He has massively increased SAC’s stake in DeVry Education Group Inc (NYSE:DV). Whereas SAC previously held a little over 27 thousand shares, it now owns 3.2million shares or 5% of the company’s total number of shares outstanding. Another recent move that caught our eye is the 22-fold increase in its holding of Lumber Liquidators Holdings Inc (NYSE:LL). SAC Capital now holds 1.4 million shares or 5% of the common stock of the company.

Disclosure: none

Recommended reading:

Mario Gabelli Initiates 8% Stake in Zale Corporation (ZLC)

Hedge Fund News: Dmitry Balyasny, Daniel Loeb & SAC Capital Advisors

David Kim’s Ghost Tree Capital Loves These Healthcare Stocks

Loading Comments...