K12's Stock Rallies After DeVos Confirmed As Secretary Of Education
Shares of K12 Inc. rallied 1% in afternoon trade Tuesday, after Vice President Pence broke a tie to confirm Betsy DeVos as the next Secretary of Education. "While somewhat of a controversial choice, we believe this appointment will be positive for the private sector (for-profit) education sector, specifically in the K-12 segment where Ms. Devos has been a strong proponent of school reform, particularly charter schools," Analyst Jeffrey Silber at BMO Capital Markets wrote in a note to clients. "This could be a positive for K12 Inc., which helps to manage virtual charter schools." K12's stock has lost 8.1% since closing at a 2 1/2-year high of $20.19 on Jan. 30, but was still up 66% since the election. Among shares of other for-profit education companies, Career Education Corp.'s slipped 0.8% Tuesday but has climbed 32% since the election; DeVry Education Group Inc.'s shed 2% on Tuesday but has run up 38% since the election; and Capella Education Co.'s dropped 1.1% Tuesday, but has rallied 12% since the election. Meanwhile, the S&P 500 was little changed Tuesday, but has gained 7.2% since the election.
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