Back to top

Analyst Blog

Zacks Equity Research

DeVry Board Approves $100mn Buyback


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

For-profit education company DeVry, Inc. (DV - Analyst Report) recently announced that its board of directors has authorized a new $100 million share repurchase program. The board authorized DeVry to repurchase up to $100 million shares through the end of 2014. The buyback will be carried out using the available cash or borrowings.

The new plan will be DeVry’s eighth share repurchase program, which is schedule to be effective after the completion of the existing buyback program.

Also recently, DeVry announced plans of restructuring its board of directors. The company nominated Dr. Alan G. Merten for the director’s post, replacing the current board member Julia A. McGee. The latter informed the Board about her unwillingness to contest for re-election once her current term expires. The board will recommend shareholders to vote for Merten at the upcoming annual general meeting of shareholders in early November.

Our Recommendation

We currently have an Underperform recommendation on DeVry. The stock carries a Zacks #5 Rank (a short-term ‘Strong Sell’ rating).

DeVry’s fourth quarter performance was dismal. Both top and bottom lines declined on a sequential as well as year-over-year basis. DeVry’s fourth quarter 2012 earnings of 47 cents per share declined 56% from the prior-year quarter due to lower revenues and high operating costs. Net sales fell 7.5%, once again due to a decline in enrollment.

DeVry has been witnessing persistent enrollment declines as a result of overall economic downturn and lack of student confidence. In July, DeVry had pre-announced its guidance for the quarter, which was largely disappointing. The final reported results were almost in line with the pre-announced figures.  A difficult regulatory environment and intense competition also create significant overhangs. We thus believe that though management is trying to boost its business and control costs, it might take time for these initiatives to deliver the desired results.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDS ENLC 36.29 +1.60%