Why Grand Canyon Education Stock Is Down More Than 15% Today
Shares of Grand Canyon Education (NASDAQ: LOPE) fell more than 15% on Wednesday, on concerns that new rules from the Department of Education will hurt its customers' ability to receive financial aid.
A recent announcement by the Department of Education made students living in California who are enrolled in online programs at nonprofit colleges and universities located in other states ineligible for federal financial aid. The move could affect thousands of California students.
Analysts at Baird expect the Department of Education's decision to hurt Grand Canyon Education's revenue in 2019. However, Baird maintained its outperform rating on the stock despite the potential revenue shortfall.
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