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Downgrade Alert for Pearson (PSO)

By James Quinn

Pearson (NYSE:PSO) was downgraded from Outperform to Neutral at Exane BNP Paribas today. The stock closed yesterday at $10.20 on volume of 923,000 shares, above average daily volume of 310,000.

In the past 52 weeks, Pearson share prices have been bracketed by a low of $9.18 and a high of $21.15 and closed yesterday at $10.20, 11% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 1.2% while the 50-day MA has advanced 0.2%.

Pearson plc is a holding company, whose international subsidiaries operate in the education and media sectors. The Company publishes various financial papers, trade books, textbooks and electronic education programs, via their businesses which include the Financial Times, Penguin, The Economist and Recoletos.

There is potential upside of 59.1% for shares of Pearson based on a current price of $10.20 and an average consensus analyst price target of $16.23. The stock should run into initial resistance at its 50-day moving average (MA) of $12.13 and subsequent resistance at its 200-day MA of $13.72.

SmarTrend recommended that its subscribers protect gains by selling shares of Pearson on August 29th, 2016 by issuing a Downtrend alert when the shares were trading at $11.25. Since that call, shares of Pearson have fallen 8.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: analyst upgrades/downgrades pearson

Ticker(s): PSO