Should Perdoceo Education’s US$100 Million Buyback Plan Shape PRDO Investors’ Capital Allocation View?

Perdoceo Education Corporation +4.15%

Perdoceo Education Corporation

PRDO

32.84

+4.15%

  • In January 2026, Perdoceo Education Corporation announced a new share repurchase program authorizing up to US$100,000,000 of common stock buybacks through June 30, 2027.
  • The company also reported having already retired 2,500,000 shares for US$74,800,000 under its July 2025 authorization, highlighting an active capital return approach.
  • Next, we will examine how this expanded buyback authorization and recent repurchase activity influence Perdoceo Education’s broader investment narrative.

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Perdoceo Education Investment Narrative Recap

To own Perdoceo Education, you need to believe in its ability to convert strong enrollment and high-demand programs into durable cash generation while managing regulatory and competitive pressures. The new US$100,000,000 buyback authorization supports the near term equity story around shareholder returns, but does not materially change the key catalyst of sustaining enrollment growth or the central risks tied to regulation and student acquisition costs.

The latest authorization follows completion of the July 2025 program, under which Perdoceo repurchased 2,500,000 shares for US$74,800,000. Taken together with regular dividends, this pattern of capital returns sits alongside the core catalyst of technology enabled student support, which is intended to support retention and, ultimately, the company’s ability to keep funding such programs.

But while buybacks and dividends may appeal, investors should also be aware of potential regulatory shifts that could...

Perdoceo Education's narrative projects $987.8 million revenue and $179.9 million earnings by 2028. This requires 8.7% yearly revenue growth and a $25.5 million earnings increase from $154.4 million.

Uncover how Perdoceo Education's forecasts yield a $42.00 fair value, a 32% upside to its current price.

Exploring Other Perspectives

PRDO 1-Year Stock Price Chart
PRDO 1-Year Stock Price Chart

Four members of the Simply Wall St Community see fair value for Perdoceo between US$24 and about US$111, reflecting very different return expectations. Set those views alongside the central risk that any change in federal funding or regulation could pressure both enrollment and the company’s capacity to keep returning cash to shareholders, and you can see why it helps to compare several perspectives before forming your own view.

Explore 4 other fair value estimates on Perdoceo Education - why the stock might be worth 25% less than the current price!

Build Your Own Perdoceo Education Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Perdoceo Education research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free Perdoceo Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perdoceo Education's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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