Adtalem Global Education tumbles following Safkhet Capital short report

Adtalem Global Education (NYSE:) shares tumbled Tuesday, falling as low as $43.78 per share after the company was the target of a short report by Safkhet Capital.

The short report labels Adtalem Global Education, a publicly traded, for-profit education company, as a “toxic byproduct of an imperfect higher education system.”

Safkhet Capital holds a short position in ATGE, which is currently down more than 17% at $48.40 after closing Monday at over $58 per share.

“We believe ATGE is teetering towards a reckoning as its nearsighted business decisions clash with historically high interest rates, looming regulations, and a generation of students now empowered to fight back.,” said Safkhet Capita.

In addition, the firm claims enrollment trends show stagnation with multi-year declines, while graduation rates and attrition across all ATGE schools are trailing far behind national averages.

Furthermore, Safkhet Capital said, “The gainful employment rule will likely result in the closure of numerous ATGE degree programs.”

“We find ATGE’s future contains far too many potentially great and existential risks which are not adequately reflected in its current value,” the firm added.