Pearson (NYSE:PSO) Reaches New 1-Year High - Should You Buy?

Pearson plc (NYSE:PSO - Get Free Report)'s stock price hit a new 52-week high on Friday . The stock traded as high as $17.25 and last traded at $17.24, with a volume of 254861 shares traded. The stock had previously closed at $16.86.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on PSO. National Bankshares set a $18.00 target price on shares of Pearson in a research report on Tuesday, February 18th. The Goldman Sachs Group raised shares of Pearson to a "strong-buy" rating in a research note on Thursday, January 30th. Finally, StockNews.com raised shares of Pearson from a "hold" rating to a "buy" rating in a research note on Monday.

Pearson Price Performance

The company has a 50 day moving average of $16.40 and a 200 day moving average of $15.13. The firm has a market cap of $11.89 billion, a price-to-earnings ratio of 18.97, a P/E/G ratio of 2.65 and a beta of 0.40. The company has a current ratio of 1.78, a quick ratio of 1.72 and a debt-to-equity ratio of 0.34.

Pearson Increases Dividend

The firm also recently announced a semi-annual dividend, which will be paid on Friday, May 16th. Investors of record on Friday, March 21st will be paid a dividend of $0.2092 per share. This represents a yield of 1.7%. This is a boost from Pearson's previous semi-annual dividend of $0.10. The ex-dividend date of this dividend is Friday, March 21st. Pearson's dividend payout ratio is presently 20.21%.

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Institutional Investors Weigh In On Pearson

Several institutional investors have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership increased its stake in Pearson by 49.5% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 844,228 shares of the company's stock valued at $13,609,000 after buying an additional 279,369 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of Pearson by 69.0% during the 4th quarter. Northern Trust Corp now owns 705,622 shares of the company's stock worth $11,375,000 after buying an additional 288,114 shares during the period. Optiver Holding B.V. grew its position in shares of Pearson by 135.5% in the fourth quarter. Optiver Holding B.V. now owns 495,797 shares of the company's stock valued at $7,992,000 after purchasing an additional 285,234 shares during the last quarter. Bank of Montreal Can increased its position in Pearson by 31.6% during the third quarter. Bank of Montreal Can now owns 405,852 shares of the company's stock worth $5,536,000 after acquiring an additional 97,443 shares during the period. Finally, ABC Arbitrage SA acquired a new stake in shares of Pearson in the fourth quarter valued at approximately $4,780,000. 2.14% of the stock is owned by institutional investors.

About Pearson

Pearson plc offers educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Workforce Skills, and Higher Education.