Today’s Hot Stock under Review: Aspen Group, Inc. (NASDAQ:ASPU)

Shares of Aspen Group, Inc. (NASDAQ:ASPU) closed the trading at a price of $5.50 with the positive/negative change of +3.77%. In the past session approximately 103,715 shares were exchanged against the average daily trading volume of 57,403 shares. The stock touched to the maximum level of $5.51, and it reached the lower level of $5.25 in past session.

Aspen Group, Inc. (ASPU) recently reported financial results for its 2020 fiscal first quarter ended July 31, 2019.

First Quarter Performance Highlights

  • New student enrollments increased to 1,929 or 46% year-over-year
    º Aspen University (AU) new student enrollments increased to 1,415 or 29% year-over-year
    º United States University (USU) new student enrollments increased to 514 or 133% year-over-year
  • Weighted average cost of enrollment declined 18%
  • Bookings increased 83% to $26.9M
  • Average revenue per enrollment (ARPU) increased 24% to $13,919

Fiscal 2020 First Quarter Financial and Operational Results:

AGI delivered 1,929 new student enrollments for the fiscal quarter ended July 31, 2019, a 46% increase year-over-year. Aspen University accounted for 1,415 new student enrollments (including 198 Doctoral enrollments and 276 Pre-licensure Bachelor of Science in Nursing (“BSN”) Arizona campus enrollments). USU accounted for 514 new student enrollments (primarily Family Nurse Practitioner (“FNP”) enrollments), a 133% increase year-over-year. Enrollments for Aspen University’s Pre-Licensure BSN program increased 48% sequentially as the university began accepting enrollments for prerequisite students taking online courses in anticipation of entering the Honor Health final two-year core campus program that is predictable to launch on September 17, 2019.

Revenues increased to $10,357,982 for the fiscal quarter ended July 31, 2019, a raise of 43% as contrast to the previous fiscal year first quarter. USU accounted for about 26% and Aspen University’s Pre-Licensure BSN program accounted for about 8% of overall Company revenues.

Gross profit increased to $5,765,328 for the fiscal quarter ended July 31, 2019 or 56% gross margin. Aspen University gross profit represented 59% of Aspen University revenues for the fiscal quarter, while USU gross profit equaled 55% of USU revenues during the fiscal quarter. Aspen University instructional costs and services represented 18% of Aspen University revenues for the fiscal quarter, while USU instructional costs and services equaled 28% of USU revenues during the fiscal quarter. Aspen University marketing and promotional costs represented 20% of Aspen University revenues for the fiscal quarter, while USU marketing and promotional costs equaled 17% of USU revenues during the fiscal quarter.

Net loss applicable to shareholders was ($2,075,282) or diluted net loss per share of ($0.11). Aspen University generated $0.9M of net income for the fiscal quarter, while USU experienced a net loss of ($0.4M) in the fiscal quarter. AGI corporate incurred $2.6M of expenses for the first quarter.

EBITDA, a non-GAAP financial measure, was a loss of ($958,364) or (9%) as a percentage of revenue. Adjusted EBITDA, a non-GAAP financial measure, was a loss of ($86,099) or (1%) as a percentage of revenue. Aspen University generated $1.6M of Adjusted EBITDA for the fiscal quarter, while USU experienced an Adjusted EBITDA loss of ($10,006) in the fiscal quarter. AGI corporate contributed $1.6M of expenses toward the ($86,099) Adjusted EBITDA result for the fiscal quarter.

The volatility in the previous week has experienced by 7.58% and observed of 6.73% in the previous month.52.00% ownership is held by institutional investors while insiders hold ownership of 5.60%. In most recent quarter, LT Debt/Equity ratio was listed at 0.39 and Total Debt/Equity ratio was noted at 0.40.

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