Business

DeVry declines amid 'diversification' concern

Posted April 22, 2010 11:00 pm

DeVry Inc., the owner of for-profit technical schools and colleges, had the biggest drop in the Standard & Poor's 500 Index on concern the company faces enrollment declines in its push to expand its business.

DeVry is based in Oakbrook Terrace.

The stock fell 4.7 percent to $70.74 as of 10:20 a.m. in New York. "A delay in California licensing will pressure" the new Bahamas campus of DeVry's Ross University, "with management projecting sharp declines in new enrollment in the near term," BMO Capital Markets wrote in a note to clients today. "New students also declined in Brazil blamed on volatility in graduate programs and delays in new program rollouts."

"This 'noise' highlights some of the potential negatives of the company's diversification strategy" and "could pressure" the stock, analyst Jeffrey M. Silber wrote in the note.

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