Why This $14 Million Bet on Adtalem Global Stock Could Signal a Healthcare Education Pivot
Key Points
First Sabrepoint Capital Management initiated a new 135,000-share stake in Adtalem Global Education during the fourth quarter.
The quarter-end position value increased by $13.97 million due to the initiation of the new position.
The new position in Adtalem accounts for 5.39% of 13F AUM.
On February 13, 2026, First Sabrepoint Capital Management LP disclosed a new position in Adtalem Global Education (NYSE:ATGE), acquiring 135,000 shares in an estimated $13.97 million trade.
What happened
According to a SEC filing dated February 13, 2026, First Sabrepoint Capital Management LP initiated a new position in Adtalem Global Education (NYSE:ATGE), acquiring 135,000 shares. The estimated transaction value was $13.97 million.
What else to know
- This is a new position, now representing 5.39% of FIRST Sabrepoint Capital Management LP’s 13F reportable AUM
- Top holdings after the filing:
- NYSE: TPB: $43.36 million (17.8% of AUM)
- NASDAQ: FCFS: $31.08 million (12.8% of AUM)
- NASDAQ: LAUR: $16.84 million (6.9% of AUM)
- NASDAQ: CVCO: $15.95 million (6.6% of AUM)
- NYSE: ATGE: $13.97 million (5.7% of AUM)
- As of February 12, 2026, shares of Adtalem Global Education were priced at $92.92, down 11.5% over the past year and underperforming the S&P 500 by 24.41 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.89 billion |
| Net income (TTM) | $253.25 million |
| Price (as of market close 2/12/26) | $92.92 |
| One-year price change | (11.50%) |
Company snapshot
- Adtalem Global Education offers degree and non-degree programs in nursing, health professions, medical, veterinary, and online education through Chamberlain University, Walden University, and several medical/veterinary schools.
- The company generates revenue primarily from tuition and related educational services, leveraging both campus-based and online delivery models.
- It serves students seeking professional and graduate education in healthcare, public service, and related fields, with a focus on workforce-aligned credentials.
Adtalem Global Education Inc. is a leading provider of workforce-oriented postsecondary education, operating across healthcare and professional training segments. The company combines in-person and online learning platforms to address the evolving needs of students and employers. Its diversified academic offerings and focus on high-demand fields position it as a key player in the education and training services industry.
What this transaction means for investors
Capital is shifting toward businesses with durable enrollment growth and expanding margins, and this move reflects that shift. Adtalem recently posted $503.4 million in quarterly revenue, up 12.4% year over year, alongside adjusted EPS of $2.43, up 34.3%. Meanwhile, enrollment climbed 6.3% to 97,010 students, marking a 10th consecutive quarter of growth.
The fund’s new $13.97 million stake now accounts for 5.39% of assets, placing it alongside concentrated positions in consumer and education names like TPB and LAUR. That concentration suggests conviction, not a flyer.
Adtalem also raised full-year adjusted EPS guidance to $7.80 to $8.00 and ended the quarter with net leverage at just 0.9x. Free cash flow over the trailing twelve months reached $368.0 million, reinforcing the balance sheet flexibility behind its $750 million buyback authorization.
Long-term investors should focus on operating momentum. Walden revenue surged 27.0% year over year, and adjusted EBITDA margins expanded to 30.8% companywide. If healthcare workforce shortages persist, scale and profitability could prove far more valuable than recent share price underperformance suggests.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adtalem Global Education and Microsoft. The Motley Fool recommends Turning Point Brands. The Motley Fool has a disclosure policy.