Stock Alert: K12 Shares Touch New Low After Lowering Guidance

(RTTNews) - Shares of online education provider K12 Inc. (LRN) touched a new low of $16.04 today. Two days back, the company sliced its fiscal 2020 adjusted operating income expectations to $48 million to $52 million, from prior projections of $68 million to $72 million. K12 attributed the guidance reduction primarily to purchase price accounting adjustments relating to its $165 million acquisition of Galvanize Inc., which offers coding boot camp programs.

From a high of $37.4 reached in mid-April last year, the stock has erased more than 50% of its value to touch a new low today. Yesterday, the stock lost 15% to close at 16.62, on a trading volume of 1.26 million shares, nearly 4 times the average trading volume of 316k.