American Public Education, Inc.’s APEI Rasmussen University (RU) segment announced a grant program — Medical Assisting Wellness Grant — for medical students. This program will help medical assistant students across the United States save approximately 16% of their tuition costs (up to $2,250). The program is designed for the new students who will enroll in the RU's Medical Assisting Diploma program (12 months tenure) in April, May and July of 2023.
In this context, health sciences academic program director at RU, Dr. Andy Binanti, said, “We believe our Medical Assisting Wellness Grant will make it easier for students to get started on their career journey and meet the need for medical assistants in doctors' offices, hospitals and outpatient care centers across the country.”
Per the U.S. Bureau of Labor Statistics, employment for medical assistants is forecasted to grow 16% by 2031, with projected new job openings of approximately 123,000 annually. Considering this, RU’s new grant program will assist students pursuing medical assistant programs to achieve their goals and meet the expected employment needs in the country.
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Shares of APEI have declined 52.8% against the Zacks Schools industry’s growth of 18% in the past six months. Nonetheless, the stock gained 0.25% in the after-hour trading session on Mar 21, post the news release.
RU segment contributed 21.4% to American Public Education’s total revenues in 2022. After the RU acquisition on Sep 1, 2021 by APEI, the segment has added an attractive portfolio of programs to the company, which is adding to the growing trend.
However, the RU segment’s revenues declined to $60.7 million from $68.4 million reported a year ago. Total student enrollment also fell 9% due to a 23% collective decline in both nursing and non-nursing enrollment. This decline was due to caps on nursing student enrollment at certain campuses, reduced demand for nursing education due to record-low unemployment in some markets and fewer available nursing faculty to educate and oversee clinicals. It expects this trend to continue for 2023, particularly in this segment, owing to the impacts of inflation and higher labor costs.
Although, the contributions from the RU segment in 2022 were tepid, this new grant program is expected to help pull back the enrollment numbers, resulting in top-line growth. Medical assistants are considered highly valuable professionals whose demand is expected to increase in the near future due to the advancement in healthcare and the presence of an aging population.
Zacks Rank & Key Picks
APEI currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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