Capella Education Unit to Award Degrees - Analyst Blog

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A subsidiary of Capella Education Company ( CPLA ), Resource Development International (RDI), recently received taught degree-awarding powers (TDAP) from the Privy Council of the UK government.

RDI is a leading independent provider of undergraduate and postgraduate programs in U.K. The courses are offered through online distance learning programs and are currently accredited by UK universities. TDAP was awarded to RDI after a strict inspection by UK's Quality Assurance Agency (QAA) for Higher Education.

RDI can now design its own degree programs and offer them under the brand of the new online university. The educational institution intends to obtain a university title, following which it intends to launch a new online distance learning university in UK.

RDI's programs offer an affordable, flexible learning model and are witnessing increasing demand in the education market. The recent TDAP approval will further strengthen the institute's ability to design the programs to suit the demand of the students and industry. It will also help the institute to attract international students.

Capella Education has been witnessing declining enrollment levels for sometime. However, Capella Education witnessed an increase in new enrollments in Doctoral and Master's programs during fourth-quarter 2013. The company expects total enrollment growth to turn positive in the latter half of 2014. The recent regulatory approvals will help the company improve its new enrollments.

Another education company struggling with enrollment levels is American Public Education, Inc. ( APEI ). American Public witnessed a worse-than-expected decline in total and new student enrollment levels in fourth-quarter 2013. Enrollments in the fourth quarter were adversely impacted by a decline in enrollments of students using Department of Defense (DoD) Tuition Assistance or TA benefits.

Capella Education Company currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the education sector include Apollo Education Group, Inc. ( APOL ) and Strayer Education Inc. ( STRA ). Strayer sports a Zacks Rank #1 (Strong Buy), whereas Apollo Education carries a Zacks Rank #2 (Buy).

AMER PUB EDUCAT (APEI): Free Stock Analysis Report

APOLLO GROUP (APOL): Free Stock Analysis Report

CAPELLA EDUCATN (CPLA): Free Stock Analysis Report

STRAYER EDUC (STRA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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