Adtalem Global Education shares drop after cautious report by Safkhet Capital

Safkhet Capital, in a research note, says it is short Adtalem Global Education. The firm believes Adtalem’s model is dependent on billions in taxpayer dollars to schools where outcomes lag far behind national averages, with most students either not graduating on-time or not graduating at all. Investors must consider existential risks around funding restrictions, delays, and the potential for closures, Safkhet says. Shares of Adtalem are down nearly 17% in premarket trading.