Option Market: K12 Inc Risk Hits An Elevated Level

K12 Inc (NYSE:LRN) Risk

Date Published:

2016-07-18

PREFACE

This is a proprietary risk rating for the next 30-days built by Capital Market Laboratories (CMLviz) based on a large number of interactions of data points, many of which
come directly from the option market for K12 Inc (NYSE:LRN) .

Risk as reflected by the option market has hit
a slightly elevated level relative to the company’s past. The option market reflects a 95% confidence interval stock price range of
($11.90, $15.00) within the next 30 calendar days.

LRN OPTION MARKET RISK

The short-term risk for a stock is reflected in the option market by a measure called the 30-day implied volatility or IV30®.
The IV30 is the risk reflected by the option market in the stock price for the next 30 calendar days — it’s forward looking.
K12 Inc shows an IV30 of 50.1%, which is a slightly elevated level for the company relative to its past.

The option market for LRN has shown an IV30 annual low of
38.6% and an annual high of 72.8%, meaning that LRN is at the 34% percentile right now. Here’s a table of the data before we dig into the risk rating further.

LRN
Current IV30    
LRN
Low IV30    
LRN
High IV30   
50.1% 38.6% 72.8%

01020304050607080Current IV30Low IV30High IV30

The option market reflects less risk in the next 30 calendar days for K12 Inc (NYSE:LRN) than on average.

Further, if we look backwards, the stock has a realized 30-day historical volatility, called the HV30, of 39.03%.

We have an unusual situation now where the IV30 is depressed relative to the past, but even with that risk pricing, the option market reflects the likelihood of a greater stock movement in the next 30-days than the stock has realized in the last 30-days.

Let’s turn to a chart to see what’s going on.

 0510152025303540455055Next 30 DaysLast 30 Days

Note how much higher the future risk for K12 Inc is priced (50.1%) compared to what happened just in the last 30-days (39.0%).

K12 Inc Risk Rating

The LRN risk rating is at 3.5, where the rating goes from one (the lowest risk) to five (the highest risk). The driving factors for the 3.5 rating are:

↪ The IV30 is below the annual average.

↪ The IV30 is above 50%.

↪ The HV30 is below the 20th percentile.

↪ The IV30 is above the HV30.

↪ The stock has moved +33.0% over the last 3-months which does indicate some elevated risk.

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K12 Inc (NYSE:LRN) Reported Basic Consolidated EPS Of $0.2498

April 21, 2016 1:55 pm

The yearly basic consolidated EPS for K12 Inc (NYSE:LRN) for the period ended 2015-06-30 was $0.2498. For the quarter ended 2015-06-30, the basis consolidated EPS was $0.2498.

EPS from continuing operations

The basic EPS from continuing operations as reported by K12 Inc (NYSE:LRN) for the period ended 2015-06-30 was $0.2498. For the quarter ended 2015-06-30, the respective number stood at $0.2498.

For any stock there may be numerous brokerage analysts tracking the company and releasing EPS projections. For over 20 years, Zacks has been following individual sell-side analyst projections and setting consensus EPS targets. The consensus projection is the mean of all the current projections made available by brokerages. Consensus estimates are considerably advantageous because they mitigate the risk of any single market analyst making an inaccurate forecast.

EPS contribution from parent

For the annual period closed 2015-06-30, K12 Inc (NYSE:LRN) received basic EPS of $0.2943 from its parent firm. On quarterly basis, the contribution from the parent firm for the period ended 2015-06-30 was $0.2943.

Basic net EPS

For the annual period closed 2015-06-30, K12 Inc (NYSE:LRN) posted basic net EPS of $0.29. On quarterly basis, the firm’s basic net per-share earnings for the quarter closed 2015-06-30 stood at $0.29.

Consolidated diluted EPS

The annual consolidated diluted per-share earnings reading for the period closed 2015-06-30 stood at $0.2479. For the quarter ended 2015-06-30, consolidated diluted EPS was $0.2479.

Basic diluted EPS

For the period ended 2015-06-30, diluted EPS number from continuing operation was $0.2479. For the quarter ended 2015-06-30, the respective number stood at $0.2479.

Net diluted EPS

Net diluted EPS number for the annual period closed 2015-06-30 was $0.29. For the quarter ended 2015-06-30, net diluted EPS was $0.29.

Diluted EPS from parent

From the parent company, K12 Inc (NYSE:LRN) obtained diluted EPS of $0.292 for the period ended 2015-06-30. On quarterly basis, the diluted EPS payment from the parent firm for the quarter ended 2015-06-30 was $0.292.

K12 Inc (NYSE:LRN) posted net basic EPS of $0.29 for the annual period closed 2015-06-30. For the quarter, this basic net EPS came at $0.29 for the quarter closed 2015-06-30.

The average basic shares outstanding for the fiscal ended 2015-06-30 is 37.331 while for the quarter closed 2015-06-30 is 37.331.

The diluted shares outstanding for the twelve-monthly period ended 2015-06-30 is 37.625 while for the quarter closed 2015-06-30 is 37.625.

Author: Enterprise Staff

K12 Inc (NYSE:LRN) $195.852 In Cash And Short-Term Investments As On 2015–0-6-30

By Stocks Daily StaffApril 14, 2016

K12 Inc (NYSE:LRN) reported accounts payable of $29.819 millions for the annual period ended 2015–0-6-30. The accounts payable for the quarter ended 2015–0-6-30 was $29.819 millions.

The change in accounts payable of K12 Inc (NYSE:LRN) at the end of the annual period ended 2015–0-6-30 was $-1.192 millions. For the quarter ended 2015–0-6-30 change in accounts payable stood at $-1.192 millions.

The current Deferred tax assets for the fiscal year 2015–0-6-30 stood at $8.989 millions. While for the quarter ended 2015–0-6-30 the current Deferred tax assets was $8.989 millions.

The change in assets and liabilities for the fiscal year ended 2015–0-6-30 stood at -5.909 millions. And the change during the quarter ended 2015–0-6-30 stood at $-5.909 millions.

Days sales in receivables ie., the average number of days it takes to collect outstanding receiveable amounts from customers for the fiscal year ended 2015–0-6-30 was 72.4562. While for the quarter ended 2015–0-6-30 it stood at 72.4562.

The change in the accounts receivables for the annual and quarter ended 2015–0-6-30 and 2015–0-6-30 was $-1.892 millions and $-1.892 millions respectively.

The change in inventory for the fiscal year ended 2015–0-6-30 was $2.853 millions, while for the quarter ended 2015–0-6-30 it stood at $2.853 millions.

The current portion of the outstanding debt for the fiscal year ended 2015–0-6-30 is 1.5 millions. And the outstanding debt for quarter ended 2015–0-6-30 is $1.5 millions.

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Director, SEC Reporting & Technical Accounting




Herndon, VA, USA | N/A


  • Industry:


    Education


  • Position Type:

    Full-Time



  • Functions:


    Accounting / Control
    General Management


  • Experience:

    5-7 years
    7-10 years

Job Description:

50 people have viewed this job

The Director of SEC Reporting & Technical Accounting manages all SEC Reporting and technical accounting including accounting policy, review of complex accounting transactions, writes position papers in support of accounting conclusions, and implements new standards. Reporting to the Corporate Controller, this position prepares financial reports for the U.S. Securities and Exchange Commission (SEC) including Forms 10-K, 10-Q, 8-K,and assist with Schedule 14 any other SEC reports that include financial information, and manage technical accounting matters. 

•    Preparation and management of the quarterly and annual SEC filings to include coordinating with internal Legal and Investor Relations and independent auditors;

•    Complies the Company’s consolidated quarterly and annual financial statements and the preparation and analysis of all financial information underlying the statements, footnotes and supporting schedules;

•    Performs U.S. Generally Accepted Accounting Principles (US GAAP) and SEC accounting research and provides technical guidance for new or unique business transactions to support the Company’s changing business and implementation of new accounting standards;

•    Coordinates with the Accounting Department to gather and support information necessary to address new accounting standards implementation;

•    Provides companywide expertise on accounting for revenue recognition;

•    Works closely across the Accounting Department on business issues impacting financial statements and footnote presentations and disclosures;

•    Manages equity based compensation accounting, including evaluation of proposed compensation programs and coordination with executives, legal, human resources and third party equity administrator. Establishes and maintains a close working relationship with the Company’s Financial Planning & Analysis (FP&A), Investor Relations and Legal;

•    Prepares collaborative responses to standard and ad-hoc inquiries and requests from FP&A; 

•    Participates in ad hoc projects, including assisting the corporate controllership team with technical accounting research, peer comparison disclosures, acquisitions/divestitures and due diligence activities;

•    Works with external and internal auditors to support quarter and year-end financial audits and internal control reviews; 

•    Establishes and monitors key internal controls over financial reporting to ensure compliance with Sarbanes-Oxley (SOX);

•    Assists Investor Relations with providing financial information and analysis for investor calls and presentations as well as individual queries that may arise.

Supervisory Responsibilities: This position has no supervisory responsibilities.

Requirements    Bachelor’s degree in Accounting, Finance or related field

· (6) years of public accounting, plus several years of industry financial reporting experience 

Certificates and Licenses: Certified Public Accountant (CPA) required

· Strong understanding of US GAAP and SEC accounting and disclosure standards and genuine interest and proven ability to research complex accounting and finance matters (Revenue recognition, Variable Interest Entity, purchase accounting, deconsolidation, noncontrolling interest, equity based compensation, International Accounting, etc)

· Experience in public accounting with a Big 4 firm for years minimum, attaining Manager or level or higher

· Excellent oral and written communication skills 

· Ability to work collaboratively across departmental functions

· Project management skills and an ability to perform thorough and complex financial statement analytics 

· Proficiency with Oracle (preferred) or another large ERP, Microsoft Excel, PowerPoint, Access, Outlook, Word

PREFERRED QUALIFICATIONS: 

· ’s degree in Accounting, Finance or related field

· (8) years plus relevant experience


Other companies hiring with Ivy Exec

Investors and Teachers Unions Upbraid Online Charter School Operator K12


Dec 17, 2015

THE WINTER OF OUR DISCONTENT: K12, an online charter school provider, held its annual investor meeting December 16 to disastrous results. Investors voted down the company’s plan for executive pay, and teachers unions and representatives from K12’s own schools protested outside the meeting. Advisory firm Glass Lewis & Co. advised shareholders to vote against the pay proposal because of a “substantial disconnect between compensation and performance results,” Buzzfeed News reports. K12’s stock is down 75 percent from a high in 2013.

K12 is faced with damning evidence. A 2015 report found that students enrolled in K12’s schools and other online charters did not measure up to their peers at offline schools. California’s attorney general Kamala Harris has also opened an investigation into K12’s practices. As for the executive pay, K12 paid CEO Nathaniel Davis $5.33 million and its chief financial officer $3.6 million in 2015.

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Why Investors Are Watching: The Chefs’ Warehouse (NASDAQ:CHEF), GrubHub Inc. (NYSE:GRUB), Solar Capital (NASDAQ:SLRC), K12 (NYSE:LRN), Callidus Software (NASDAQ:CALD) | Property Mentor Group

The annual meeting of the stockholders of K12 Inc. (NYSE:LRN) was held on December 17, 2014. The Company previously filed with the Securities and Exchange Commission a definitive proxy statement and related materials pertaining to this meeting, which describe in detail each of the three proposals submitted to stockholders at the meeting.K12, Inc. (NYSE:LRN) has 2.30% insider ownership while its institutional ownership stands at 96.20%. In last trading activity company’s stock closed at $12.99.

John Hechinger, one of the narion’s top investigative reporters, here presents a balanced but nonetheless devastating overview of K12 Inc., the for-profit virtual charter chain listed on the Néw York Stock Exchange.


K12 is the biggest purveyor of online homeschooling, paid for with public funds drawn away from traditional public schools.


This approach may be effective for some studentsstudents training to be athletes or performers, students with illnesses–but K12 reaches out to recruit as many as it can.


“Plagued by subpar test scores, the largest operator of online public schools in the U.S. has lost management contracts or been threatened with school shutdowns in five states this year. The National Collegiate Athletic Association ruled in April that students can no longer count credits from 24 K12 high schools toward athletic scholarships.

While the company says its investments in academic quality are starting to pay off, once-soaring enrollment at the more than 60 public schools it manages has dropped almost 5 percent. Targeted by short sellers, who benefit from a company’s decline, K12 shares have tumbled by two-thirds since reaching a near-record high in Septeber 2013…..”


“Of the full-time online schools assigned ratings by their states, only one-third were considered academically acceptable in 2012-2013, the National Education Policy Center at the University of Colorado reported this year. The percentage of K12 students achieving proficiency on state math and reading tests is generally below state averages, according to the company’s 2014 academic report.


“Ohio Virtual Academy, which accounts for 10 percent of K12’s annual revenue, received failing grades on a state report card last year for student test-score progress and graduation rates. Only 37 percent of its ninth graders receive diplomas within four years.”


Several online charters have cancelled their contracts with K12. Tennessee may soon cancel its Tennessee Virtual Academy.


“In Tennessee, education commissioner Kevin Huffman is moving to close a K12-managed school unless it can improve results by the end of this school year. Tennessee Virtual Academy has test results “in the bottom of the bottom tier” and is an “abject failure” in improving student outcomes, Huffman said in a telephone interview.”
















via Diane Ravitch’s blog » K12 Inc. http://ift.tt/1t39mGh

John Hechinger, one of the narion’s top investigative reporters, here presents a balanced but nonetheless devastating overview of K12 Inc., the for-profit virtual charter chain listed on the Néw York Stock Exchange.


K12 is the biggest purveyor of online homeschooling, paid for with public funds drawn away from traditional public schools.


This approach may be effective for some studentsstudents training to be athletes or performers, students with illnesses–but K12 reaches out to recruit as many as it can.


“Plagued by subpar test scores, the largest operator of online public schools in the U.S. has lost management contracts or been threatened with school shutdowns in five states this year. The National Collegiate Athletic Association ruled in April that students can no longer count credits from 24 K12 high schools toward athletic scholarships.

While the company says its investments in academic quality are starting to pay off, once-soaring enrollment at the more than 60 public schools it manages has dropped almost 5 percent. Targeted by short sellers, who benefit from a company’s decline, K12 shares have tumbled by two-thirds since reaching a near-record high in Septeber 2013…..”


“Of the full-time online schools assigned ratings by their states, only one-third were considered academically acceptable in 2012-2013, the National Education Policy Center at the University of Colorado reported this year. The percentage of K12 students achieving proficiency on state math and reading tests is generally below state averages, according to the company’s 2014 academic report.


“Ohio Virtual Academy, which accounts for 10 percent of K12’s annual revenue, received failing grades on a state report card last year for student test-score progress and graduation rates. Only 37 percent of its ninth graders receive diplomas within four years.”


Several online charters have cancelled their contracts with K12. Tennessee may soon cancel its Tennessee Virtual Academy.


“In Tennessee, education commissioner Kevin Huffman is moving to close a K12-managed school unless it can improve results by the end of this school year. Tennessee Virtual Academy has test results “in the bottom of the bottom tier” and is an “abject failure” in improving student outcomes, Huffman said in a telephone interview.”
















via Diane Ravitch’s blog http://ift.tt/1t39mGh

Well, of course, there re scores of education entrepreneurs, the men and women who dream up lever was to make profits from the field of public education. They have start-ups, they have real-estate investment trusts, they create companies to build data systems, they operate for-profit charter chains, on and on. Some get very rich. They certainly make more money than teachers, who spend their days with children.


Education Next, the journal of rightwing academics and journalists here profiles three entrepreneurs.


The three edu-entrepreneurs featured here are Larry Berger of Wireless Generation, whose company was purchased by Rupert Murdoch for $390 million;


Jonathan Harber, who created Schoolnet and sold it to Pearson for $230 million.


Ron Packard of K12, who founded the company with the Milken brothers, which went public in 2007, and now has revenues of $848 million.


It is astonishing when you think about it that non-educators profit so handsomely when teachers must work for years to reach an annual salary of $50,000.


Who adds social value?


It gives one pause, makes you think about our priorities. And think of who has the great fortunes: Murdoch, Pearson, the Milkens.


I withhold further comment.
















via Diane Ravitch’s blog http://ift.tt/1aYPKk3