Zovio Inc (NASDAQ: ZVO) was a major gainer in yesterday’s trading session. The stock rallied in the day to close with gains of 30.49%. This followed the company’s announcement that, Ashford University got approval from California for its agency for veteran education. The approved application had a retroactive start date of 1st July 2019.
Commenting on the approval of Ashford University, Zovio CEO Andrew Clark stated that, Ashford University is ideal for the needs of veterans and other members of the military. He added that, the university’s survey showed that, 95% of students in the military recommend the institution to those seeking to pursue a degree. Most of its students go there through word of mouth referrals.
Due to its growing popularity, the institution has seen the percentage of its revenues that come from federal funding drop below the 90/10 rate, which is a validation of the high quality of education it offers.
The approval includes the majority of Ashford’s programs, and also includes an additional 4 stem programs. However, 20 programs were not approved by the VA, and they do not represent a sizeable number of students. As such, it will not affect the enrollment numbers at Ashford.
He added that, the approval of Ashford helped them achieve their common goals of offering veteran students a good education, by using the benefits they receive while serving the country. He concluded by stating that, Ashford will continue working with the VA to finish the administrative issues involved in approving new programs for the new and continuing veteran students.
From its price action, ZVO opened the day at $1.65. It then traded between a low of $1.63 and a high of $2.20, before closing the day at $2.14. Volumes in the day stood at 498.66k.
About Zovio Inc
Zovio Inc is an educational technological services provider. It works with institutions of higher learning to offer innovative and personalized solutions for learners. It is based in Chandler, Arizona.