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How to buy Pearson stock | 8.12

Own Pearson stock in just a few minutes.

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Pearson plc is a publishing business based in the US. Pearson shares (PSO) are listed on the NYSE and all prices are listed in US Dollars. Pearson employs 22,500 staff and has a market cap (total outstanding shares value) of USD$6.3 billion.

How to buy shares in Pearson

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Pearson. Find the stock by name or ticker symbol: PSO. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Pearson reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$8.12, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Pearson, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Pearson. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Pearson share price

Use our graph to track the performance of PSO stocks over time.

Pearson shares at a glance

Information last updated 2020-11-26.
Latest market close USD$8.12
52-week range USD$5.007 - USD$8.78
50-day moving average USD$7.4339
200-day moving average USD$7.0633
Wall St. target price USD$5.7
PE ratio 18.5732
Dividend yield USD$0.24 (2.79%)
Earnings per share (TTM) USD$1.015

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Pearson stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Pearson price performance over time

Historical closes compared with the close of $8.12 from 2020-11-16

1 week (2020-11-17) -0.98%
1 month (2020-10-23) 19.94%
3 months (2020-08-24) 5.59%
6 months (2020-05-23) N/A
1 year (2019-11-23) N/A
2 years (2018-11-23) -32.95%
3 years (2017-11-24) -13.43%
5 years (2015-11-24) -33.28%

Is Pearson under- or over-valued?

Valuing Pearson stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Pearson's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Pearson's P/E ratio

Pearson's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 19x. In other words, Pearson shares trade at around 19x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Pearson financials

Gross profit TTM USD$2 billion
Return on assets TTM 2.28%
Return on equity TTM 6.27%
Profit margin 7.5%
Book value $6.937
Market capitalisation USD$6.3 billion

TTM: trailing 12 months

Shorting Pearson shares

There are currently 1.6 million Pearson shares held short by investors – that's known as Pearson's "short interest". This figure is 2.5% up from 1.5 million last month.

There are a few different ways that this level of interest in shorting Pearson shares can be evaluated.

Pearson's "short interest ratio" (SIR)

Pearson's "short interest ratio" (SIR) is the quantity of Pearson shares currently shorted divided by the average quantity of Pearson shares traded daily (recently around 242601.07033639). Pearson's SIR currently stands at 6.54. In other words for every 100,000 Pearson shares traded daily on the market, roughly 6540 shares are currently held short.

However Pearson's short interest can also be evaluated against the total number of Pearson shares, or, against the total number of tradable Pearson shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Pearson's short interest could be expressed as 0% of the outstanding shares (for every 100,000 Pearson shares in existence, roughly 0 shares are currently held short) or 0% of the tradable shares (for every 100,000 tradable Pearson shares, roughly 0 shares are currently held short).

A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Pearson.

Find out more about how you can short Pearson stock.

Pearson share dividends

57%

Dividend payout ratio: 56.86% of net profits

Recently Pearson has paid out, on average, around 56.86% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.79% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Pearson shareholders could enjoy a 2.79% return on their shares, in the form of dividend payments. In Pearson's case, that would currently equate to about $0.24 per share.

Pearson's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Pearson's most recent dividend payout was on 24 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 13 August 2020 (the "ex-dividend date").

Pearson share price volatility

Over the last 12 months, Pearson's shares have ranged in value from as little as $5.007 up to $8.78. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Pearson's is -0.2361. This would suggest that Pearson's shares have been inversely-correlated to the average (for this exchange) – so when the broader market trended up or down, Pearson has bucked the trend.

Pearson overview

Pearson plc provides educational products and services to governments, educational institutions, corporations, and professional bodies worldwide. The company operates through North America, Core, and Growth segments. It offers courseware services, including curriculum materials provided in book form and/or through access to digital content; and assessments, such as test development, processing, and scoring services. The company also operates schools, colleges, and universities; and provides online learning services in partnership with universities and other academic institutions. In addition, it delivers and installs off-the-shelf software; and offers services to academic institutions, such as program development, student acquisition, education technology, and student support services, as well as undertakes contracts to process qualifying tests for individual professions and government departments under multi-year contractual arrangements. The company was founded in 1844 and is headquartered in London, the United Kingdom.

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