Grand Canyon Education (LOPE) has disclosed a new risk, in the Debt & Financing category.
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Grand Canyon Education’s concentration of 80% of its cash and cash equivalents in a single, large financial institution, while believed to be stable, poses a potential risk should the bank fail and exceed FDIC coverage. The dispersal of the remaining funds across two regional banks with robust balance sheets provides some mitigation, yet does not eliminate the exposure to losses beyond insured limits. The recent shift of operational banking services to one regional bank may further consolidate risk. Continuous monitoring of the financial health of these institutions is critical to safeguard the company’s assets.
Overall, Wall Street has a Moderate Buy consensus rating on LOPE stock based on 1 Buy.
To learn more about Grand Canyon Education’s risk factors, click here.
