DeVry Shares Fall as School Enrollment Slows

DeVry Inc. shares fell 22% after enrollment at the biggest U.S. chain of business and technical schools for adults increased less than expected this fall. In addition, the school was sued by three former students who said their education at DeVry left them ill-prepared. DeVry, based in Oakbrook Terrace, Ill., denied the lawsuit’s allegations in a news release. The company’s shares fell $8.38 to close at $30.31 on the NYSE. The stock, which reached a 52-week high of $41.50 on Monday, earlier touched $28. “These [education] stocks tend to trade in lock-step with enrollment,” said analyst Alexander Paris Jr. of Barrington Research Associates Inc. in Chicago, who downgraded the stock to “hold” from “long-term buy.” At least five other analysts have cut their ratings this month. Paris said DeVry’s enrollment growth slowed because it shut some sites at recently acquired subsidiaries in Canada.