Scholastic (NASDAQ:SCHL) Raised to Hold at Zacks Research

Key Points

• Zacks Research upgraded Scholastic to “Hold” from “Strong Sell,” while the broader analyst consensus remains “Hold” with an average price target of $42.
• Scholastic reported quarterly EPS of $2.19, slightly exceeding estimates of $2.16, but revenue of $476.1 million fell short of the $517.1 million consensus.
• Insiders sold nearly 295,000 shares worth approximately $11.7 million over the past 90 days, while institutional investors own 82.57% of the company.

Scholastic (NASDAQ:SCHL - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Tuesday, Zacks reports.

Several other research analysts have also recently weighed in on the company. Weiss Ratings raised Scholastic from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, September 11th. B. Riley Financial lifted their target price on Scholastic from $40.00 to $42.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 8th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $42.00.

Scholastic Trading Up 0.3%

Shares of SCHL stock opened at $35.36 on Tuesday. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.78 and a current ratio of 1.23. The company has a market capitalization of $666.89 million, a price-to-earnings ratio of 15.11, a PEG ratio of 1.68 and a beta of 1.01. Scholastic has a 52-week low of $25.60 and a 52-week high of $48.07. The company has a 50-day simple moving average of $39.94 and a two-hundred day simple moving average of $40.46.

Scholastic (NASDAQ:SCHL - Get Free Report) last announced its earnings results on Thursday, July 23rd. The company reported $2.19 earnings per share for the quarter, topping analysts' consensus estimates of $2.16 by $0.03. The firm had revenue of $476.10 million for the quarter, compared to the consensus estimate of $517.06 million. Scholastic had a return on equity of 5.29% and a net margin of 3.58%.During the same quarter in the previous year, the business earned $0.59 EPS. Research analysts anticipate that Scholastic will post 1.61 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Kaya Henderson sold 3,250 shares of the business's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $40.25, for a total value of $130,812.50. Following the sale, the director directly owned 7,113 shares in the company, valued at approximately $286,298.25. The trade was a 31.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Iole Lucchese sold 289,624 shares of the company's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $39.76, for a total transaction of $11,515,450.24. Following the sale, the executive vice president directly owned 289,623 shares in the company, valued at approximately $11,515,410.48. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 294,986 shares of company stock valued at $11,731,334. 12.77% of the stock is owned by insiders.

Institutional Trading of Scholastic

A number of institutional investors have recently modified their holdings of SCHL. Meeder Asset Management Inc. bought a new stake in Scholastic during the 2nd quarter valued at $43,000. Integrated Wealth Concepts LLC purchased a new stake in Scholastic during the 2nd quarter worth about $56,000. State of Wyoming bought a new position in Scholastic in the 2nd quarter worth about $115,000. iSAM Funds UK Ltd bought a new position in Scholastic in the 2nd quarter worth about $235,000. Finally, Pallas Capital Advisors LLC purchased a new position in Scholastic during the 2nd quarter valued at about $247,000. 82.57% of the stock is currently owned by hedge funds and other institutional investors.

Scholastic Company Profile

Scholastic Corporation is a global children's publishing, education and media company. Founded in 1920 by M. R. Robinson, the company develops and distributes books, classroom materials, digital learning resources and educational media for children, families, teachers and schools.

Its publishing portfolio includes original and licensed children's books, series and educational titles, while its education business provides classroom magazines, supplemental curriculum materials, professional learning resources and digital platforms.

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