McGraw Hill, Inc. (NYSE:MH) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• McGraw Hill has a “Moderate Buy” consensus rating from 12 analysts: eight buy ratings, one strong buy, two holds and one sell. The average 12-month price target is $17.20, above the stock’s reported $13.23 price.
• Recent analyst actions were mixed but generally constructive: Goldman Sachs and Robert W. Baird lowered their price targets while retaining positive ratings, whereas BMO Capital Markets and UBS raised theirs.
• McGraw Hill exceeded quarterly earnings expectations, reporting $0.59 in EPS versus a $0.48 consensus estimate and $549.9 million in revenue, up 2.7% year over year. Analysts expect full-year EPS of approximately $1.91.

McGraw Hill, Inc. (NYSE:MH - Get Free Report) has received a consensus rating of "Moderate Buy" from the twelve ratings firms that are covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $17.20.

Several brokerages have recently issued reports on MH. The Goldman Sachs Group lowered their price target on McGraw Hill from $19.00 to $17.00 and set a "buy" rating on the stock in a research report on Thursday, June 11th. Robert W. Baird decreased their target price on McGraw Hill from $19.00 to $16.00 and set an "outperform" rating for the company in a research note on Friday, June 12th. BMO Capital Markets raised their target price on McGraw Hill from $16.00 to $17.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Weiss Ratings raised McGraw Hill from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, August 14th. Finally, UBS Group upped their price target on McGraw Hill from $14.00 to $15.00 and gave the stock a "neutral" rating in a report on Friday, August 14th.

Hedge Funds Weigh In On McGraw Hill

Several large investors have recently bought and sold shares of the stock. Corient Private Wealth LP bought a new stake in McGraw Hill in the 2nd quarter valued at $336,000. HighTower Advisors LLC bought a new position in shares of McGraw Hill during the 2nd quarter worth about $212,000. AXQ Capital LP raised its position in shares of McGraw Hill by 193.2% during the second quarter. AXQ Capital LP now owns 42,737 shares of the company's stock valued at $405,000 after buying an additional 28,162 shares during the last quarter. Susquehanna International Group LLP bought a new stake in shares of McGraw Hill in the second quarter valued at about $147,000. Finally, Platinum Equity Advisors LLC DE bought a new stake in shares of McGraw Hill in the second quarter valued at about $1,304,765,706,000.

McGraw Hill Price Performance

NYSE MH opened at $13.23 on Tuesday. McGraw Hill has a 1 year low of $8.94 and a 1 year high of $18.00. The company has a fifty day simple moving average of $11.99 and a 200 day simple moving average of $12.16. The company has a current ratio of 0.78, a quick ratio of 0.62 and a debt-to-equity ratio of 3.25. The company has a market cap of $2.53 billion, a P/E ratio of 26.46 and a beta of -0.85.

McGraw Hill (NYSE:MH - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.48 by $0.11. The firm had revenue of $549.90 million for the quarter. McGraw Hill had a net margin of 4.38% and a return on equity of 62.57%. The company's revenue was up 2.7% on a year-over-year basis. On average, sell-side analysts predict that McGraw Hill will post 1.91 EPS for the current year.

McGraw Hill Company Profile

McGraw Hill is an education company that develops learning materials, digital courseware and assessment products for students, educators and institutions. Its offerings span higher education, K–12 schools, professional learning and international markets, with products designed to support instruction, curriculum planning, homework, testing and student progress tracking.

The company's portfolio includes digital learning platforms, college textbooks, adaptive learning tools, online assignments, teacher resources and educational assessments.

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