Hsbc Holdings PLC Invests $1.24 Million in Scholastic Corporation $SCHL

Key Points

• HSBC Holdings bought 26,534 Scholastic shares worth approximately $1.24 million, while institutional investors collectively owned 82.57% of the company.
• Scholastic insiders sold nearly $11.7 million in stock over the past three months, including an executive vice president’s sale of 289,624 shares.
• Scholastic beat quarterly earnings expectations with $2.19 per share but missed revenue estimates; analysts maintain a consensus “Reduce” rating with a $42 price target.

Hsbc Holdings PLC bought a new position in shares of Scholastic Corporation (NASDAQ:SCHL - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 26,534 shares of the company's stock, valued at approximately $1,236,000. Hsbc Holdings PLC owned 0.14% of Scholastic at the end of the most recent reporting period.

Several other institutional investors have also bought and sold shares of the stock. AQR Capital Management LLC raised its stake in Scholastic by 160.5% during the first quarter. AQR Capital Management LLC now owns 157,436 shares of the company's stock worth $2,972,000 after acquiring an additional 96,998 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Scholastic by 4.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,851 shares of the company's stock valued at $262,000 after purchasing an additional 630 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of Scholastic by 4.2% in the 1st quarter. Empowered Funds LLC now owns 164,178 shares of the company's stock valued at $3,100,000 after purchasing an additional 6,628 shares in the last quarter. Jane Street Group LLC grew its holdings in shares of Scholastic by 457.8% in the 1st quarter. Jane Street Group LLC now owns 81,390 shares of the company's stock worth $1,537,000 after purchasing an additional 66,798 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its holdings in shares of Scholastic by 16.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 23,440 shares of the company's stock worth $492,000 after purchasing an additional 3,365 shares during the last quarter. Institutional investors and hedge funds own 82.57% of the company's stock.

Insiders Place Their Bets

In related news, EVP Iole Lucchese sold 289,624 shares of the business's stock in a transaction that occurred on 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 completion of the sale, the executive vice president directly owned 289,623 shares of the company's stock, valued at $11,515,410.48. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Andres A. Alonso sold 2,112 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $40.28, for a total value of $85,071.36. Following the completion of the transaction, the director directly owned 21,189 shares in the company, valued at approximately $853,492.92. This trade represents a 9.06% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 294,986 shares of company stock valued at $11,731,334. 12.77% of the stock is currently owned by insiders.

Scholastic Price Performance

Scholastic stock opened at $38.40 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 firm has a market cap of $724.22 million, a P/E ratio of 16.41, a P/E/G ratio of 1.87 and a beta of 1.01. The business's fifty day moving average is $43.26 and its two-hundred day moving average is $40.21. Scholastic Corporation has a 52 week low of $22.68 and a 52 week high of $48.07.

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, beating analysts' consensus estimates of $2.16 by $0.03. Scholastic had a return on equity of 5.29% and a net margin of 3.58%.The company had revenue of $476.10 million during the quarter, compared to analyst estimates of $517.06 million. During the same period last year, the company posted $0.59 earnings per share. Equities research analysts forecast that Scholastic Corporation will post 1.6 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

SCHL has been the subject of several analyst reports. B. Riley Financial lifted their price target on shares of Scholastic from $40.00 to $42.00 and gave the company a "neutral" rating in a report on Wednesday, July 8th. Zacks Research cut shares of Scholastic from a "hold" rating to a "strong sell" rating in a research note on Monday, July 27th. Finally, Weiss Ratings lowered shares of Scholastic from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $42.00.

Scholastic Profile

Scholastic Corporation NASDAQ: SCHL is a global company dedicated to children's publishing, education technology and distribution services. The company's core business encompasses three primary segments: Children's Book Publishing and Distribution, Education Technology, and International operations. Through its publishing arm, Scholastic produces and distributes a wide range of children's books, novels, nonfiction titles and classroom magazines under well-known imprints such as Scholastic Press, Graphix and Chicken House.

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