JGP Global Gestao de Recursos Ltda. Takes Position in Scholastic Corporation $SCHL

Key Points

• JGP Global Gestao de Recursos Ltda. bought a new position of 35,245 shares of Scholastic, worth approximately $1.044 million, representing about 0.14% of the company and roughly 0.6% of the fund's portfolio (its 11th-largest holding).
• Scholastic declared a quarterly dividend of $0.20 (annualized $0.80, a 2.0% yield) and the board authorized a $200 million share buyback plan that could repurchase up to 23% of outstanding stock.
• Analyst sentiment has turned more positive with a consensus "Moderate Buy" and $40 target; the company recently beat quarterly EPS estimates (‑$0.15 vs. ‑$0.37) and the stock trades near its one-year high (~$39.76).

JGP Global Gestao de Recursos Ltda. purchased a new position in shares of Scholastic Corporation (NASDAQ:SCHL - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 35,245 shares of the company's stock, valued at approximately $1,044,000. Scholastic accounts for approximately 0.6% of JGP Global Gestao de Recursos Ltda.'s portfolio, making the stock its 11th biggest holding. JGP Global Gestao de Recursos Ltda. owned approximately 0.14% of Scholastic as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. GAMMA Investing LLC lifted its holdings in Scholastic by 63.1% during the third quarter. GAMMA Investing LLC now owns 2,540 shares of the company's stock worth $70,000 after acquiring an additional 983 shares during the period. Tower Research Capital LLC TRC lifted its holdings in Scholastic by 458.1% during the second quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company's stock worth $66,000 after acquiring an additional 2,593 shares during the period. Marquette Asset Management LLC bought a new stake in Scholastic during the fourth quarter worth $116,000. State of Wyoming bought a new stake in Scholastic during the third quarter worth $137,000. Finally, BNP Paribas Financial Markets lifted its holdings in Scholastic by 127.4% during the third quarter. BNP Paribas Financial Markets now owns 5,197 shares of the company's stock worth $142,000 after acquiring an additional 2,912 shares during the period. 82.57% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of analysts recently commented on the company. Zacks Research upgraded Scholastic from a "hold" rating to a "strong-buy" rating in a report on Friday, April 3rd. B. Riley Financial lifted their price target on Scholastic from $37.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, March 20th. Weiss Ratings upgraded Scholastic from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, January 30th. Finally, Wall Street Zen raised Scholastic from a "hold" rating to a "buy" rating in a research report on Saturday, March 21st. One analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Scholastic presently has a consensus rating of "Moderate Buy" and a consensus target price of $40.00.

Scholastic Price Performance

NASDAQ:SCHL opened at $39.76 on Friday. The business has a fifty day simple moving average of $36.03 and a two-hundred day simple moving average of $32.12. Scholastic Corporation has a 1 year low of $15.82 and a 1 year high of $40.15. The company has a market capitalization of $864.46 million, a P/E ratio of 16.03 and a beta of 1.08.

Scholastic (NASDAQ:SCHL - Get Free Report) last released its earnings results on Thursday, March 19th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.37) by $0.22. Scholastic had a return on equity of 2.47% and a net margin of 3.88%.The business had revenue of $329.10 million during the quarter, compared to the consensus estimate of $331.53 million. As a group, analysts anticipate that Scholastic Corporation will post 0.84 earnings per share for the current year.

Scholastic Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Thursday, April 30th will be given a $0.20 dividend. The ex-dividend date is Thursday, April 30th. This represents a $0.80 annualized dividend and a dividend yield of 2.0%. Scholastic's payout ratio is 32.26%.

Scholastic declared that its Board of Directors has authorized a stock buyback plan on Friday, March 20th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 23% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

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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