McGraw Hill (NYSE:MH) Given Buy Rating at Needham & Company LLC

Key Points

• Needham reissued a Buy rating on McGraw Hill with a $19 price target, implying approximately 40.9% upside from the previous close. The stock has a consensus “Moderate Buy” rating and an average target of $18.30.
• McGraw Hill exceeded quarterly earnings expectations, reporting $0.59 EPS versus the $0.48 consensus and $549.9 million in revenue, up roughly 2.7% year over year. Management also highlighted recurring-revenue growth and AI initiatives as potential long-term drivers.
• Despite positive analyst sentiment and institutional buying, investors face risks from modest revenue growth, elevated leverage and weak liquidity; the shares also trade at a high price-to-earnings ratio of 67.41.

McGraw Hill (NYSE:MH - Get Free Report)'s stock had its "buy" rating reissued by Needham & Company LLC in a research report issued on Thursday,Benzinga reports. They currently have a $19.00 target price on the stock. Needham & Company LLC's price target indicates a potential upside of 40.94% from the company's previous close.

Several other research firms have also commented on MH. Deutsche Bank Aktiengesellschaft set a $16.00 target price on McGraw Hill in a research note on Friday, June 12th. JPMorgan Chase & Co. cut their price objective on shares of McGraw Hill from $21.00 to $20.00 and set an "overweight" rating on the stock in a report on Friday, June 12th. Morgan Stanley lowered their target price on shares of McGraw Hill from $21.00 to $18.00 and set an "overweight" rating for the company in a report on Thursday, June 11th. Wall Street Zen downgraded shares of McGraw Hill from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Robert W. Baird decreased their price target on shares of McGraw Hill from $19.00 to $16.00 and set an "outperform" rating on the stock in a report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, McGraw Hill has a consensus rating of "Moderate Buy" and a consensus target price of $18.30.

McGraw Hill Stock Performance

Shares of MH opened at $13.48 on Thursday. McGraw Hill has a 1 year low of $8.94 and a 1 year high of $18.00. The company's 50 day simple moving average is $10.60 and its 200 day simple moving average is $12.28. The company has a market capitalization of $2.58 billion and a price-to-earnings ratio of 67.41. The company has a debt-to-equity ratio of 3.53, a quick ratio of 0.61 and a current ratio of 0.77.

McGraw Hill (NYSE:MH - Get Free Report) last released 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 during the quarter. McGraw Hill had a net margin of 1.68% and a return on equity of 57.92%. The firm's quarterly revenue was up 2.7% on a year-over-year basis. On average, sell-side analysts predict that McGraw Hill will post 1.86 EPS for the current year.

Institutional Trading of McGraw Hill

A number of institutional investors and hedge funds have recently bought and sold shares of MH. Vanguard Group Inc. purchased a new position in McGraw Hill in the third quarter valued at approximately $32,923,000. Alyeska Investment Group L.P. purchased a new stake in McGraw Hill during the third quarter worth approximately $23,744,000. BlackRock Inc. acquired a new stake in shares of McGraw Hill in the second quarter worth $16,488,000. Norges Bank acquired a new stake in shares of McGraw Hill in the fourth quarter worth $18,485,000. Finally, Schroder Investment Management Group purchased a new position in shares of McGraw Hill in the 4th quarter valued at $14,856,000.

Key Stories Impacting McGraw Hill

Here are the key news stories impacting McGraw Hill this week:

• Positive Sentiment: Quarterly results exceeded expectations: McGraw Hill reported fiscal Q1 EPS of $0.59, well above the $0.48 consensus estimate and break-even earnings in the prior-year period. Revenue increased approximately 2.6% to 2.7% year over year to $549.9 million, supported by performance in its Higher Education and K-12 businesses. McGraw Hill shares rise nearly 4% after Q1 earnings and revenue beat forecasts
• Positive Sentiment: Recurring revenue and AI initiatives provided a growth signal: Management highlighted recurring revenue growth of about 10%, suggesting improved revenue visibility. Investors also focused on the company’s use of artificial intelligence as a potential long-term driver of product innovation and efficiency. McGraw Hill Q1 2027 earnings call highlights
• Positive Sentiment: Full-year revenue outlook was maintained or updated favorably: McGraw Hill guided to fiscal 2027 revenue of $2.1 billion to $2.2 billion, compared with consensus expectations near $2.1 billion. The range leaves room for upside if the company sustains its first-quarter momentum. McGraw Hill reports strong fiscal first-quarter 2027 results
• Neutral Sentiment: Shareholders elected the company’s proposed directors at the August 11 annual meeting, producing no major governance change or immediate financial impact. McGraw Hill reports strong fiscal Q1 2027 results
• Negative Sentiment: Despite the earnings beat, revenue growth remained modest, while McGraw Hill’s elevated leverage and weak liquidity metrics could limit flexibility. With a high valuation relative to earnings, the stock may require continued execution and stronger growth to sustain its gains.

About McGraw Hill

McGraw Hill NYSE: MH is a global learning science company specializing in educational content, digital learning platforms, and assessment solutions. The company offers textbooks and course materials for K-12 and higher education, along with professional development resources for corporate and workforce training. Its digital solutions—including adaptive learning platforms and analytics-driven tools—support personalized instruction, progress tracking, and interactive engagement in both classroom and remote environments.

Founded in 1888 in New York City, McGraw Hill has evolved from a technical periodical publisher into one of the world's leading providers of educational content and technology.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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