McGraw Hill (NYSE:MH) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded McGraw Hill from “hold” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $18.30.
• McGraw Hill exceeded quarterly expectations, reporting $0.59 in EPS versus the $0.48 consensus and $549.9 million in revenue, up about 2.7% year over year.
• Despite improving results and several target-price increases, the stock carries notable financial risks, including a high 26.23 P/E ratio, a 3.53 debt-to-equity ratio and current and quick ratios below 1.

McGraw Hill (NYSE:MH - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Several other equities analysts have also weighed in on MH. BMO Capital Markets upped their price objective on shares of McGraw Hill from $16.00 to $17.00 and gave the company an "outperform" rating in a report on Friday. Weiss Ratings upgraded McGraw Hill from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, June 12th. Deutsche Bank Aktiengesellschaft set a $16.00 target price on McGraw Hill in a research report on Friday, June 12th. Needham & Company LLC reiterated a "buy" rating and issued a $19.00 price target on shares of McGraw Hill in a report on Thursday. Finally, JPMorgan Chase & Co. reduced their price objective on McGraw Hill from $21.00 to $20.00 and set an "overweight" rating for the company in a research note on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.30.

McGraw Hill Stock Performance

Shares of MH stock opened at $13.12 on Friday. The firm has a 50 day moving average of $10.61 and a 200-day moving average of $12.28. The company has a market cap of $2.51 billion and a price-to-earnings ratio of 26.23. The company has a quick ratio of 0.61, a current ratio of 0.77 and a debt-to-equity ratio of 3.53. McGraw Hill has a 52 week low of $8.94 and a 52 week high of $18.00.

McGraw Hill (NYSE:MH - Get Free Report) last released its earnings results on Thursday, August 13th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.48 by $0.11. The company had revenue of $549.90 million for the quarter. McGraw Hill had a net margin of 4.38% and a return on equity of 63.04%. The company's revenue was up 2.7% on a year-over-year basis. On average, equities analysts forecast that McGraw Hill will post 1.86 earnings per share for the current year.

Hedge Funds Weigh In On McGraw Hill

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. purchased a new position in McGraw Hill in the third quarter valued at about $32,923,000. Alyeska Investment Group L.P. purchased a new position in McGraw Hill during the 3rd quarter valued at about $23,744,000. BlackRock Inc. purchased a new position in McGraw Hill during the second quarter valued at approximately $16,488,000. Norges Bank purchased a new position in shares of McGraw Hill during the 4th quarter valued at $18,485,000. Finally, Schroder Investment Management Group purchased a new position in McGraw Hill during the fourth quarter worth about $14,856,000.

Key Stories Impacting McGraw Hill

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

• Positive Sentiment: McGraw Hill reported fiscal Q1 2027 EPS of $0.59, exceeding the $0.48 consensus estimate and improving from break-even earnings a year earlier. Revenue rose approximately 2.6% to $549.9 million, driven by strength in its Higher Education and K-12 businesses. McGraw Hill fiscal first-quarter results
• Positive Sentiment: Management maintained a constructive outlook, issuing fiscal 2027 revenue guidance of approximately $2.1 billion to $2.2 billion, broadly in line with Wall Street expectations. The earnings discussion also highlighted recurring-revenue growth and increased use of artificial intelligence in the company’s offerings. McGraw Hill Q1 earnings call highlights
• Positive Sentiment: Analysts raised their targets after the results: BMO Capital Markets lifted its target to $17 and assigned an “outperform” rating, while Needham reaffirmed its “buy” rating with a $19 target. UBS also raised its target to $15, though it retained a neutral rating. Analyst target changes
• Neutral Sentiment: The target increases imply meaningful potential upside from recent trading levels, but UBS’s neutral stance indicates that some analysts view the stronger results as already partly reflected in the stock’s valuation. McGraw Hill trades at a relatively high earnings multiple, with significant debt and below-one current and quick ratios, which may be contributing to the stock’s subsequent weakness.

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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