McGraw Hill (NYSE:MH) Shares Gap Up - Should You Buy?

Key Points

• McGraw Hill shares opened higher, rising from a previous close of $12.32 to $12.84 and last trading near $13.04.
• Analyst sentiment is broadly positive: the stock has a consensus “Moderate Buy” rating and a $17.20 average price target, implying potential upside.
• Recent quarterly results exceeded expectations, with EPS of $0.59 versus the $0.48 estimate and revenue of $549.9 million, up 2.7% year over year; several institutional investors also increased or initiated positions.

McGraw Hill, Inc. (NYSE:MH - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $12.32, but opened at $12.84. McGraw Hill shares last traded at $13.0350, with a volume of 50,259 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on MH shares. Wall Street Zen upgraded McGraw Hill from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. BMO Capital Markets lifted their price objective on McGraw Hill from $16.00 to $17.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Deutsche Bank Aktiengesellschaft set a $16.00 target price on McGraw Hill in a research report on Friday, June 12th. Morgan Stanley reduced their target price on McGraw Hill from $18.00 to $16.00 and set an "overweight" rating on the stock in a report on Friday, August 14th. Finally, Weiss Ratings upgraded McGraw Hill from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, McGraw Hill presently has a consensus rating of "Moderate Buy" and a consensus price target of $17.20.

McGraw Hill Price Performance

The company's 50-day moving average is $11.63 and its 200-day moving average is $12.19. The firm has a market cap of $2.47 billion, a price-to-earnings ratio of 25.80 and a beta of -0.85. The company has a current ratio of 0.78, a quick ratio of 0.62 and a debt-to-equity ratio of 3.25.

McGraw Hill (NYSE:MH - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.48 by $0.11. McGraw Hill had a net margin of 4.38% and a return on equity of 62.57%. The business had revenue of $549.90 million during the quarter. The business's quarterly revenue was up 2.7% compared to the same quarter last year. Equities research analysts predict that McGraw Hill, Inc. will post 1.91 earnings per share for the current year.

Hedge Funds Weigh In On McGraw Hill

A number of institutional investors have recently modified their holdings of the business. Corient Private Wealth LP bought a new stake in shares of McGraw Hill during the 2nd quarter worth $336,000. HighTower Advisors LLC bought a new position in McGraw Hill in the second quarter valued at about $212,000. California State Teachers Retirement System raised its stake in McGraw Hill by 103.8% during the second quarter. California State Teachers Retirement System now owns 3,248 shares of the company's stock worth $31,000 after acquiring an additional 1,654 shares in the last quarter. AXQ Capital LP raised its stake in McGraw Hill by 193.2% during the second quarter. AXQ Capital LP now owns 42,737 shares of the company's stock worth $405,000 after acquiring an additional 28,162 shares in the last quarter. Finally, Susquehanna International Group LLP bought a new position in shares of McGraw Hill in the second quarter worth about $147,000.

About McGraw Hill

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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