McGraw Hill (NYSE:MH) Stock Breaks Below 200 Day Moving Average - Here's Why

Key Points

• McGraw Hill shares fell below their 200-day moving average, trading as low as $12.20 and last changing hands at $12.21, compared with the average of $12.64.
• Analyst sentiment remains positive overall: the stock has a “Moderate Buy” consensus rating and a $17.20 average price target.
• In its latest reported quarter, McGraw Hill earned $0.59 per share, beating the $0.48 consensus estimate; revenue rose 2.7% year over year to $549.9 million.

McGraw Hill, Inc. (NYSE:MH - Get Free Report)'s share price passed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $12.64 and traded as low as $12.20. McGraw Hill shares last traded at $12.2110, with a volume of 615,292 shares.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Wall Street Zen upgraded McGraw Hill from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 24th. Needham & Company LLC reiterated a "buy" rating and issued a $19.00 price target on shares of McGraw Hill in a research note on Thursday, August 13th. BMO Capital Markets increased their price target on McGraw Hill from $16.00 to $17.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Weiss Ratings upgraded McGraw Hill from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, October 23rd. Finally, BTIG Research restated a "buy" rating and set a $17.00 price objective on shares of McGraw Hill in a report on Tuesday, September 22nd. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $17.20.

McGraw Hill Price Performance

The company's 50-day moving average price is $13.29 and its two-hundred day moving average price is $12.64. The company has a market cap of $2.34 billion, a P/E ratio of 24.42 and a beta of -0.82. 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 issued its quarterly 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 business had revenue of $549.90 million for the quarter. McGraw Hill had a net margin of 4.38% and a return on equity of 62.57%. The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. As a group, sell-side analysts expect that McGraw Hill, Inc. will post 1.91 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of MH. Legal & General Group Plc bought a new stake in shares of McGraw Hill in the 2nd quarter valued at approximately $25,000. PNC Financial Services Group Inc. acquired a new stake in shares of McGraw Hill during the 1st quarter valued at approximately $68,000. NewEdge Advisors LLC bought a new position in McGraw Hill during the first quarter worth $84,000. Susquehanna International Group LLP bought a new position in McGraw Hill during the second quarter worth $147,000. Finally, State of Wyoming acquired a new position in McGraw Hill in the second quarter worth $154,000.

About McGraw Hill

McGraw Hill was a diversified information and publishing company that operated across education, financial information and media. Its education business published textbooks, digital learning programs, assessment products and instructional resources for schools, colleges, universities and professional learners.

The company also owned Standard & Poor's, which provided credit ratings, investment research, financial data and market indexes, including the S&P 500. Through these businesses, McGraw Hill served customers in the United States and international markets.

Founded in 1888 through the combination of publishing ventures established by James H.

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