McGraw Hill (NYSE:MH) Stock Price Down 5.5% - Here's What Happened

Key Points

• McGraw Hill shares fell 5.5% to about $12.94, with trading volume down 81% from the average session.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $17.20, despite several target-price cuts.
• The company exceeded quarterly earnings expectations, reporting $0.59 EPS versus $0.48 expected, while revenue rose 2.7% year over year to $549.9 million.

Shares of McGraw Hill, Inc. (NYSE:MH - Get Free Report) were down 5.5% during trading on Friday. The company traded as low as $12.92 and last traded at $12.9350. 114,729 shares changed hands during trading, a decline of 81% from the average session volume of 616,973 shares. The stock had previously closed at $13.69.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MH. Deutsche Bank Aktiengesellschaft set a $16.00 target price on McGraw Hill in a report on Friday, June 12th. Weiss Ratings raised shares of McGraw Hill from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, August 14th. Robert W. Baird decreased their price objective on shares of McGraw Hill from $19.00 to $16.00 and set an "outperform" rating for the company in a research note on Friday, June 12th. JPMorgan Chase & Co. cut their target price on shares of McGraw Hill from $21.00 to $20.00 and set an "overweight" rating on the stock in a research note on Friday, June 12th. Finally, BMO Capital Markets lifted their target price on shares of McGraw Hill from $16.00 to $17.00 and gave the company an "outperform" rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $17.20.

McGraw Hill Stock Performance

The company's fifty day simple moving average is $12.21 and its two-hundred day simple moving average is $12.15. The company has a market capitalization of $2.43 billion, a price-to-earnings ratio of 25.49 and a beta of -0.85. The company has a debt-to-equity ratio of 3.25, a quick ratio of 0.62 and a current ratio of 0.78.

McGraw Hill (NYSE:MH - Get Free Report) last issued 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. McGraw Hill had a return on equity of 62.57% and a net margin of 4.38%.The company had revenue of $549.90 million during the quarter. The company's revenue for the quarter was up 2.7% on a year-over-year basis. Equities research analysts predict that McGraw Hill, Inc. will post 1.91 earnings per share for the current fiscal year.

Hedge Funds Weigh In On McGraw Hill

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Platinum Equity Advisors LLC DE acquired a new position in shares of McGraw Hill during the 2nd quarter valued at $1,304,765,706,000. BlackRock Inc. bought a new position in McGraw Hill during the second quarter valued at about $16,488,000. Norges Bank acquired a new position in McGraw Hill during the fourth quarter worth about $18,485,000. Arrowstreet Capital Limited Partnership grew its holdings in McGraw Hill by 110.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 469,499 shares of the company's stock worth $6,432,000 after acquiring an additional 246,233 shares during the period. Finally, Bank of America Corp DE raised its position in McGraw Hill by 178.4% in the first quarter. Bank of America Corp DE now owns 388,255 shares of the company's stock worth $5,319,000 after acquiring an additional 248,773 shares in the last quarter.

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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