Scholastic (NASDAQ:SCHL) Shares Break Above Fifty Day Moving Average - What's Next?

Key Points

• Scholastic shares moved above their 50-day moving average, trading at $37.20 after reaching $37.49; the 50-day average is $37.11.
• Analyst sentiment remains cautious: the consensus rating is Hold with a $35 average price target. The company also missed quarterly earnings and revenue estimates.
• Scholastic announced a quarterly dividend of $0.25 per share, equivalent to $1.00 annually and a 2.7% yield.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report) shares crossed above its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $37.11 and traded as high as $37.49. Scholastic shares last traded at $37.20, with a volume of 188,701 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Weiss Ratings downgraded Scholastic from a "hold (c+)" rating to a "hold (c-)" rating in a research report on Monday, September 28th. Wall Street Zen upgraded Scholastic from a "sell" rating to a "hold" rating in a report on Sunday, October 18th. Zacks Research upgraded Scholastic from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 22nd. Finally, B. Riley Financial dropped their price target on Scholastic from $42.00 to $35.00 and set a "neutral" rating on the stock in a research report on Monday, September 28th. Three research analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, Scholastic has a consensus rating of "Hold" and an average price target of $35.00.

Scholastic Price Performance

The firm has a market capitalization of $701.59 million, a P/E ratio of 26.57, a price-to-earnings-growth ratio of 2.10 and a beta of 1.08. The business has a 50 day simple moving average of $37.11 and a two-hundred day simple moving average of $39.03. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.71 and a current ratio of 1.25.

Scholastic (NASDAQ:SCHL - Get Free Report) last posted its earnings results on Thursday, September 24th. The company reported ($3.63) earnings per share for the quarter, missing analysts' consensus estimates of ($3.42) by ($0.21). The business had revenue of $216.80 million during the quarter, compared to the consensus estimate of $224.69 million. Scholastic had a return on equity of 5.00% and a net margin of 3.60%. On average, sell-side analysts expect that Scholastic Corporation will post 1.41 EPS for the current fiscal year.

Scholastic Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, October 30th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, October 30th. Scholastic's dividend payout ratio is currently 71.43%.

Insider Activity at Scholastic

In related news, EVP Iole Lucchese sold 289,624 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $39.76, for a total value of $11,515,450.24. Following the completion of the sale, the executive vice president directly owned 289,623 shares in the company, valued at approximately $11,515,410.48. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Andres A. Alonso sold 2,112 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $40.28, for a total value of $85,071.36. Following the sale, the director owned 21,189 shares of the company's stock, valued at approximately $853,492.92. This represents a 9.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 12.77% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. lifted its position in Scholastic by 2.7% during the third quarter. Russell Investments Group Ltd. now owns 13,685 shares of the company's stock valued at $481,000 after purchasing an additional 362 shares during the period. Ritholtz Wealth Management acquired a new position in Scholastic during the third quarter worth $258,000. CenterBook Partners LP lifted its holdings in shares of Scholastic by 194.1% during the 3rd quarter. CenterBook Partners LP now owns 41,208 shares of the company's stock worth $1,449,000 after acquiring an additional 27,197 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al increased its position in shares of Scholastic by 3.7% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 30,947 shares of the company's stock worth $1,088,000 after acquiring an additional 1,100 shares during the last quarter. Finally, Signaturefd LLC raised its stake in Scholastic by 51.1% during the third quarter. Signaturefd LLC now owns 3,590 shares of the company's stock worth $126,000 after acquiring an additional 1,214 shares during the period. Hedge funds and other institutional investors own 82.57% of the company's stock.

About Scholastic

Scholastic Corporation NASDAQ: SCHL is a global children's publishing, education and media company. It develops and distributes books, digital content, classroom magazines, educational technology and other learning materials for children, educators and families.

The company publishes fiction and nonfiction for children and young adults through trade imprints and recognizable series and brands, including Harry Potter, Clifford the Big Red Dog, Goosebumps, Captain Underpants and The Hunger Games.

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