Scholastic (NASDAQ:SCHL) Stock Price Up 4.5% - Here's What Happened

Key Points

• Scholastic shares rose 4.5% to about $35.10 after the company announced a roughly $71 million acquisition of Cottage Door Press, expanding its early-childhood publishing business and distribution channels.
• Analyst sentiment remains cautious: B. Riley cut its price target to $35 and maintained a neutral rating, while Sidoti lowered its FY2027 EPS forecast amid expectations of continued earnings pressure.
• Scholastic recently missed quarterly estimates, reporting a loss of $3.63 per share and revenue of $216.8 million, but maintained a quarterly dividend of $0.25 per share, representing an annualized yield of about 2.9%.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report)'s share price rose 4.5% during trading on Tuesday. The stock traded as high as $35.21 and last traded at $35.0950. Approximately 307,970 shares were traded during mid-day trading, a decline of 31% from the average session volume of 447,274 shares. The stock had previously closed at $33.58.

Key Stories Impacting Scholastic

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic will acquire Cottage Door Press for approximately $71 million. The deal expands Scholastic’s presence in early-childhood publishing and adds Cottage Door’s books, formats and distribution channels to its portfolio. The announcement prompted shares to climb in premarket trading. Scholastic to Acquire Cottage Door Press
• Positive Sentiment: The acquisition could provide new growth opportunities in early-childhood education and publishing, helping Scholastic diversify beyond its existing book-fair and education businesses. At roughly $71 million, the transaction is meaningful relative to Scholastic’s approximately $662 million market capitalization. Scholastic to Acquire Cottage Door Press for $71 Million
• Neutral Sentiment: Recent coverage highlights mixed operating conditions: book fairs and franchise activity remain important contributors, while education-sector headwinds are weighing on results. Investors are likely to focus on management’s outlook and integration plans for Cottage Door. SCHL Q3 Deep Dive
• Negative Sentiment: Sidoti reduced its FY2027 EPS forecast to $1.29 from $1.46 and lowered several future quarterly estimates, including Q3 2027 to a loss of $0.88 per share from $0.84. The revisions suggest analysts see continued earnings pressure despite the current-year consensus estimate of $1.50. Equities Analysts Issue Forecasts for Scholastic Q3 Earnings
• Negative Sentiment: B. Riley lowered Scholastic’s price target to $35 from $42 and maintained a neutral rating, reflecting reduced confidence in near-term upside. Scholastic Stock Gains After a Difficult First Quarter

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. B. Riley Financial cut their price target on shares of Scholastic from $42.00 to $35.00 and set a "neutral" rating on the stock in a research note on Monday. Zacks Research upgraded shares of Scholastic from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 22nd. Finally, Weiss Ratings raised shares of Scholastic from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, September 11th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $35.00.

Scholastic Trading Up 4.3%

The stock has a 50-day moving average of $39.16 and a 200 day moving average of $40.42. The company has a quick ratio of 0.78, a current ratio of 1.23 and a debt-to-equity ratio of 0.10. The stock has a market cap of $660.48 million, a PE ratio of 25.02, a price-to-earnings-growth ratio of 1.66 and a beta of 1.01.

Scholastic (NASDAQ:SCHL - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The company reported ($3.63) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($3.42) by ($0.21). Scholastic had a return on equity of 4.71% and a net margin of 3.60%.The business had revenue of $216.80 million for the quarter, compared to analysts' expectations of $224.69 million. As a group, sell-side analysts anticipate that Scholastic Corporation will post 1.5 earnings per share for the current year.

Scholastic Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Friday, October 30th will be given a dividend of $0.25 per share. The ex-dividend date is Friday, October 30th. This represents a $1.00 dividend on an annualized basis and a yield of 2.9%. Scholastic's payout ratio is currently 71.43%.

Insider Buying and Selling at Scholastic

In other Scholastic news, EVP Iole Lucchese sold 289,624 shares of the stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $39.76, for a total transaction of $11,515,450.24. Following the sale, the executive vice president directly owned 289,623 shares of the company's stock, valued at approximately $11,515,410.48. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Andres A. Alonso sold 2,112 shares of Scholastic stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $40.28, for a total value of $85,071.36. Following the transaction, the director owned 21,189 shares of the company's stock, valued at $853,492.92. The trade was a 9.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 294,986 shares of company stock valued at $11,731,334. 12.77% of the stock is owned by insiders.

Institutional Investors Weigh In On Scholastic

Several hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Scholastic in the 2nd quarter valued at $120,724,000. Brandes Investment Partners LP grew its position in Scholastic by 6.6% during the fourth quarter. Brandes Investment Partners LP now owns 279,686 shares of the company's stock valued at $8,287,000 after buying an additional 17,407 shares during the period. Bank of New York Mellon Corp increased its holdings in Scholastic by 4.2% in the first quarter. Bank of New York Mellon Corp now owns 266,082 shares of the company's stock valued at $10,393,000 after buying an additional 10,636 shares in the last quarter. Empowered Funds LLC purchased a new position in Scholastic in the second quarter valued at $11,662,000. Finally, Thompson Siegel & Walmsley LLC acquired a new position in shares of Scholastic in the fourth quarter worth about $7,070,000. Hedge funds and other institutional investors own 82.57% of the company's stock.

About Scholastic

Scholastic Corporation is a global children's publishing, education and media company. Founded in 1920 by M. R. Robinson, the company develops and distributes books, classroom materials, digital learning resources and educational media for children, families, teachers and schools.

Its publishing portfolio includes original and licensed children's books, series and educational titles, while its education business provides classroom magazines, supplemental curriculum materials, professional learning resources and digital platforms.

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