Scholastic (NASDAQ:SCHL) Share Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Scholastic shares rose above their 200-day moving average, trading as high as $40.54 and last changing hands at $40.10, signaling improved recent price momentum.
• Analyst views are mixed but lean cautiously positive, with a consensus rating of Moderate Buy and an average price target of $40.00; recent actions included upgrades and downgrades from several firms.
• The company reported a smaller-than-expected quarterly loss and also announced a quarterly dividend of $0.20 per share plus a $200 million share buyback program, both supportive of shareholder returns.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $33.24 and traded as high as $40.54. Scholastic shares last traded at $40.10, with a volume of 222,928 shares traded.

Wall Street Analyst Weigh In

A number of brokerages recently commented on SCHL. Wall Street Zen lowered shares of Scholastic from a "buy" rating to a "hold" rating in a report on Saturday, April 25th. B. Riley Financial raised their price objective on shares of Scholastic from $37.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, March 20th. Zacks Research upgraded shares of Scholastic from a "hold" rating to a "strong-buy" rating in a report on Friday, April 3rd. Finally, Weiss Ratings upgraded shares of Scholastic from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Scholastic presently has an average rating of "Moderate Buy" and a consensus price target of $40.00.

Scholastic Price Performance

The firm's 50 day moving average is $37.72 and its two-hundred day moving average is $33.24. The firm has a market capitalization of $871.77 million, a P/E ratio of 16.17 and a beta of 1.04.

Scholastic (NASDAQ:SCHL - Get Free Report) last released its quarterly earnings data on Thursday, March 19th. The company reported ($0.15) EPS for the quarter, topping analysts' consensus estimates of ($0.37) by $0.22. Scholastic had a net margin of 3.88% and a return on equity of 2.47%. The firm had revenue of $329.10 million during the quarter, compared to analysts' expectations of $331.53 million. Analysts anticipate that Scholastic Corporation will post 1.82 EPS for the current fiscal year.

Scholastic Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Thursday, April 30th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Thursday, April 30th. Scholastic's payout ratio is 32.26%.

Scholastic declared that its board has approved a share buyback program on Friday, March 20th that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the company to purchase up to 23% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Scholastic

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp boosted its position in Scholastic by 4.2% during the first quarter. Bank of New York Mellon Corp now owns 266,082 shares of the company's stock worth $10,393,000 after purchasing an additional 10,636 shares during the period. Sanctuary Advisors LLC lifted its holdings in shares of Scholastic by 21.8% during the first quarter. Sanctuary Advisors LLC now owns 12,170 shares of the company's stock worth $475,000 after buying an additional 2,182 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Scholastic by 62.1% during the first quarter. Principal Financial Group Inc. now owns 174,539 shares of the company's stock worth $6,817,000 after buying an additional 66,890 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new stake in shares of Scholastic during the first quarter worth $221,000. Finally, Fifth Third Bancorp lifted its holdings in shares of Scholastic by 5,351.0% during the first quarter. Fifth Third Bancorp now owns 5,451 shares of the company's stock worth $213,000 after buying an additional 5,351 shares in the last quarter. 82.57% of the stock is owned by institutional investors.

Scholastic Company Profile

Scholastic Corporation NASDAQ: SCHL is a global company dedicated to children's publishing, education technology and distribution services. The company's core business encompasses three primary segments: Children's Book Publishing and Distribution, Education Technology, and International operations. Through its publishing arm, Scholastic produces and distributes a wide range of children's books, novels, nonfiction titles and classroom magazines under well-known imprints such as Scholastic Press, Graphix and Chicken House.

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