Scholastic (NASDAQ:SCHL) Shares Gap Up - Here's Why

Key Points

• Scholastic's stock price gapped up from $25.28 to $26.56 before trading at $25.81, reflecting positive market sentiment.
• B. Riley initiated coverage on Scholastic with a "buy" rating and a price target of $37.00, while the consensus rating remains a "buy."
• The company declared a quarterly dividend of $0.20 per share with an ex-dividend date of August 29th, representing a 3.2% dividend yield.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $25.28, but opened at $26.56. Scholastic shares last traded at $25.81, with a volume of 33,206 shares.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on SCHL shares. B. Riley started coverage on shares of Scholastic in a research report on Wednesday. They set a "buy" rating and a $37.00 price target on the stock. Wall Street Zen raised shares of Scholastic from a "hold" rating to a "buy" rating in a research report on Friday, August 22nd. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $37.00.

Scholastic Trading Down 0.1%

The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.76 and a current ratio of 1.16. The stock has a market capitalization of $632.89 million, a P/E ratio of -632.38 and a beta of 1.24. The firm's fifty day simple moving average is $23.71 and its 200 day simple moving average is $20.43.

Scholastic (NASDAQ:SCHL - Get Free Report) last released its earnings results on Thursday, July 24th. The company reported $0.87 EPS for the quarter, beating the consensus estimate of $0.85 by $0.02. Scholastic had a negative net margin of 0.12% and a positive return on equity of 1.39%. The firm had revenue of $508.30 million for the quarter, compared to analyst estimates of $494.59 million. Scholastic has set its FY 2026 guidance at EPS. As a group, equities research analysts forecast that Scholastic Corporation will post 0.84 EPS for the current fiscal year.

Scholastic Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 29th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.80 annualized dividend and a dividend yield of 3.2%. Scholastic's payout ratio is -2,000.00%.

Institutional Investors Weigh In On Scholastic

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Signaturefd LLC grew its holdings in shares of Scholastic by 819.5% during the 2nd quarter. Signaturefd LLC now owns 1,223 shares of the company's stock valued at $26,000 after purchasing an additional 1,090 shares during the last quarter. Lazard Asset Management LLC bought a new stake in shares of Scholastic during the 4th quarter valued at approximately $33,000. GAMMA Investing LLC grew its holdings in shares of Scholastic by 182.4% during the 1st quarter. GAMMA Investing LLC now owns 1,776 shares of the company's stock valued at $34,000 after purchasing an additional 1,147 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Scholastic by 458.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company's stock valued at $66,000 after purchasing an additional 2,593 shares during the last quarter. Finally, CWM LLC grew its holdings in shares of Scholastic by 508.7% during the 1st quarter. CWM LLC now owns 4,194 shares of the company's stock valued at $79,000 after purchasing an additional 3,505 shares during the last quarter. 82.57% of the stock is owned by institutional investors.

Scholastic Company Profile

Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education Solutions, and International. The Children's Book Publishing and Distribution segment engages in publication and distribution of children's print, digital, and audio books, as well as media and interactive products through its school reading events and trade channel; and operation of school-based book clubs and book fairs in the United States.

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