Scholastic (NASDAQ:SCHL) Shares Gap Up on Earnings Beat

Key Points

• Scholastic Corporation (NASDAQ:SCHL) shares gapped up significantly on Friday, opening at $24.78 after closing at $21.55, driven by an earnings announcement that exceeded expectations.
• The company reported earnings per share of $0.87, surpassing analysts' estimates of $0.85, and generated revenues of $508.30 million compared to projections of $494.59 million.
• Scholastic declared a quarterly dividend of $0.20 per share, reflecting a 3.11% yield, with shareholders of record set to receive it on September 15th.
• Institutional investors hold approximately 82.57% of Scholastic's stock, indicating strong interest and confidence from major financial institutions.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $21.55, but opened at $24.78. Scholastic shares last traded at $25.38, with a volume of 127,816 shares changing hands.

The company reported $0.87 earnings per share for the quarter, topping analysts' consensus estimates of $0.85 by $0.02. Scholastic had a net margin of 1.17% and a return on equity of 4.19%. The firm had revenue of $508.30 million during the quarter, compared to analyst estimates of $494.59 million.

Scholastic Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be given 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 yield of 3.11%. Scholastic's dividend payout ratio (DPR) is currently 133.33%.

Hedge Funds Weigh In On Scholastic

Several institutional investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Scholastic by 4.2% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,221 shares of the company's stock valued at $282,000 after acquiring an additional 530 shares during the period. US Bancorp DE raised its stake in shares of Scholastic by 6.2% in the first quarter. US Bancorp DE now owns 11,137 shares of the company's stock valued at $210,000 after acquiring an additional 654 shares during the period. Sterling Capital Management LLC raised its stake in shares of Scholastic by 7.5% in the fourth quarter. Sterling Capital Management LLC now owns 9,444 shares of the company's stock valued at $201,000 after acquiring an additional 662 shares during the period. Signaturefd LLC raised its stake in shares of Scholastic by 819.5% in the second quarter. Signaturefd LLC now owns 1,223 shares of the company's stock valued at $26,000 after acquiring an additional 1,090 shares during the period. Finally, GAMMA Investing LLC raised its stake in shares of Scholastic by 182.4% in the first quarter. GAMMA Investing LLC now owns 1,776 shares of the company's stock valued at $34,000 after acquiring an additional 1,147 shares during the period. Institutional investors own 82.57% of the company's stock.

Scholastic Trading Up 19.4%

The firm has a market cap of $722.81 million, a PE ratio of 42.70 and a beta of 1.08. The company has a quick ratio of 0.79, a current ratio of 1.23 and a debt-to-equity ratio of 0.29. The company's 50 day moving average price is $19.77 and its two-hundred day moving average price is $19.32.

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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