Scholastic (NASDAQ:SCHL) Shares Gap Up Following 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)'s stock price 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.

The company reported $0.87 earnings per share for the quarter, beating analysts' consensus estimates of $0.85 by $0.02. Scholastic had a negative net margin of 0.12% and a positive return on equity of 1.38%. The business had revenue of $508.30 million for the quarter, compared to analysts' expectations of $494.59 million.

Scholastic Dividend Announcement

The firm 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 is Friday, August 29th. This represents a $0.80 dividend on an annualized basis and a yield of 3.14%. Scholastic's dividend payout ratio is -2,000.00%.

Analyst Ratings Changes

Separately, Wall Street Zen lowered shares of Scholastic from a "buy" rating to a "hold" rating in a research report on Saturday.

Institutional Investors Weigh In On Scholastic

A number of institutional investors and hedge funds have recently made changes to their positions in SCHL. Signaturefd LLC boosted its stake in shares of Scholastic by 819.5% in 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 acquired a new position in Scholastic in the fourth quarter valued at about $33,000. GAMMA Investing LLC increased its stake in Scholastic by 182.4% during the 1st quarter. GAMMA Investing LLC now owns 1,776 shares of the company's stock worth $34,000 after purchasing an additional 1,147 shares in the last quarter. CWM LLC raised its holdings in shares of Scholastic by 508.7% during the first quarter. CWM LLC now owns 4,194 shares of the company's stock worth $79,000 after acquiring an additional 3,505 shares during the period. Finally, KLP Kapitalforvaltning AS acquired a new stake in shares of Scholastic in the 4th quarter valued at about $96,000. Institutional investors own 82.57% of the company's stock.

Scholastic Price Performance

The company has a 50 day simple moving average of $20.11 and a 200 day simple moving average of $19.41. The stock has a market cap of $715.00 million, a P/E ratio of -636.13 and a beta of 1.08. The company has a current ratio of 1.23, a quick ratio of 0.79 and a debt-to-equity ratio of 0.29.

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.