Scholastic (NASDAQ:SCHL) Stock Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Scholastic’s stock moved above its 200-day moving average, trading as high as $47.75 and last changing hands at $46.69, signaling a recent technical breakout.
• Analyst sentiment remains cautious: several firms have issued Hold ratings, and MarketBeat shows a consensus target price of $42.00.
• The company has a $200 million stock buyback plan approved earlier this year, while institutional investors continue to hold a large majority of the shares.

Scholastic Corporation (NASDAQ:SCHL - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $38.18 and traded as high as $47.75. Scholastic shares last traded at $46.69, with a volume of 221,420 shares changing hands.

Analysts Set New Price Targets

Several analysts have recently commented on SCHL shares. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Scholastic in a research report on Thursday, June 18th. B. Riley Financial upped their price target on Scholastic from $40.00 to $42.00 and gave the company a "neutral" rating in a research report on Wednesday, July 8th. Wall Street Zen downgraded Scholastic from a "buy" rating to a "hold" rating in a research note on Saturday, April 25th. Finally, Zacks Research lowered Scholastic from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 19th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, Scholastic currently has a consensus rating of "Hold" and a consensus target price of $42.00.

Scholastic Stock Performance

The stock has a market cap of $1.02 billion, a price-to-earnings ratio of 18.83, a price-to-earnings-growth ratio of 1.49 and a beta of 0.99. The company's 50 day simple moving average is $42.87 and its two-hundred day simple moving average is $38.18.

Scholastic declared that its board has approved a stock repurchase plan on Friday, March 20th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 23% of its stock through open market purchases. Stock buyback plans are often an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Scholastic

Hedge funds and other institutional investors have recently modified their holdings of the company. Alliancebernstein L.P. grew its stake in shares of Scholastic by 879.3% in the 3rd quarter. Alliancebernstein L.P. now owns 1,159,261 shares of the company's stock valued at $31,741,000 after buying an additional 1,040,880 shares in the last quarter. Verition Fund Management LLC acquired a new position in Scholastic in the third quarter worth approximately $7,288,000. Thompson Siegel & Walmsley LLC bought a new position in Scholastic during the fourth quarter valued at approximately $7,070,000. Invesco Ltd. raised its position in Scholastic by 57.2% during the fourth quarter. Invesco Ltd. now owns 424,973 shares of the company's stock valued at $12,592,000 after acquiring an additional 154,668 shares in the last quarter. Finally, AQR Capital Management LLC raised its position in Scholastic by 160.5% during the first quarter. AQR Capital Management LLC now owns 157,436 shares of the company's stock valued at $2,972,000 after acquiring an additional 96,998 shares in the last quarter. 82.57% of the stock is currently owned by hedge funds and other 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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