Scholastic (NASDAQ:SCHL) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Scholastic's stock rating has been downgraded from a "buy" to a "hold" by Wall Street Zen, while B. Riley initiated coverage with a "buy" rating and a price target of $37.00.
• The company reported a quarterly earnings per share (EPS) of $0.87, surpassing expectations, with revenue reaching $508.30 million compared to the consensus estimate of $494.59 million.
• Institutional investors showed increased interest in Scholastic, with notable increases in holdings by firms such as Caxton Associates LLP and Brevan Howard Capital Management LP during the second quarter.

Wall Street Zen lowered shares of Scholastic (NASDAQ:SCHL - Free Report) from a buy rating to a hold rating in a research report released on Friday.

Separately, B. Riley assumed coverage on shares of Scholastic in a research note on Wednesday, September 3rd. They issued a "buy" rating and a $37.00 price objective for the company. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat, Scholastic has an average rating of "Buy" and a consensus price target of $37.00.

Scholastic Stock Up 0.1%

NASDAQ:SCHL traded up $0.04 during trading hours on Friday, reaching $26.17. The company's stock had a trading volume of 111,076 shares, compared to its average volume of 330,530. The company has a market capitalization of $655.46 million, a P/E ratio of -654.80 and a beta of 1.24. Scholastic has a 12 month low of $15.77 and a 12 month high of $34.18. 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 50 day moving average price of $24.15 and a two-hundred day moving average price of $20.62.

Scholastic (NASDAQ:SCHL - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The company reported $0.87 EPS for the quarter, topping analysts' consensus estimates of $0.85 by $0.02. The company had revenue of $508.30 million during the quarter, compared to the consensus estimate of $494.59 million. Scholastic had a negative net margin of 0.12% and a positive return on equity of 1.39%. Scholastic has set its FY 2026 guidance at EPS. Equities analysts predict that Scholastic will post 0.84 EPS for the current fiscal year.

Scholastic Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders 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 dividend on an annualized basis and a dividend yield of 3.1%. Scholastic's payout ratio is -2,000.00%.

Institutional Investors Weigh In On Scholastic

Large 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 second quarter. Signaturefd LLC now owns 1,223 shares of the company's stock valued at $26,000 after buying an additional 1,090 shares during the last quarter. Lazard Asset Management LLC purchased a new stake in shares of Scholastic during the fourth quarter valued at $33,000. GAMMA Investing LLC grew its holdings in shares of Scholastic by 182.4% during the first quarter. GAMMA Investing LLC now owns 1,776 shares of the company's stock valued at $34,000 after buying 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 second quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company's stock valued at $66,000 after buying an additional 2,593 shares during the last quarter. Finally, CWM LLC grew 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 valued at $79,000 after buying an additional 3,505 shares during the last quarter. 82.57% of the stock is owned by hedge funds and other institutional investors.

About Scholastic

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.