Scholastic Shares Rise 4.9% Amid Analyst Upgrades and Earnings Report
Shares of Scholastic Corporation (NASDAQ:SCHL) rose by 4.9% during trading on Tuesday, reaching a high of $29.03 before closing at $28.94. Approximately 140,968 shares changed hands, a significant decrease of 57% compared to the average daily volume of 327,440 shares. The stock had previously closed at $27.60.
Analyst Ratings Shift for Scholastic
Scholastic has recently garnered attention from several research analysts. On December 8, 2023, Zacks Research downgraded the stock from a “hold” rating to a “strong sell” rating. Conversely, B. Riley initiated coverage with a “buy” rating and set a price target of $37.00. Additionally, Wall Street Zen reduced its rating from “buy” to “hold” on September 5, 2023. Meanwhile, Weiss Ratings reaffirmed a “sell (D+)” rating on December 16, 2023. Currently, one analyst has rated the stock as a buy, while two have issued sell ratings. According to MarketBeat.com, Scholastic has a consensus rating of “Reduce” with an average target price of $37.00.
The latest earnings report, released on December 18, 2023, revealed that Scholastic posted earnings of $2.17 per share for the quarter, exceeding analysts’ expectations of $2.07 by $0.10. Revenue for the quarter was $551.10 million, slightly below the anticipated $556.72 million. The company reported a negative net margin of 0.21% and a positive return on equity of 2.67%. In the same quarter of the previous year, Scholastic had reported earnings of $1.82 per share. Analysts forecast an earnings per share (EPS) of 0.84 for the current fiscal year.
Dividend Announcement and Institutional Activity
Scholastic also announced a quarterly dividend of $0.20 per share, which will be paid on March 16, 2024, to shareholders of record on January 30, 2024. The ex-dividend date is also set for January 30, 2024. This translates to an annualized dividend of $0.80, yielding 2.8%. Notably, Scholastic’s dividend payout ratio (DPR) currently stands at -400.00%.
Institutional investors have actively adjusted their holdings in Scholastic. Verition Fund Management LLC acquired a new stake worth $7,288,000 in the third quarter. AllianceBernstein L.P. increased its stake by an impressive 879.3%, now holding 1,159,261 shares valued at $31,741,000 after adding 1,040,880 shares during the period. Additionally, Creative Planning raised its position by 33.6%, now owning 31,954 shares valued at $875,000. Shay Capital LLC and Brooklyn Investment Group also made notable investments in Scholastic, increasing their stakes significantly.
Approximately 82.57% of Scholastic’s stock is currently held by institutional investors, reflecting strong confidence in the company’s future prospects.
Scholastic Corporation is a global leader in children’s publishing and education services, operating through three main segments: Children’s Book Publishing and Distribution, Education Technology, and International operations. The company’s portfolio includes a diverse range of children’s literature, including novels, nonfiction titles, and classroom magazines produced under renowned imprints such as Scholastic Press, Graphix, and Chicken House.
As the educational landscape continues to evolve, Scholastic’s robust performance and strategic investment activities suggest a keen focus on maintaining its market position.
