Shares of Scholastic Corporation (NASDAQ: SCHL) increased by 4.9% during trading on Tuesday, reaching a high of $29.03 before concluding the day at $28.94. Approximately 140,968 shares exchanged hands, a notable decline 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
Recent evaluations by industry analysts have influenced Scholastic’s stock trajectory. On December 8, 2023, Zacks Research downgraded Scholastic from a “hold” to a “strong sell” rating. Conversely, B. Riley initiated coverage on September 3, 2023, assigning a “buy” rating and setting a target price of $37.00 per share. In contrast, Wall Street Zen downgraded the stock from “buy” to “hold” on September 5, 2023. Additionally, Weiss Ratings reaffirmed a “sell (d+)” rating for Scholastic three days later. Currently, one analyst recommends buying the stock, while two suggest selling. According to MarketBeat.com, the consensus rating for Scholastic stands at “Reduce,” with an average target price of $37.00.
Financial Performance and Dividend Announcement
On December 18, 2023, Scholastic reported its quarterly earnings, revealing earnings per share (EPS) of $2.17, surpassing analysts’ expectations of $2.07 by $0.10. The company’s revenue for the quarter reached $551.10 million, slightly below the estimated $556.72 million. Scholastic posted a net margin of -0.21% and a return on equity of 2.67%. In the same quarter the previous year, the company reported an EPS of $1.82. Forecasts indicate that Scholastic is expected to achieve an EPS of 0.84 for the current year.
In addition to its earnings report, Scholastic announced a quarterly dividend of $0.20 per share, set to be paid on March 16, 2024. Shareholders of record as of January 30, 2024 will be eligible for this dividend. The ex-dividend date is also on January 30, 2024, which translates to an annualized dividend of $0.80 and a dividend yield of 2.8%. Notably, Scholastic’s dividend payout ratio currently stands at -400.00%.
Institutional Investment Activity
Recent trading activity has seen institutional investors making significant adjustments to their holdings in Scholastic. Verition Fund Management LLC acquired a new stake in the company valued at $7,288,000 during the third quarter. AllianceBernstein L.P. significantly boosted its stake by 879.3%, owning 1,159,261 shares worth $31,741,000 after acquiring an additional 1,040,880 shares. Creative Planning increased its position in Scholastic by 33.6%, owning 31,954 shares valued at $875,000 following an acquisition of 8,037 shares in the last quarter. Other notable changes included Shay Capital LLC purchasing a new position worth approximately $620,000 and Brooklyn Investment Group expanding its stake by 531.3%, now holding 25,826 shares valued at $707,000. Institutional investors currently hold 82.57% of Scholastic’s stock.
Scholastic Corporation is recognized globally for its commitment to children’s publishing, education technology, and distribution services. The company operates through three primary segments: Children’s Book Publishing and Distribution, Education Technology, and International operations. Scholastic produces a diverse range of children’s literature under various well-known imprints, including Scholastic Press, Graphix, and Chicken House.
