BidaskClub Lowers Scholastic (NASDAQ:SCHL) to Strong Sell

BidaskClub downgraded shares of Scholastic (NASDAQ:SCHL) from a sell rating to a strong sell rating in a research note released on Tuesday, BidAskClub reports.

Several other brokerages have also commented on SCHL. Zacks Investment Research raised shares of Scholastic from a sell rating to a hold rating in a report on Thursday, November 21st. ValuEngine raised shares of Scholastic from a hold rating to a buy rating in a report on Saturday, December 21st.

NASDAQ SCHL traded down $0.17 on Tuesday, hitting $36.45. The company had a trading volume of 2,811 shares, compared to its average volume of 150,289. The company has a market capitalization of $1.27 billion, a PE ratio of 33.69 and a beta of 0.80. The company’s fifty day moving average price is $38.11 and its 200-day moving average price is $36.41. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.57 and a quick ratio of 1.02. Scholastic has a 12-month low of $31.38 and a 12-month high of $45.80.

Scholastic (NASDAQ:SCHL) last issued its quarterly earnings results on Thursday, December 19th. The company reported $2.06 EPS for the quarter, topping the consensus estimate of $1.77 by $0.29. The company had revenue of $597.20 million during the quarter, compared to analyst estimates of $591.00 million. Scholastic had a net margin of 1.07% and a return on equity of 3.73%. The firm’s revenue was down 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.09 EPS. On average, sell-side analysts anticipate that Scholastic will post 1.2 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Friday, January 31st will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Thursday, January 30th. This represents a $0.60 annualized dividend and a yield of 1.65%. Scholastic’s dividend payout ratio (DPR) is presently 55.56%.

Institutional investors and hedge funds have recently made changes to their positions in the business. Bank of New York Mellon Corp boosted its stake in Scholastic by 4.4% during the 2nd quarter. Bank of New York Mellon Corp now owns 864,583 shares of the company’s stock worth $28,739,000 after purchasing an additional 36,151 shares during the last quarter. Engine Capital Management LP acquired a new stake in Scholastic during the 2nd quarter worth $462,000. Zuckerman Investment Group LLC boosted its stake in Scholastic by 7.6% during the 2nd quarter. Zuckerman Investment Group LLC now owns 699,675 shares of the company’s stock worth $23,257,000 after purchasing an additional 49,319 shares during the last quarter. California Public Employees Retirement System boosted its stake in Scholastic by 12.4% during the 3rd quarter. California Public Employees Retirement System now owns 78,057 shares of the company’s stock worth $2,947,000 after purchasing an additional 8,628 shares during the last quarter. Finally, State of Tennessee Treasury Department boosted its stake in Scholastic by 48.4% during the 3rd quarter. State of Tennessee Treasury Department now owns 24,022 shares of the company’s stock worth $907,000 after purchasing an additional 7,835 shares during the last quarter. 78.61% of the stock is currently owned by institutional investors.

Scholastic Company Profile

Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education, and International. The Children's Book Publishing and Distribution segment publishes and distributes children's books, e-books, media, and interactive products through its school book club and school book fair channels, as well as through its trade channel.

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