Scholastic (SCHL) Downgraded to Hold at BidaskClub

BidaskClub lowered shares of Scholastic (NASDAQ:SCHL) from a buy rating to a hold rating in a research report report published on Monday.

Several other research analysts have also issued reports on the company. TheStreet lowered Scholastic from a b- rating to a c rating in a report on Monday, January 22nd. Gabelli reiterated a buy rating on shares of Scholastic in a report on Friday, March 23rd. Finally, Zacks Investment Research lowered Scholastic from a strong-buy rating to a hold rating in a report on Thursday, April 5th. Three investment analysts have rated the stock with a hold rating and one has given a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $41.00.

Shares of Scholastic opened at $43.40 on Monday, MarketBeat.com reports. Scholastic has a one year low of $42.51 and a one year high of $42.87. The stock has a market cap of $1.50 billion, a P/E ratio of 34.19 and a beta of 0.75.

Scholastic (NASDAQ:SCHL) last announced its earnings results on Wednesday, March 21st. The company reported ($0.30) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.05. The company had revenue of $344.70 million for the quarter, compared to analyst estimates of $350.10 million. Scholastic had a positive return on equity of 3.58% and a negative net margin of 1.00%. The firm’s revenue for the quarter was up 2.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.36) EPS. research analysts forecast that Scholastic will post 1.45 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, June 15th. Shareholders of record on Monday, April 30th will be issued a $0.15 dividend. The ex-dividend date is Friday, April 27th. This represents a $0.60 annualized dividend and a yield of 1.38%. Scholastic’s payout ratio is currently 32.79%.

Scholastic declared that its Board of Directors has initiated a stock repurchase program on Wednesday, March 21st that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

In other Scholastic news, CEO Richard Robinson sold 1,200 shares of the stock in a transaction that occurred on Thursday, March 29th. The stock was sold at an average price of $39.23, for a total value of $47,076.00. Following the transaction, the chief executive officer now owns 4,356,228 shares in the company, valued at $170,894,824.44. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Andrews S. Hedden sold 2,000 shares of the stock in a transaction that occurred on Thursday, March 29th. The stock was sold at an average price of $39.08, for a total value of $78,160.00. Following the completion of the transaction, the executive vice president now owns 32,618 shares in the company, valued at approximately $1,274,711.44. The disclosure for this sale can be found here. In the last quarter, insiders sold 241,740 shares of company stock worth $9,491,361. Corporate insiders own 22.30% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. BlackRock Inc. raised its stake in shares of Scholastic by 1.1% in the first quarter. BlackRock Inc. now owns 3,625,270 shares of the company’s stock worth $140,806,000 after purchasing an additional 39,904 shares during the last quarter. Alliancebernstein L.P. raised its stake in shares of Scholastic by 1.9% in the fourth quarter. Alliancebernstein L.P. now owns 1,983,802 shares of the company’s stock worth $79,570,000 after purchasing an additional 37,031 shares during the last quarter. Northern Trust Corp raised its stake in shares of Scholastic by 0.5% in the first quarter. Northern Trust Corp now owns 1,226,335 shares of the company’s stock worth $47,631,000 after purchasing an additional 5,518 shares during the last quarter. Zuckerman Investment Group LLC raised its stake in shares of Scholastic by 2.8% in the fourth quarter. Zuckerman Investment Group LLC now owns 649,309 shares of the company’s stock worth $26,044,000 after purchasing an additional 17,396 shares during the last quarter. Finally, Neuberger Berman Group LLC raised its stake in shares of Scholastic by 6.3% in the first quarter. Neuberger Berman Group LLC now owns 607,521 shares of the company’s stock worth $23,596,000 after purchasing an additional 35,915 shares during the last quarter. 84.95% of the stock is owned by hedge funds and other institutional investors.

About Scholastic

Scholastic Corporation, together with its subsidiaries, publishes and distributes children's books worldwide. It operates through three segments: Children's Book Publishing and Distribution, Education, and International. The Children's Book Publishing and Distribution segment engages in the publication and distribution of children's books, e-books, media, and interactive products through its school book clubs and book fairs, and trade channel.

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