Scholastic (NASDAQ:SCHL) Shares Gap Up After Earnings Beat

Scholastic Co. (NASDAQ:SCHL) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $30.18, but opened at $32.81. Scholastic shares last traded at $32.76, with a volume of 77,497 shares changing hands.

The company reported ($2.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($2.48) by $0.35. The business had revenue of $237.20 million during the quarter, compared to the consensus estimate of $233.49 million. Scholastic had a net margin of 0.76% and a return on equity of 3.34%. During the same period last year, the business posted ($2.20) EPS.

Scholastic Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Thursday, October 31st will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.50%. The ex-dividend date of this dividend is Thursday, October 31st. Scholastic’s payout ratio is presently 55.17%.

Analyst Ratings Changes

Separately, StockNews.com raised Scholastic from a “hold” rating to a “buy” rating in a report on Friday.

Insider Buying and Selling

In other news, EVP Iole Lucchese bought 1,654 shares of the firm’s stock in a transaction dated Tuesday, July 23rd. The shares were bought at an average price of $30.49 per share, with a total value of $50,430.46. Following the completion of the transaction, the executive vice president now owns 74,264 shares of the company’s stock, valued at $2,264,309.36. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Scholastic news, CEO Warwick Peter purchased 1,674 shares of the stock in a transaction that occurred on Tuesday, July 23rd. The shares were acquired at an average cost of $30.46 per share, with a total value of $50,990.04. Following the completion of the transaction, the chief executive officer now owns 104,349 shares in the company, valued at $3,178,470.54. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Iole Lucchese acquired 1,654 shares of the business’s stock in a transaction on Tuesday, July 23rd. The stock was acquired at an average cost of $30.49 per share, with a total value of $50,430.46. Following the acquisition, the executive vice president now directly owns 74,264 shares in the company, valued at $2,264,309.36. The disclosure for this purchase can be found here. 18.62% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Scholastic

A number of hedge funds and other institutional investors have recently made changes to their positions in SCHL. Allianz Asset Management GmbH grew its position in Scholastic by 55.6% during the fourth quarter. Allianz Asset Management GmbH now owns 64,154 shares of the company’s stock worth $2,419,000 after buying an additional 22,933 shares in the last quarter. Bragg Financial Advisors Inc increased its position in shares of Scholastic by 0.7% in the fourth quarter. Bragg Financial Advisors Inc now owns 372,999 shares of the company’s stock worth $14,062,000 after purchasing an additional 2,468 shares during the period. Allspring Global Investments Holdings LLC raised its stake in Scholastic by 13.7% in the first quarter. Allspring Global Investments Holdings LLC now owns 5,776 shares of the company’s stock valued at $218,000 after purchasing an additional 697 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in Scholastic by 11.7% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 15,356 shares of the company’s stock worth $579,000 after purchasing an additional 1,612 shares during the period. Finally, Quent Capital LLC acquired a new stake in Scholastic during the first quarter worth about $215,000. 82.57% of the stock is currently owned by institutional investors and hedge funds.

Scholastic Stock Performance

The firm’s fifty day simple moving average is $30.89 and its 200 day simple moving average is $34.20. The stock has a market capitalization of $904.81 million, a P/E ratio of 22.10 and a beta of 1.03.

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.