Scholastic (NASDAQ:SCHL) Shares Gap Up Following Better-Than-Expected Earnings

Scholastic Co. (NASDAQ:SCHL)’s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. 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 traded.

The company reported ($2.13) EPS for the quarter, topping analysts’ consensus estimates of ($2.48) by $0.35. The company had revenue of $237.20 million during the quarter, compared to analysts’ expectations of $233.49 million. Scholastic had a return on equity of 3.34% and a net margin of 0.76%. During the same quarter in the previous year, the firm earned ($2.20) EPS.

Scholastic Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Thursday, October 31st will be issued a $0.20 dividend. The ex-dividend date is Thursday, October 31st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.50%. Scholastic’s dividend payout ratio (DPR) is currently 55.17%.

Analyst Upgrades and Downgrades

Separately, StockNews.com upgraded shares of Scholastic from a “hold” rating to a “buy” rating in a research report on Friday.

Insider Activity

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SCHL. Jacobs Levy Equity Management Inc. grew its position in shares of Scholastic by 16.4% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 306,017 shares of the company’s stock valued at $11,540,000 after buying an additional 43,199 shares during the last quarter. Acadian Asset Management LLC bought a new stake in Scholastic in the second quarter valued at approximately $1,295,000. Allianz Asset Management GmbH boosted its holdings in Scholastic by 55.6% in the fourth quarter. Allianz Asset Management GmbH now owns 64,154 shares of the company’s stock valued at $2,419,000 after acquiring an additional 22,933 shares during the last quarter. Russell Investments Group Ltd. increased its position in Scholastic by 24.7% during the 1st quarter. Russell Investments Group Ltd. now owns 26,754 shares of the company’s stock valued at $1,009,000 after purchasing an additional 5,299 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. raised its holdings in Scholastic by 11.7% during the 1st 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 last quarter. 82.57% of the stock is owned by institutional investors.

Scholastic Trading Up 6.2 %

The stock’s 50-day moving average price is $30.89 and its 200-day moving average price is $34.20. The stock has a market cap of $904.81 million, a price-to-earnings ratio of 22.10 and a beta of 1.03.

Scholastic Company Profile

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.