Scholastic (NASDAQ:SCHL) Downgraded to “Strong Sell” Rating by Zacks Research

Scholastic (NASDAQ:SCHL) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

SCHL has been the topic of several other research reports. B. Riley Financial upped their price objective on Scholastic from $40.00 to $42.00 and gave the stock a “neutral” rating in a report on Wednesday, July 8th. Weiss Ratings reissued a “hold (c+)” rating on shares of Scholastic in a research note on Thursday, June 18th. Finally, Wall Street Zen downgraded Scholastic from a “buy” rating to a “hold” rating in a research report on Saturday, April 25th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $42.00.

Scholastic Trading Down 0.3%

SCHL opened at $40.63 on Monday. Scholastic has a 1-year low of $22.68 and a 1-year high of $48.07. The stock has a market capitalization of $883.30 million, a PE ratio of 17.36, a PEG ratio of 1.96 and a beta of 0.99. The company has a current ratio of 1.23, a quick ratio of 0.73 and a debt-to-equity ratio of 0.10. The firm has a 50-day moving average price of $43.80 and a two-hundred day moving average price of $39.10.

Scholastic (NASDAQ:SCHL) last announced its earnings results on Thursday, July 23rd. The company reported $2.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.16 by $0.03. Scholastic had a net margin of 3.58% and a return on equity of 5.29%. The company had revenue of $476.10 million for the quarter, compared to analyst estimates of $517.06 million. During the same period in the prior year, the business earned $0.59 earnings per share. As a group, equities analysts anticipate that Scholastic will post 1.6 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Scholastic by 4.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,851 shares of the company’s stock valued at $262,000 after purchasing an additional 630 shares in the last quarter. Quantinno Capital Management LP boosted its position in shares of Scholastic by 3.2% during the first quarter. Quantinno Capital Management LP now owns 23,186 shares of the company’s stock worth $906,000 after purchasing an additional 729 shares in the last quarter. Deutsche Bank AG grew its holdings in shares of Scholastic by 4.1% in the 4th quarter. Deutsche Bank AG now owns 20,829 shares of the company’s stock valued at $617,000 after buying an additional 824 shares during the period. SG Americas Securities LLC grew its holdings in shares of Scholastic by 8.3% in the 4th quarter. SG Americas Securities LLC now owns 15,690 shares of the company’s stock valued at $465,000 after buying an additional 1,201 shares during the period. Finally, Public Sector Pension Investment Board increased its position in shares of Scholastic by 1.9% in the 2nd quarter. Public Sector Pension Investment Board now owns 80,195 shares of the company’s stock valued at $1,682,000 after buying an additional 1,509 shares in the last quarter. Institutional investors and hedge funds own 82.57% of the company’s stock.

Scholastic News Roundup

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic was identified as an oversold communication-services stock, with an RSI below 30. That technical condition may attract bargain hunters and support a potential rebound. Top 3 Tech And Telecom Stocks That Could Lead To Your Biggest Gains In July
• Neutral Sentiment: A dividend-related update has renewed investor attention around SCHL’s shareholder-return policy, although the available report does not specify a clearly positive or negative change. Scholastic Dividend Move Sparks Fresh Focus
• Neutral Sentiment: Sidoti made a small improvement to its Q1 2027 EPS forecast, to a loss of $3.11 from a projected loss of $3.12, and raised its Q1 2028 estimate to a loss of $3.31 from $3.48. These modest changes provide limited support but do not offset broader estimate reductions. Sidoti Scholastic Estimates
• Negative Sentiment: Scholastic’s outlook was cut despite reported book-fair momentum and cost controls. The guidance reduction raises concerns about near-term demand and profitability. SCHL Q2 Deep Dive: Guidance Cut Despite Book Fair Momentum and Cost Controls
• Negative Sentiment: Sidoti lowered its FY2027 EPS forecast to $1.44 from $2.62 and reduced several quarterly estimates, including Q3 2027 and Q4 2027. The revisions suggest analysts expect materially weaker earnings ahead. Sidoti Scholastic Earnings Estimate Revisions
• Negative Sentiment: The latest reported quarter showed an EPS beat, at $2.19 versus the $2.16 consensus, but revenue of $476.1 million fell well short of the $517.1 million estimate. The sales miss reinforces concerns about operating momentum.
• Negative Sentiment: A bearish analysis argues that Scholastic’s past performance does not support a favorable near-term outlook, adding to the pressure from reduced forecasts. Scholastic Corporation: A Look Back Does Not Bode Well For The Road Ahead

About Scholastic

Scholastic Corporation (NASDAQ: SCHL) is a global company dedicated to children’s publishing, education technology and distribution services. The company’s core business encompasses three primary segments: Children’s Book Publishing and Distribution, Education Technology, and International operations. Through its publishing arm, Scholastic produces and distributes a wide range of children’s books, novels, nonfiction titles and classroom magazines under well-known imprints such as Scholastic Press, Graphix and Chicken House.