McGraw Hill (NYSE:MH) Shares Gap Up After Better-Than-Expected Earnings

McGraw Hill, Inc. (NYSE:MH)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $11.60, but opened at $12.45. McGraw Hill shares last traded at $12.9280, with a volume of 245,465 shares.

The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.48 by $0.11. McGraw Hill had a net margin of 1.68% and a return on equity of 57.92%. The firm had revenue of $549.90 million during the quarter. McGraw Hill’s quarterly revenue was up 2.7% compared to the same quarter last year.

Analyst Upgrades and Downgrades

MH has been the subject of several research analyst reports. BTIG Research reaffirmed a “buy” rating and issued a $19.00 price objective on shares of McGraw Hill in a research report on Friday, June 26th. Robert W. Baird reduced their target price on shares of McGraw Hill from $19.00 to $16.00 and set an “outperform” rating for the company in a report on Friday, June 12th. Needham & Company LLC restated a “buy” rating and set a $19.00 target price on shares of McGraw Hill in a research report on Monday, August 3rd. Morgan Stanley lowered their price target on shares of McGraw Hill from $21.00 to $18.00 and set an “overweight” rating on the stock in a report on Thursday, June 11th. Finally, The Goldman Sachs Group cut their price target on McGraw Hill from $19.00 to $17.00 and set a “buy” rating on the stock in a research report on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $18.47.

Institutional Trading of McGraw Hill

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. purchased a new position in McGraw Hill during the third quarter worth about $32,923,000. Alyeska Investment Group L.P. acquired a new stake in shares of McGraw Hill during the 3rd quarter worth approximately $23,744,000. BlackRock Inc. purchased a new stake in shares of McGraw Hill during the 2nd quarter valued at approximately $16,488,000. Norges Bank purchased a new stake in shares of McGraw Hill during the 4th quarter valued at approximately $18,485,000. Finally, Schroder Investment Management Group acquired a new position in McGraw Hill in the fourth quarter valued at approximately $14,856,000.

McGraw Hill Stock Up 11.2%

The company has a market capitalization of $2.47 billion and a PE ratio of 64.53. The company has a quick ratio of 0.61, a current ratio of 0.77 and a debt-to-equity ratio of 3.53. The firm has a 50-day moving average of $10.57 and a two-hundred day moving average of $12.29.

About McGraw Hill

McGraw Hill (NYSE:MH) is a global learning science company specializing in educational content, digital learning platforms, and assessment solutions. The company offers textbooks and course materials for K-12 and higher education, along with professional development resources for corporate and workforce training. Its digital solutions—including adaptive learning platforms and analytics-driven tools—support personalized instruction, progress tracking, and interactive engagement in both classroom and remote environments.

Founded in 1888 in New York City, McGraw Hill has evolved from a technical periodical publisher into one of the world’s leading providers of educational content and technology.