Zacks Research Downgrades Scholastic (NASDAQ:SCHL) to Strong Sell

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

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Scholastic in a research note on Thursday, June 18th. B. Riley Financial boosted their price objective on Scholastic from $40.00 to $42.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 8th. Finally, Wall Street Zen lowered Scholastic from a “buy” rating to a “hold” rating in a report on Saturday, April 25th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $42.00.

Scholastic Price Performance

SCHL stock opened at $40.63 on Monday. The firm has a market cap of $883.30 million, a price-to-earnings ratio of 17.36, a PEG ratio of 1.96 and a beta of 0.99. The company has a quick ratio of 0.73, a current ratio of 1.23 and a debt-to-equity ratio of 0.10. The company’s fifty day simple moving average is $43.80 and its 200 day simple moving average is $39.10. Scholastic has a 12-month low of $22.68 and a 12-month high of $48.07.

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

Hedge Funds Weigh In On Scholastic

Hedge funds have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Scholastic by 4.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,851 shares of the company’s stock worth $262,000 after buying an additional 630 shares during the last quarter. Quantinno Capital Management LP lifted its stake in shares of Scholastic by 3.2% in the 1st quarter. Quantinno Capital Management LP now owns 23,186 shares of the company’s stock valued at $906,000 after purchasing an additional 729 shares during the period. Deutsche Bank AG grew its stake in Scholastic by 4.1% in the fourth quarter. Deutsche Bank AG now owns 20,829 shares of the company’s stock worth $617,000 after purchasing an additional 824 shares during the period. SG Americas Securities LLC lifted its position in Scholastic by 8.3% during the fourth 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 stake 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 worth $1,682,000 after acquiring an additional 1,509 shares in the last quarter. Hedge funds and other institutional investors own 82.57% of the company’s stock.

Trending Headlines about Scholastic

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.