Scholastic Corp (NASDAQ:SCHL) Sees Large Increase in Short Interest

Scholastic Corp (NASDAQ:SCHL) saw a significant growth in short interest during the month of July. As of July 31st, there was short interest totalling 1,069,200 shares, a growth of 9.3% from the June 30th total of 978,100 shares. Based on an average trading volume of 168,000 shares, the days-to-cover ratio is currently 6.4 days. Approximately 3.6% of the company’s shares are sold short.

Shares of SCHL traded up $0.01 during mid-day trading on Thursday, reaching $33.02. 95,410 shares of the company’s stock traded hands, compared to its average volume of 138,178. The stock has a market cap of $1.16 billion, a P/E ratio of 30.57 and a beta of 0.84. The stock’s 50-day moving average is $33.42 and its two-hundred day moving average is $37.58. Scholastic has a 12 month low of $31.38 and a 12 month high of $47.94.

Scholastic (NASDAQ:SCHL) last announced its quarterly earnings results on Thursday, July 25th. The company reported $1.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.29. The firm had revenue of $470.70 million during the quarter, compared to analyst estimates of $456.80 million. Scholastic had a return on equity of 3.49% and a net margin of 0.94%. Scholastic’s quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.45 earnings per share. As a group, equities research analysts forecast that Scholastic will post 1.29 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, September 16th. Investors of record on Friday, August 30th will be issued a $0.15 dividend. The ex-dividend date is Thursday, August 29th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.82%. Scholastic’s payout ratio is 55.56%.

Several hedge funds and other institutional investors have recently made changes to their positions in SCHL. Macquarie Group Ltd. purchased a new stake in shares of Scholastic in the fourth quarter valued at approximately $28,000. Investors Research Corp purchased a new stake in shares of Scholastic in the first quarter valued at approximately $48,000. Tower Research Capital LLC TRC boosted its holdings in shares of Scholastic by 764.8% in the second quarter. Tower Research Capital LLC TRC now owns 1,522 shares of the company’s stock valued at $51,000 after purchasing an additional 1,346 shares during the period. Pathstone Family Office LLC boosted its holdings in shares of Scholastic by 6,457.4% in the second quarter. Pathstone Family Office LLC now owns 4,000 shares of the company’s stock valued at $133,000 after purchasing an additional 3,939 shares during the period. Finally, Jefferies Group LLC purchased a new stake in shares of Scholastic in the second quarter valued at approximately $229,000. Hedge funds and other institutional investors own 81.37% of the company’s stock.

Several equities research analysts have weighed in on the company. BidaskClub raised Scholastic from a “sell” rating to a “hold” rating in a research note on Tuesday, August 6th. ValuEngine cut Scholastic from a “hold” rating to a “sell” rating in a research note on Friday, June 14th. Finally, Zacks Investment Research raised Scholastic from a “strong sell” rating to a “buy” rating and set a $39.00 target price on the stock in a research note on Thursday, August 1st. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the company. Scholastic presently has a consensus rating of “Hold” and an average target price of $41.50.

About Scholastic

Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education, and International. The Children's Book Publishing and Distribution segment publishes and distributes children's books, e-books, media, and interactive products through its school book club and school book fair channels, as well as through its trade channel.

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