Scholastic (NASDAQ:SCHL) Shares Gap Down – Here’s What Happened

Scholastic Corporation (NASDAQ:SCHL)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $46.44, but opened at $42.38. Scholastic shares last traded at $43.9130, with a volume of 91,076 shares traded.

Key Headlines Impacting Scholastic

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Scholastic raised its quarterly dividend to $0.25 per share, a 25% increase from $0.20, signaling confidence in cash flow and returning more capital to shareholders.
• Positive Sentiment: The company projected fiscal 2027 adjusted EBITDA of $135 million to $145 million and revenue growth of 2% to 4%, indicating a return to growth after a challenging year. Scholastic projects 2%-4% revenue growth and $135M-$145M adjusted EBITDA in fiscal 2027, following 25% dividend increase
• Positive Sentiment: Fiscal 2026 adjusted EBITDA came in at $151.5 million, up 4% and in line with guidance, showing operating resilience despite a tougher environment. Scholastic Reports Fourth Quarter and Fiscal 2026 Results
• Neutral Sentiment: For the quarter, Scholastic reported earnings of $2.19 per share, above estimates of $2.16, but revenue of $476.1 million missed expectations of $517.1 million, leaving investors focused on the sales shortfall. Scholastic: Fiscal Q4 Earnings Snapshot
• Neutral Sentiment: Management highlighted a multi-year transformation and said fiscal 2026 showed the earnings power of a more focused Scholastic, but investors will likely wait for evidence that revenue growth is improving. Scholastic Corp (SCHL) Q4 2026 Earnings Call Highlights: Navigating Challenges with Strategic …
• Negative Sentiment: Scholastic’s lower-than-expected revenue and cautious outlook relative to analyst revenue expectations suggest near-term pressure on the stock despite the earnings beat.

Analysts Set New Price Targets

Several analysts recently issued reports on SCHL shares. Zacks Research cut shares of Scholastic from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 19th. B. Riley Financial raised their target price on shares of Scholastic from $40.00 to $42.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 8th. Wall Street Zen cut Scholastic from a “buy” rating to a “hold” rating in a report on Saturday, April 25th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Scholastic in a research report on Thursday, June 18th. Three equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $42.00.

Scholastic Price Performance

The stock has a market capitalization of $938.08 million, a price-to-earnings ratio of 18.44, a PEG ratio of 1.38 and a beta of 0.99. The business has a fifty day moving average of $43.78 and a 200 day moving average of $38.91.

Scholastic (NASDAQ:SCHL) last posted its earnings results on Thursday, July 23rd. The company reported $2.19 EPS for the quarter, beating analysts’ consensus estimates of $2.16 by $0.03. The company had revenue of $476.10 million for the quarter, compared to the consensus estimate of $517.06 million. Scholastic had a return on equity of 5.08% and a net margin of 3.58%.During the same quarter in the previous year, the business earned $0.59 earnings per share. On average, equities research analysts expect that Scholastic Corporation will post 2.61 EPS for the current year.

Scholastic Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.3%. This is a boost from Scholastic’s previous quarterly dividend of $0.20. The ex-dividend date of this dividend is Monday, August 31st. Scholastic’s payout ratio is 32.26%.

Institutional Investors Weigh In On Scholastic

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings 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 acquiring an additional 630 shares during the last quarter. Quantinno Capital Management LP increased its holdings in 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 last quarter. GAMMA Investing LLC raised its position in Scholastic by 29.5% in the fourth quarter. GAMMA Investing LLC now owns 3,289 shares of the company’s stock valued at $97,000 after purchasing an additional 749 shares during the period. Deutsche Bank AG raised its position in Scholastic by 4.1% in the fourth quarter. Deutsche Bank AG now owns 20,829 shares of the company’s stock valued at $617,000 after purchasing an additional 824 shares during the period. Finally, SG Americas Securities LLC lifted its stake in Scholastic by 8.3% during the fourth quarter. SG Americas Securities LLC now owns 15,690 shares of the company’s stock worth $465,000 after purchasing an additional 1,201 shares in the last quarter. 82.57% of the stock is owned by hedge funds and other institutional investors.

Scholastic Company Profile

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.