Stock Repurchase Plan Announced by Scholastic (NASDAQ:SCHL) Board of Directors

Scholastic (NASDAQ:SCHL) declared that its Board of Directors has approved a stock buyback plan on Friday, March 20th, RTT News reports. The company plans to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 23% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its stock is undervalued.

Scholastic Stock Performance

Shares of Scholastic stock opened at $37.25 on Friday. The stock has a market capitalization of $947.64 million, a price-to-earnings ratio of 15.02 and a beta of 1.17. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.67 and a quick ratio of 1.24. The business has a 50-day moving average of $34.26 and a 200 day moving average of $30.43. Scholastic has a 12 month low of $15.77 and a 12 month high of $38.94.

Scholastic (NASDAQ:SCHL) last issued its quarterly earnings results on Thursday, March 19th. The company reported ($0.15) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.37) by $0.22. The business had revenue of $329.10 million for the quarter, compared to analysts’ expectations of $331.53 million. Scholastic had a net margin of 3.88% and a return on equity of 2.44%. As a group, sell-side analysts forecast that Scholastic will post 0.84 earnings per share for the current year.

Scholastic Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Thursday, April 30th will be issued a $0.20 dividend. The ex-dividend date is Thursday, April 30th. This represents a $0.80 dividend on an annualized basis and a yield of 2.1%. Scholastic’s dividend payout ratio (DPR) is 32.26%.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Zacks Research lowered shares of Scholastic from a “strong-buy” rating to a “hold” rating in a report on Thursday, March 5th. Weiss Ratings upgraded shares of Scholastic from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, January 30th. Finally, B. Riley Financial upped their price objective on shares of Scholastic from $37.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Scholastic presently has an average rating of “Hold” and an average price target of $40.00.

Key Headlines Impacting Scholastic

Here are the key news stories impacting Scholastic this week:

• Positive Sentiment: Q3 EPS outperformed consensus (loss of $0.15 vs. est. $0.37 loss), which relieved near‑term earnings concerns and helped lift the stock. Article Title
• Positive Sentiment: The Board authorized a $200 million modified Dutch‑auction tender offer (expected price $36–$40) — immediate buyback demand and signaling of undervaluation support the rally. Article Title
• Positive Sentiment: The repurchase action is part of a larger capital‑return and balance‑sheet plan (Board set a $300M total repurchase authorization and a long‑term net leverage target of 2.0–2.5x adjusted EBITDA), which reduces capital allocation uncertainty. Article Title
• Positive Sentiment: Analyst action: B. Riley raised its price target to $40 (maintaining a “neutral” rating), implying upside and lending incremental analyst support. Article Title
• Positive Sentiment: The company declared a quarterly dividend of $0.20 per share, reinforcing shareholder returns alongside buybacks. Article Title
• Neutral Sentiment: Coverage and commentary pieces (Seeking Alpha, transcripts) frame the results as evidence of strategic progress and management’s focus on margin expansion — useful context but secondary to the concrete buyback and EPS beat. Article Title
• Negative Sentiment: Revenue narrowly missed estimates ($329.1M vs. $331.5M expected) and the company still reports a small net loss and negative margin, highlighting operational challenges in core book sales that could limit upside without durable revenue improvement. Article Title

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.