Scholastic (NASDAQ:SCHL) Downgraded to Strong Sell Rating by Zacks Research

Posted by Geri Gentry on Jul 29th, 2026

Zacks Research cut shares of Scholastic (NASDAQ:SCHL – Free Report) from a hold rating to a strong sell rating in a research report released on Monday morning,Zacks.com reports.

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

Read Our Latest Stock Report on Scholastic

Scholastic Stock Performance

SCHL opened at $40.63 on Monday. The stock has a market cap of $883.30 million, a PE ratio of 17.36, a P/E/G ratio of 1.96 and a beta of 0.99. The company has a current ratio of 1.23, a quick ratio of 0.73 and a debt-to-equity ratio of 0.10. Scholastic has a 1 year low of $22.68 and a 1 year high of $48.07. The stock’s 50 day simple moving average is $43.80 and its 200-day simple moving average is $39.10.

Scholastic (NASDAQ:SCHL – Get Free Report) last issued 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 business had revenue of $476.10 million during 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 period in the prior year, the company posted $0.59 earnings per share. Sell-side analysts forecast that Scholastic will post 1.6 EPS for the current year.

Scholastic Increases Dividend

The business also recently disclosed 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 is an increase from Scholastic’s previous quarterly dividend of $0.20. This represents a $1.00 annualized dividend and a yield of 2.5%. The ex-dividend date is Monday, August 31st. Scholastic’s dividend payout ratio is currently 34.19%.

Institutional Investors Weigh In On Scholastic

A number of hedge funds have recently made changes to their positions in SCHL. Tower Research Capital LLC TRC grew its stake in Scholastic by 458.1% during the second quarter. Tower Research Capital LLC TRC now owns 3,159 shares of the company’s stock worth $66,000 after buying an additional 2,593 shares during the last quarter. Marquette Asset Management LLC bought a new position in shares of Scholastic in the fourth quarter valued at approximately $116,000. BNP Paribas Financial Markets raised its stake in shares of Scholastic by 127.4% in the third quarter. BNP Paribas Financial Markets now owns 5,197 shares of the company’s stock valued at $142,000 after acquiring an additional 2,912 shares during the last quarter. Yousif Capital Management LLC acquired a new position in shares of Scholastic in the 4th quarter worth approximately $181,000. Finally, Bank of Montreal Can acquired a new position in shares of Scholastic in the 4th quarter worth approximately $211,000. Institutional investors and hedge funds own 82.57% of the company’s stock.

Scholastic News Roundup

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

Scholastic Company Profile

(Get Free Report)

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.