Scholastic Corporation (SCHL) - Stock Analysis
Last updated: Jun 22, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Capital‑return‑driven setup: a large Dutch-auction tender ($200M) and $300M total authorization that could retire ~23–25% of shares, combined with >$400M liquidity from real‑estate sales and a recent EPS beat, have driven a ~16% 21‑day rally; price sits within the $36–40 tender band, creating a strong near‑term bid and tradable upside into the tender window and dividend record date.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: • Profitability Rebound • Cash Conversion • Low Valuation SCHL's latest quarter showed a sharp profitability rebound and attractive valuation support, but uneven cash conversion and weaker full-year results still temper the outlook.
Price Behavior
Key Price Behavior Insights: • Breakout pullback • Support holding • Resistance overhead Support Level: $42.25-$42.38 Resistance Level: $44.01 Over the last month, SCHL stayed in a short-term uptrend but has pulled back from its breakout, with $42.25-$42.83 acting as near-term support and $44.01 as the key resistance.
AI Summary
SCHL should now be viewed as a potential rerating candidate rather than a broken publisher, because the latest quarter proved it can still generate ~19% net margins and strong interest coverage while management returned capital via tender offer, but the trade hinges on whether that profitability is durable and backed by positive cash conversion rather than another one-off rebound.
Description
Scholastic Corporation is a global publisher and distributor of children’s books and educational materials, operating through three reporting segments: Children’s Book Publishing and Distribution, Education Solutions, and International. The company produces and sells original and licensed trade and novelty titles, e-books and interactive products through school-based book clubs and fairs, retail and online channels, and supplies classroom magazines, supplemental curricula, reference resources and related support services. Founded in 1920, Scholastic is headquartered in New York City and distributes directly to schools, libraries and consumers worldwide.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Apr 9 | Apr 16 | SCHL | Scholastic Corporation | Capital‑return‑driven setup: a large Dutch-auction tender ($200M) and $300M total authorization that could retire ~23–25% of shares, combined with >$400M liquidity from real‑estate sales and a recent EPS beat, have driven a ~16% 21‑day rally; price sits within the $36–40 tender band, creating a strong near‑term bid and tradable upside into the tender window and dividend record date. | Closed | +0.8% |
| Mar 23 | Mar 30 | SCHL | Scholastic Corporation | Scholastic just announced a $200M Dutch-auction tender at $36–40 commencing March 23, 2026 plus a $0.20 quarterly dividend and a Q3 EPS beat boosted by ~$120M of asset-sale gains, driving the stock ~20% higher over 21 days and through its 200‑day high; this concentrated capital-return program is a powerful short-term re‑rating catalyst despite cash‑flow quality risks. | Closed | +1.1% |