What Happened?
Shares of educational publishing and media company Scholastic (NASDAQ: SCHL) jumped 5% in the afternoon session after reports of a positive consensus rating from Wall Street analysts. The children's publishing, education, and media company currently holds a "Buy" consensus rating, according to three financial analysts. This collective positive outlook suggests that market experts see potential for the stock's value to increase. Such ratings often influence investor sentiment and can be a catalyst for stock price movements, reflecting confidence in the company's financial health and future prospects.
After the initial pop the shares cooled down to $25.74, up 3.9% from previous close.
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What Is The Market Telling Us
Scholastic’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 1.2% on the news that B. Riley initiated coverage on the stock with a "Buy" rating and a $37 price target. The new rating from the investment firm suggests a belief that the educational publishing and media company's shares are poised for growth. An initiation of coverage by an analyst can often attract new investor attention to a stock. The "Buy" rating indicates a strong positive outlook, and the $37 price target implies a potential upside from its recent trading levels, signaling confidence in the company's future performance.
Scholastic is up 21.8% since the beginning of the year, but at $25.74 per share, it is still trading 19.7% below its 52-week high of $32.04 from September 2024. Investors who bought $1,000 worth of Scholastic’s shares 5 years ago would now be looking at an investment worth $1,153.
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