Houghton Mifflin Harcourt Company [NASDAQ: HMHC] jumped around 1.12 points on Monday, while shares priced at $7.10 at the close of the session, up 18.73%. The company report on March 29, 2021 that Houghton Mifflin Harcourt Enters Into Definitive Agreement to Divest HMH Books & Media Consumer Publishing Business for $349 Million.
Upon closing of transaction, HMH to become pure-play K-12 learning technology company.
Learning technology company Houghton Mifflin Harcourt (“HMH” or the “Company”) (Nasdaq: HMHC) today announced that it has entered into a definitive agreement to divest HMH Books & Media, its consumer publishing business, to HarperCollins Publishers, a division of News Corp (Nasdaq: NWSA), a global, diversified media and information services company, for a cash purchase price of $349 million.The divestiture enables HMH to focus singularly on K–12 education and accelerate growth momentum in digital sales, annual recurring revenue and free cash flow while paying down a significant portion of its debt.
Houghton Mifflin Harcourt Company stock is now 113.21% up from its year-to-date (YTD) trading value. HMHC Stock saw the intraday high of $7.59 and lowest of $6.67 per share. The company’s 52-week high price is 7.20, which means current price is +119.79% above from all time high which was touched on 03/29/21.
Compared to the average trading volume of 1.85M shares, HMHC reached a trading volume of 8433401 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Houghton Mifflin Harcourt Company [HMHC]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HMHC shares is $5.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HMHC stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Citigroup have made an estimate for Houghton Mifflin Harcourt Company shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 05, 2020. While these analysts kept the previous recommendation, BMO Capital Markets dropped their target price from $7 to $3. The new note on the price target was released on April 07, 2020, representing the official price target for Houghton Mifflin Harcourt Company stock. Previously, the target price had yet another drop from $7.50 to $1, while Citigroup kept a Sell rating on HMHC stock.
The Average True Range (ATR) for Houghton Mifflin Harcourt Company is set at 0.54, with the Price to Sales ratio for HMHC stock in the period of the last 12 months amounting to 0.88. The Price to Book ratio for the last quarter was 9.86. Price to Free Cash Flow for HMHC in the course of the last twelve months was 14.06 with Quick ratio for the last quarter at 0.80.
How has HMHC stock performed recently?
Houghton Mifflin Harcourt Company [HMHC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.70. With this latest performance, HMHC shares gained by 16.39% in over the last four-week period, additionally plugging by 327.71% over the last 6 months – not to mention a rise of 238.10% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for HMHC stock in for the last two-week period is set at 60.54, with the RSI for the last a single of trading hit 63.05, and the three-weeks RSI is set at 60.11 for Houghton Mifflin Harcourt Company [HMHC]. The present Moving Average for the last 50 days of trading for this stock 6.02, while it was recorded at 6.12 for the last single week of trading, and 3.46 for the last 200 days.
Houghton Mifflin Harcourt Company [HMHC]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Houghton Mifflin Harcourt Company [HMHC] shares currently have an operating margin of -11.49 and a Gross Margin at +35.07. Houghton Mifflin Harcourt Company’s Net Margin is presently recorded at -46.53.
Return on Total Capital for HMHC is now -10.57, given the latest momentum, and Return on Invested Capital for the company is -43.89. Return on Equity for this stock declined to -146.11, with Return on Assets sitting at -21.16. When it comes to the capital structure of this company, Houghton Mifflin Harcourt Company [HMHC] has a Total Debt to Total Equity ratio set at 868.17. Additionally, HMHC Total Debt to Total Capital is recorded at 89.67, with Total Debt to Total Assets ending up at 38.86. Long-Term Debt to Equity for the company is recorded at 836.48, with the Long-Term Debt to Total Capital now at 86.40.
Reflecting on the efficiency of the workforce at the company, Houghton Mifflin Harcourt Company [HMHC] managed to generate an average of -$184,553 per employee. Receivables Turnover for the company is 6.10 with a Total Asset Turnover recorded at a value of 0.45.Houghton Mifflin Harcourt Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.10.
Earnings analysis for Houghton Mifflin Harcourt Company [HMHC]
With the latest financial reports released by the company, Houghton Mifflin Harcourt Company posted -2.77/share EPS, while the average EPS was predicted by analysts to be reported at -0.79/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -250.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for HMHC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Houghton Mifflin Harcourt Company go to 5.00%.
Insider trade positions for Houghton Mifflin Harcourt Company [HMHC]
There are presently around $782 million, or 88.20% of HMHC stock, in the hands of institutional investors. The top three institutional holders of HMHC stocks are: WELLINGTON MANAGEMENT GROUP LLP with ownership of 16,016,561, which is approximately 7.83% of the company’s market cap and around 0.80% of the total institutional ownership; BURGUNDY ASSET MANAGEMENT LTD., holding 10,632,055 shares of the stock with an approximate value of $75.49 million in HMHC stocks shares; and ALLIANCEBERNSTEIN L.P., currently with $60.91 million in HMHC stock with ownership of nearly 2.165% of the company’s market capitalization.
Positions in Houghton Mifflin Harcourt Company stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 67 institutional holders increased their position in Houghton Mifflin Harcourt Company [NASDAQ:HMHC] by around 32,269,583 shares. Additionally, 51 investors decreased positions by around 32,046,184 shares, while 13 investors held positions by with 45,880,539 shares. The mentioned changes placed institutional holdings at 110,196,306 shares, according to the latest SEC report filing. HMHC stock had 31 new institutional investments in for a total of 11,780,027 shares, while 18 institutional investors sold positions of 21,397,511 shares during the same period.