Houghton Mifflin Harcourt (NASDAQ:HMHC) Cut to “Sell” at ValuEngine

Houghton Mifflin Harcourt (NASDAQ:HMHC) was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating in a research report issued on Wednesday, ValuEngine reports.

Several other equities research analysts also recently commented on HMHC. Citigroup reduced their price objective on Houghton Mifflin Harcourt from $10.00 to $8.00 and set a “buy” rating for the company in a report on Tuesday, July 16th. BidaskClub cut shares of Houghton Mifflin Harcourt from a “buy” rating to a “hold” rating in a research note on Thursday, September 5th. Morgan Stanley dropped their price target on shares of Houghton Mifflin Harcourt from $7.00 to $6.50 and set an “equal weight” rating on the stock in a report on Thursday, September 5th. Finally, Zacks Investment Research lowered shares of Houghton Mifflin Harcourt from a “hold” rating to a “sell” rating in a research note on Friday, September 6th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus target price of $8.50.

HMHC traded up $0.41 during trading on Wednesday, hitting $6.32. 594,721 shares of the company’s stock traded hands, compared to its average volume of 693,219. The stock has a market capitalization of $729.74 million, a price-to-earnings ratio of -5.96 and a beta of 0.87. The company’s 50 day simple moving average is $5.69 and its two-hundred day simple moving average is $6.44. Houghton Mifflin Harcourt has a 12-month low of $4.72 and a 12-month high of $10.64. The company has a current ratio of 1.26, a quick ratio of 0.80 and a debt-to-equity ratio of 1.46.

Houghton Mifflin Harcourt (NASDAQ:HMHC) last posted its quarterly earnings results on Thursday, August 8th. The business services provider reported $0.01 earnings per share for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.01. The firm had revenue of $388.90 million during the quarter, compared to analysts’ expectations of $399.91 million. Houghton Mifflin Harcourt had a negative return on equity of 16.39% and a negative net margin of 9.46%. The company’s revenue was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.19) earnings per share. On average, equities analysts expect that Houghton Mifflin Harcourt will post -1.3 EPS for the current year.

A number of institutional investors and hedge funds have recently made changes to their positions in HMHC. BlackRock Inc. boosted its stake in shares of Houghton Mifflin Harcourt by 0.8% in the 2nd quarter. BlackRock Inc. now owns 7,014,854 shares of the business services provider’s stock worth $40,405,000 after buying an additional 54,797 shares during the last quarter. Invesco Ltd. increased its position in Houghton Mifflin Harcourt by 974.2% during the second quarter. Invesco Ltd. now owns 3,160,302 shares of the business services provider’s stock valued at $18,204,000 after acquiring an additional 2,866,103 shares during the last quarter. Wells Fargo & Company MN lifted its holdings in Houghton Mifflin Harcourt by 13.6% in the second quarter. Wells Fargo & Company MN now owns 3,111,879 shares of the business services provider’s stock valued at $17,925,000 after acquiring an additional 373,189 shares during the period. OppenheimerFunds Inc. lifted its holdings in Houghton Mifflin Harcourt by 34.3% in the first quarter. OppenheimerFunds Inc. now owns 2,894,872 shares of the business services provider’s stock valued at $21,046,000 after acquiring an additional 739,343 shares during the period. Finally, Thompson Siegel & Walmsley LLC boosted its position in Houghton Mifflin Harcourt by 14.5% in the first quarter. Thompson Siegel & Walmsley LLC now owns 1,774,036 shares of the business services provider’s stock worth $12,897,000 after purchasing an additional 225,114 shares during the last quarter. Institutional investors and hedge funds own 97.88% of the company’s stock.

About Houghton Mifflin Harcourt

Houghton Mifflin Harcourt Company, a learning company, provides curriculum, supplemental, and intervention solutions; and professional learning services worldwide. The company operates in two segments, Education and Trade Publishing. The Education segment provides educational products, technology platforms, and services, including print and digital content in the form of textbooks, digital courseware, instructional aids, educational assessment, and intervention solutions for students.

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