Scholastic Shares Pop Over 11% Premarket As It Approves $75M Buyback

Scholastic Corp's SCHL board approved the repurchase of up to $75 million of its common stock through a modified "Dutch Auction" tender offer at an anticipated cash purchase price per share of $35.00 - $40.00 per share.
Scholastic will commence the offer on October 25, 2022, with an expiration on November 22, 2022.
"This decision to purchase approximately 6% of our outstanding shares of common stock represents both a major investment in our own stock at what we believe are very attractive prices and a first step as we review Scholastic's capital allocation framework in light of our improved margin profile and long-term free cash flow outlook," CEO Peter Warwick said.
Scholastic will fund the buyback entirely through the company's cash on hand. It held $239.7 million in cash and equivalents as of August 31.
Price Action: SCHL shares traded higher by 11.54% at $37.51 in the premarket on the last check Monday.