Steel Partners Holdings L.P. (SPH), a major shareholder of Steel Connect, Inc. (NASDAQ:STCN), has recently increased its stake in the company through a series of purchases. On June 10 and June 12, 2024, Steel Partners Holdings L.P. acquired additional shares of Steel Connect, with the total transaction value amounting to approximately $245,892.
The shares were bought at prices ranging from $11.2568 to $11.6630 per share. Specifically, on June 10, a total of 7,434 shares were purchased at $11.2568 each, and on June 12, another 13,908 shares were bought at $11.6630 per share. These transactions have raised the holdings of Steel Partners Holdings L.P. in Steel Connect to a significant amount, reflecting a vote of confidence in the company's prospects.
Steel Partners Holdings L.P. is known to have substantial influence over Steel Connect, with connections to other entities such as SPH Group LLC, SPH Group Holdings LLC, Steel Partners Holdings GP Inc., Steel Excel Inc., WF Asset Corp., Handy & Harman Ltd., and WHX CS LLC. These entities, due to their interlinked ownership structures, may be deemed to beneficially own the shares held by each other.
The recent acquisitions by Steel Partners Holdings L.P. are noteworthy as they represent direct purchases of Steel Connect's common stock, further solidifying SPH's position as a major shareholder. The company's SEC filings indicate that these transactions do not include other securities of the issuer that may be beneficially owned by the members of the Section 13(d) Group, which have been disclosed in previously filed Forms 4.
Investors often monitor insider buying as it can be a signal of the management's belief in the company's future performance. The additional shares acquired by Steel Partners Holdings L.P. suggest a strong conviction in the value and future of Steel Connect, Inc.
InvestingPro Insights
Steel Connect, Inc. (NASDAQ:STCN) has been under the spotlight with Steel Partners Holdings L.P. increasing its stake, demonstrating a robust confidence in the company's future. To provide further insights into Steel Connect's financial health and potential, let's delve into some key metrics and InvestingPro Tips.
InvestingPro Data reveals a market capitalization of $73.32M, suggesting a relatively small-cap company that could offer growth potential. The company is trading at a low Price / Book multiple of 0.49 as of the last twelve months ending Q3 2024, which could indicate that the stock is potentially undervalued compared to its assets. Moreover, Steel Connect has a strikingly low P/E Ratio of 3.5, and even when adjusted for the last twelve months as of Q3 2024, it remains low at 3.71.
In terms of performance, Steel Connect has shown a significant return over the last week, with a 14.77% price total return, and an even more impressive 35.87% over the last three months. This trend may appeal to investors looking for companies with a strong short-term performance trajectory.
InvestingPro Tips further highlight the company's financial prudence, as Steel Connect holds more cash than debt on its balance sheet, which can be an indicator of financial stability and flexibility. Additionally, the company has been profitable over the last twelve months, which is a reassuring sign for potential investors.
For those interested in deeper analysis and additional metrics, InvestingPro offers more tips, including insights on shareholder yield, free cash flow yield, and earnings multiples. Subscribers can gain access to a total of 11 InvestingPro Tips for Steel Connect, which could help inform investment decisions. To explore these tips and make the most of the insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Steel Connect's financial metrics and the recent insider buying activity by Steel Partners Holdings L.P. could be interpreted as promising signals for the company's future, making it a potentially interesting investment consideration.
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