Steel Partners Holdings L.P., a major shareholder in Steel Connect, Inc. (NASDAQ:STCN), has recently made a notable purchase of the company's stock. On June 13, 2024, Steel Partners Holdings, through its ownership in Steel Excel Inc., acquired 4,800 shares of Steel Connect's common stock at a price of $11.9333 per share, amounting to a total investment of over $57,279.
This transaction reflects a confidence by the insider in the prospects of Steel Connect, a company operating in the business services sector. The purchase was made directly by Steel Excel Inc., which is part of a group of related companies including SPH Group LLC, SPH Group Holdings LLC, and Steel Partners Holdings GP Inc., among others. Together, these entities form a group that collectively owns a significant portion of Steel Connect's common stock.
The filing also indicates that while these entities may be deemed to be directors by deputization due to their relationship with certain directors on the board of Steel Connect, they disclaim beneficial ownership of the securities owned directly by the individual entities within the group.
Investors often monitor insider transactions as they can provide insights into the sentiment of those with intimate knowledge of the company. In this case, the purchase by Steel Partners Holdings L.P. and its related entities may suggest a positive outlook on Steel Connect's future performance.
The acquisition of shares by Steel Partners Holdings L.P. is part of a series of ownership documents filed on June 17, 2024, which detail the ownership and transactions of the company's insiders. While this transaction represents a direct purchase of shares, the overall ownership of Steel Connect by the group of related companies remains substantial, as noted in the footnotes of the SEC filing.
Steel Connect has a diverse range of business services and has been working to expand its offerings and market presence. This insider buying activity could be a signal to investors that the company's growth strategies are aligning with the expectations of its major shareholders.
InvestingPro Insights
In light of the recent insider purchase by Steel Partners Holdings L.P., current and prospective investors in Steel Connect, Inc. (NASDAQ:STCN) may find additional insights from InvestingPro valuable for a deeper understanding of the company's financial health and market performance. According to InvestingPro, Steel Connect holds a market capitalization of $75.95 million and presents an attractive Price to Earnings (P/E) Ratio of 3.59, which is lower than the industry average, indicating that the stock may be undervalued relative to its earnings.
Another key metric that stands out is the company's Price to Book (P/B) ratio of 0.51 for the last twelve months as of Q3 2024, suggesting that the market is pricing the company's assets at less than their net value, which could be a sign of a potential investment opportunity. Additionally, Steel Connect has demonstrated a strong return on assets of 28.16% during the same period, highlighting efficient management and a profitable use of its assets.
InvestingPro Tips also reveal that Steel Connect has been trading at a low earnings multiple and has achieved a high return over the last year, with a 58.88% price total return. These factors, combined with the insider purchase, may indicate a bullish outlook for the company's stock. For investors seeking more comprehensive analysis, InvestingPro offers an array of tips, including the fact that Steel Connect holds more cash than debt on its balance sheet and has high shareholder yield. There are 11 additional InvestingPro Tips available for Steel Connect, which can be accessed through the dedicated page: https://www.investing.com/pro/STCN.
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