In a recent transaction, Steel Partners Holdings L.P. has increased its holdings in Steel Connect, Inc. (NASDAQ:STCN), purchasing additional shares of the company. On June 5, 2024, Steel Partners Holdings L.P., a director and a ten percent owner of Steel Connect, acquired 1,323 shares of common stock at a price of $10.4984 per share, totaling approximately $13,889 in transaction value.
This purchase has been made public as per the latest filings with the Securities and Exchange Commission. The transaction indicates a continued interest and confidence from the insider in the company's performance and future prospects. Following this transaction, the total number of shares owned by Steel Partners Holdings L.P. in Steel Connect is 1,079,746 shares, held indirectly through Steel Excel Inc.
Steel Partners Holdings L.P. is part of a group that collectively owns more than 10% of Steel Connect's outstanding common stock. This group, which includes 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, is considered to be a director by deputization due to their relationship with certain directors on the board of Steel Connect.
Investors often monitor insider transactions as they can provide insights into how the company's leadership perceives the financial health and future of the organization. The recent insider buying activity could be seen as a positive signal by market watchers and investors.
The filings did not disclose any sales of common stock by the insiders, focusing solely on the purchase made by Steel Partners Holdings L.P. The filings also include a disclaimer by the reporting entities, stating that they disclaim beneficial ownership of the securities owned directly by the other entities within the group.
InvestingPro Insights
In light of the recent insider buying activity at Steel Connect, Inc. (NASDAQ:STCN), investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Steel Connect has a notably low Price/Earnings (P/E) ratio of 0.85, which may suggest the stock is undervalued relative to its earnings. This is further substantiated by an adjusted P/E ratio for the last twelve months as of Q3 2024, standing at 0.9. Additionally, the company's Price/Book value during the same period is 0.46, reinforcing the potential undervaluation when considering the company's assets.
From a performance standpoint, Steel Connect has shown a strong return over the last three months, with a 25.62% price total return, which aligns with the insider's recent investment decision. This is complemented by a solid 47.88% price total return over the past year, indicating robust growth for investors who held the stock during this period.
InvestingPro Tips also highlight that Steel Connect holds more cash than debt on its balance sheet and possesses liquid assets that exceed short-term obligations, indicating a healthy financial position. Furthermore, the company's valuation implies a strong free cash flow yield, which can be an attractive feature for value-oriented investors. It's worth noting that Steel Connect does not pay a dividend, which may be relevant for those investors seeking income.
For investors looking to delve deeper into Steel Connect's financials and market potential, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for Steel Connect, which can be accessed by visiting https://www.investing.com/pro/STCN. Interested readers can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolkit for informed investment decisions.
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