Steel Partners Holdings L.P. and its affiliated entities have recently made significant purchases of Steel Connect, Inc. (NASDAQ:STCN) stock, as indicated by the latest filings with the Securities and Exchange Commission. In a series of transactions, these entities acquired a total of $390,000 worth of shares, with prices ranging from $8.9314 to $9.4428 per share.
The buying spree included transactions on three consecutive days, starting with a purchase of 18,605 shares at $8.9314 each, followed by 23,698 shares at $9.4428 the next day, and a smaller acquisition of 6 shares at $9.3500 on the final day. These transactions reflect a continued interest and confidence in Steel Connect by Steel Partners and its associated entities.
Steel Partners Holdings L.P., along with 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, are linked by a complex web of ownership and control. Steel Partners Holdings L.P. directly or indirectly holds majority interests in these entities, which in turn hold significant stakes in Steel Connect.
Investors keeping track of insider transactions may find these purchases noteworthy, as they represent a substantial investment by entities closely related to the company's board members. However, the filings indicate that the reporting entities disclaim beneficial ownership of the shares held by each other, despite their intertwined relationships.
The recent acquisitions underscore the intricate connections within the Steel Partners family of companies and their collective actions in the market. For investors, such transactions often signal confidence in the company's prospects, as insiders are typically privy to detailed knowledge about the company's operations and future plans.
InvestingPro Insights
In light of the recent insider transactions at Steel Connect, Inc. (NASDAQ:STCN), where Steel Partners Holdings L.P. and affiliated entities have significantly increased their stake in the company, several metrics and tips from InvestingPro may offer additional insights for investors. The company's management has been actively buying back shares, which can be interpreted as a sign of confidence in the company's value and future performance. Moreover, Steel Connect holds more cash than debt on its balance sheet, indicating a strong financial position that could support future growth or provide a buffer against market volatility.
Key real-time data from InvestingPro includes a market capitalization of $61.26 million and a price-to-earnings (P/E) ratio of 9.59. Notably, the P/E ratio adjusted for the last twelve months as of Q2 2024 stands at 13.73. This lower earnings multiple, along with a significant return over the last week of 10.22%, may suggest that the stock is undervalued relative to its earnings potential, especially considering the company's strong free cash flow yield as implied by its valuation.
InvestingPro Tips also highlight that Steel Connect is trading at a low earnings multiple and has a high shareholder yield. These factors combined with the company's profitability over the last twelve months and the fact that its liquid assets exceed short-term obligations provide a reassuring financial snapshot for current and prospective investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on the company's financial health and market performance. There are currently 6 more InvestingPro Tips available, which can be accessed through the dedicated link for Steel Connect. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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