Steelcase (NYSE:SCS) Sees Unusually-High Trading Volume - Here's Why

Key Points

• Steelcase Inc. experienced a significant trading volume increase of 82% on Tuesday, with about 1.6 million shares traded, although the stock price decreased from $16.58 to $15.98.
• Analysts have downgraded Steelcase from a "strong-buy" rating to a "buy" rating, indicating a more cautious outlook on the company.
• The company recently reported a quarterly earnings per share (EPS) of $0.20, exceeding estimates and showing a 7.1% revenue growth compared to the same quarter last year.

Steelcase Inc. (NYSE:SCS - Get Free Report) shares saw an uptick in trading volume on Tuesday . 1,647,064 shares traded hands during mid-day trading, an increase of 82% from the previous session's volume of 906,991 shares.The stock last traded at $15.98 and had previously closed at $16.58.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on SCS. Noble Financial downgraded Steelcase from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Wall Street Zen downgraded Steelcase from a "buy" rating to a "hold" rating in a research report on Saturday.

Steelcase Trading Down 0.9%

The company has a market capitalization of $1.82 billion, a price-to-earnings ratio of 15.39, a P/E/G ratio of 1.51 and a beta of 1.18. The company has a 50-day moving average price of $11.10 and a 200-day moving average price of $10.98. The company has a quick ratio of 1.15, a current ratio of 1.65 and a debt-to-equity ratio of 0.46.

Steelcase (NYSE:SCS - Get Free Report) last released its earnings results on Wednesday, June 25th. The business services provider reported $0.20 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.08. Steelcase had a return on equity of 14.49% and a net margin of 3.84%. The business had revenue of $779.00 million for the quarter, compared to the consensus estimate of $759.90 million. During the same period last year, the business earned $0.16 earnings per share. The firm's revenue for the quarter was up 7.1% compared to the same quarter last year. Research analysts predict that Steelcase Inc. will post 1 EPS for the current fiscal year.

Steelcase Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, July 21st. Investors of record on Monday, July 7th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Monday, July 7th. This represents a $0.40 dividend on an annualized basis and a yield of 2.5%. Steelcase's dividend payout ratio (DPR) is 38.83%.

Insiders Place Their Bets

In related news, VP Robert G. Krestakos sold 12,000 shares of Steelcase stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $10.63, for a total transaction of $127,560.00. Following the sale, the vice president directly owned 127,912 shares of the company's stock, valued at $1,359,704.56. This trade represents a 8.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 6.75% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Avantax Advisory Services Inc. lifted its stake in Steelcase by 54.6% during the first quarter. Avantax Advisory Services Inc. now owns 102,699 shares of the business services provider's stock worth $1,126,000 after purchasing an additional 36,273 shares during the period. Northern Trust Corp lifted its stake in Steelcase by 6.1% during the fourth quarter. Northern Trust Corp now owns 1,011,144 shares of the business services provider's stock worth $11,952,000 after purchasing an additional 58,079 shares during the period. Millennium Management LLC lifted its stake in Steelcase by 93.6% during the fourth quarter. Millennium Management LLC now owns 694,625 shares of the business services provider's stock worth $8,210,000 after purchasing an additional 335,889 shares during the period. Deutsche Bank AG lifted its stake in Steelcase by 57.0% during the fourth quarter. Deutsche Bank AG now owns 80,787 shares of the business services provider's stock worth $955,000 after purchasing an additional 29,325 shares during the period. Finally, SG Americas Securities LLC lifted its stake in Steelcase by 42.0% during the first quarter. SG Americas Securities LLC now owns 45,528 shares of the business services provider's stock worth $499,000 after purchasing an additional 13,476 shares during the period. Institutional investors own 92.42% of the company's stock.

About Steelcase

Steelcase Inc provides a portfolio of furniture and architectural products and services in the United States and internationally. It operates through Americas and International segments. The company's furniture portfolio includes furniture systems, seating, storage, fixed and height-adjustable desks, benches, and tables, as well as complementary products, such as work accessories, lighting, mobile power, and screens.