Steelcase (NYSE:SCS) Sees Large Volume Increase - Should You Buy?

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) saw unusually-high trading volume on Tuesday . Approximately 1,647,064 shares were traded 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.

Analysts Set New Price Targets

Separately, Wall Street Zen cut Steelcase from a "strong-buy" rating to a "buy" rating in a report on Friday, June 27th.

Steelcase Stock Down 3.2%

The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.15 and a current ratio of 1.65. The company has a market capitalization of $1.84 billion, a price-to-earnings ratio of 15.68, a PEG ratio of 0.97 and a beta of 1.18. The business's 50 day moving average is $10.66 and its 200 day moving average is $10.85.

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

Steelcase Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 21st. Stockholders of record on Monday, July 7th were issued a $0.10 dividend. The ex-dividend date was Monday, July 7th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 2.5%. Steelcase's dividend payout ratio is presently 38.83%.

Insider Activity

In other news, VP Robert G. Krestakos sold 12,000 shares of the business's stock in a transaction that occurred on Friday, July 11th. The stock was sold at an average price of $10.63, for a total value of $127,560.00. Following the transaction, the vice president owned 127,912 shares of the company's stock, valued at approximately $1,359,704.56. The trade was a 8.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 6.75% of the company's stock.

Institutional Trading of Steelcase

Several hedge funds and other institutional investors have recently bought and sold shares of SCS. LPL Financial LLC acquired a new position in shares of Steelcase in the fourth quarter worth about $191,000. JPMorgan Chase & Co. increased its position in shares of Steelcase by 59.6% in the fourth quarter. JPMorgan Chase & Co. now owns 474,829 shares of the business services provider's stock worth $5,612,000 after acquiring an additional 177,315 shares in the last quarter. Norges Bank acquired a new stake in shares of Steelcase during the fourth quarter worth approximately $3,279,000. Alliancebernstein L.P. grew its position in Steelcase by 6.4% in the fourth quarter. Alliancebernstein L.P. now owns 392,722 shares of the business services provider's stock worth $4,642,000 after acquiring an additional 23,640 shares in the last quarter. Finally, Franklin Resources Inc. boosted its holdings in shares of Steelcase by 14.9% during the 4th quarter. Franklin Resources Inc. now owns 114,443 shares of the business services provider's stock worth $1,353,000 after buying an additional 14,869 shares during the period. 92.42% of the stock is owned by hedge funds and other institutional investors.

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.

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