Stock Traders Purchase High Volume of Call Options on Steelcase (SCS)

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Steelcase Inc. (NYSE:SCS) saw some unusual options trading activity on Thursday. Investors acquired 970 call options on the stock. This represents an increase of 1,517% compared to the typical volume of 60 call options.

Shares of NYSE:SCS traded down $0.21 on Friday, hitting $16.44. 1,500,385 shares of the company were exchanged, compared to its average volume of 632,960. Steelcase has a 1-year low of $13.10 and a 1-year high of $19.35. The company has a current ratio of 1.34, a quick ratio of 0.94 and a debt-to-equity ratio of 0.35. The company has a market capitalization of $2.16 billion, a P/E ratio of 18.07 and a beta of 1.23.

Steelcase (NYSE:SCS) last posted its quarterly earnings data on Friday, September 21st. The business services provider reported $0.41 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.29 by $0.12. Steelcase had a net margin of 2.89% and a return on equity of 13.97%. The business had revenue of $875.80 million during the quarter, compared to the consensus estimate of $873.70 million. During the same period in the previous year, the firm posted $0.26 earnings per share. The business’s revenue for the quarter was up 12.9% compared to the same quarter last year. Equities analysts forecast that Steelcase will post 1.08 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Investors of record on Monday, October 1st will be issued a dividend of $0.135 per share. The ex-dividend date of this dividend is Friday, September 28th. This represents a $0.54 annualized dividend and a dividend yield of 3.28%. Steelcase’s dividend payout ratio (DPR) is presently 59.34%.

Several brokerages have weighed in on SCS. Raymond James raised their target price on shares of Steelcase from $16.50 to $20.00 and gave the company an “outperform” rating in a research note on Monday, September 24th. ValuEngine upgraded shares of Steelcase from a “hold” rating to a “buy” rating in a research note on Saturday, September 22nd. TheStreet upgraded shares of Steelcase from a “c+” rating to a “b” rating in a research note on Friday, September 21st. Zacks Investment Research upgraded shares of Steelcase from a “hold” rating to a “buy” rating and set a $21.00 price objective for the company in a research note on Wednesday, September 26th. Finally, Seaport Global Securities upgraded shares of Steelcase from a “neutral” rating to a “buy” rating and set a $20.00 price objective for the company in a research note on Friday. One research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $20.33.

In other Steelcase news, CAO Lizbeth S. O’shaughnessy sold 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 27th. The shares were sold at an average price of $18.61, for a total value of $372,200.00. Following the completion of the sale, the chief accounting officer now directly owns 218,091 shares in the company, valued at $4,058,673.51. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Allan W. Smith, Jr. sold 14,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 25th. The shares were sold at an average price of $18.54, for a total transaction of $259,560.00. Following the completion of the sale, the vice president now owns 31,490 shares of the company’s stock, valued at $583,824.60. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 57,791 shares of company stock valued at $1,056,215. 17.58% of the stock is owned by insiders.

Several institutional investors have recently modified their holdings of SCS. Russell Investments Group Ltd. raised its holdings in shares of Steelcase by 111.3% during the first quarter. Russell Investments Group Ltd. now owns 1,150,738 shares of the business services provider’s stock worth $15,650,000 after purchasing an additional 606,117 shares during the last quarter. Deprince Race & Zollo Inc. raised its holdings in shares of Steelcase by 22.6% during the second quarter. Deprince Race & Zollo Inc. now owns 2,925,293 shares of the business services provider’s stock worth $39,491,000 after purchasing an additional 539,088 shares during the last quarter. BlackRock Inc. raised its holdings in shares of Steelcase by 8.5% during the second quarter. BlackRock Inc. now owns 5,802,959 shares of the business services provider’s stock worth $78,341,000 after purchasing an additional 456,137 shares during the last quarter. Pzena Investment Management LLC raised its holdings in shares of Steelcase by 14.0% during the second quarter. Pzena Investment Management LLC now owns 3,393,731 shares of the business services provider’s stock worth $45,815,000 after purchasing an additional 416,815 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of Steelcase by 10.1% during the second quarter. Dimensional Fund Advisors LP now owns 4,199,765 shares of the business services provider’s stock worth $56,697,000 after purchasing an additional 386,228 shares during the last quarter. 63.70% of the stock is owned by hedge funds and other institutional investors.

Steelcase Company Profile

Steelcase Inc manufactures and sells integrated furniture settings, user-centered technologies, and interior architectural products. It operates through Americas, EMEA, and Other Category segments. The company's furniture portfolio includes panel-based furniture systems, storage products, fixed and height-adjustable desks, benches, and tables, as well as other products, including worktools.

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