Zacks Investment Research Upgrades Steelcase (SCS) to Hold

Zacks Investment Research upgraded shares of Steelcase (NYSE:SCS) from a sell rating to a hold rating in a research note published on Thursday, Zacks.com reports.

According to Zacks, “Steelcase Inc. is a designer and manufacturer of products used to create high-performance work environments. Its product portfolio includes furniture systems, seating, storage, desks, casegoods, interior architectural products, technology products and related products and services. The company reports two geographic furniture segments: North America and International. “

Separately, Raymond James raised Steelcase from an outperform rating to a strong-buy rating and raised their target price for the stock from $20.00 to $21.00 in a research note on Thursday, March 21st. Two equities research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. The stock currently has an average rating of Buy and an average target price of $19.00.

Shares of SCS stock opened at $16.92 on Thursday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.22 and a current ratio of 1.59. The firm has a market capitalization of $1.98 billion, a price-to-earnings ratio of 14.10 and a beta of 1.26. Steelcase has a fifty-two week low of $13.10 and a fifty-two week high of $19.35.

Steelcase (NYSE:SCS) last issued its earnings results on Tuesday, March 19th. The business services provider reported $0.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.03. Steelcase had a return on equity of 16.47% and a net margin of 3.66%. The business had revenue of $912.00 million during the quarter, compared to the consensus estimate of $870.60 million. During the same period last year, the company earned $0.24 EPS. The company’s revenue for the quarter was up 18.0% on a year-over-year basis. Sell-side analysts expect that Steelcase will post 1.3 EPS for the current year.

The business also recently announced a quarterly dividend, which was paid on Friday, April 12th. Shareholders of record on Friday, March 29th were paid a $0.145 dividend. The ex-dividend date of this dividend was Thursday, March 28th. This is an increase from Steelcase’s previous quarterly dividend of $0.14. This represents a $0.58 dividend on an annualized basis and a dividend yield of 3.43%. Steelcase’s dividend payout ratio (DPR) is 48.33%.

In other Steelcase news, Director Robert C. Pew III sold 40,230 shares of the firm’s stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $17.52, for a total value of $704,829.60. Following the completion of the sale, the director now directly owns 217,890 shares of the company’s stock, valued at approximately $3,817,432.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Sara E. Armbruster sold 7,500 shares of the firm’s stock in a transaction on Tuesday, March 26th. The stock was sold at an average price of $15.00, for a total value of $112,500.00. Following the completion of the sale, the vice president now directly owns 48,038 shares of the company’s stock, valued at $720,570. The disclosure for this sale can be found here. Insiders sold a total of 117,696 shares of company stock valued at $2,037,949 over the last ninety days. Corporate insiders own 17.58% of the company’s stock.

Large investors have recently modified their holdings of the stock. Stone Ridge Asset Management LLC increased its position in shares of Steelcase by 31.0% during the 4th quarter. Stone Ridge Asset Management LLC now owns 84,877 shares of the business services provider’s stock worth $1,259,000 after purchasing an additional 20,092 shares during the last quarter. Meeder Asset Management Inc. increased its position in shares of Steelcase by 421.8% during the 4th quarter. Meeder Asset Management Inc. now owns 15,315 shares of the business services provider’s stock worth $228,000 after purchasing an additional 12,380 shares during the last quarter. James Investment Research Inc. acquired a new stake in shares of Steelcase during the 4th quarter worth about $1,057,000. Marshall Wace LLP acquired a new stake in shares of Steelcase during the 3rd quarter worth about $1,846,000. Finally, Hsbc Holdings PLC increased its position in shares of Steelcase by 918.1% during the 4th quarter. Hsbc Holdings PLC now owns 295,271 shares of the business services provider’s stock worth $4,379,000 after purchasing an additional 266,270 shares during the last quarter. 69.21% of the stock is owned by hedge funds and other institutional investors.

About Steelcase

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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