Zacks Investment Research Downgrades Steelcase (NYSE:SCS) to Sell

Steelcase (NYSE:SCS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday, 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, Seaport Global Securities downgraded Steelcase from a “buy” rating to a “neutral” rating in a report on Wednesday, July 17th. One analyst has rated the stock with a sell rating, two have given a hold rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average target price of $19.00.

SCS stock opened at $15.65 on Wednesday. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.13 and a current ratio of 1.57. The stock’s fifty day moving average is $16.79. Steelcase has a one year low of $13.55 and a one year high of $19.35. The company has a market capitalization of $1.90 billion, a PE ratio of 13.04 and a beta of 1.33.

Steelcase (NYSE:SCS) last released its quarterly earnings data on Wednesday, June 19th. The business services provider reported $0.15 EPS for the quarter, missing the Zacks’ consensus estimate of $0.19 by ($0.04). Steelcase had a return on equity of 16.35% and a net margin of 3.61%. The company had revenue of $824.30 million for the quarter, compared to the consensus estimate of $839.07 million. During the same period last year, the firm earned $0.14 earnings per share. The company’s revenue for the quarter was up 9.3% compared to the same quarter last year. Research analysts expect that Steelcase will post 1.28 EPS for the current fiscal year.

In other Steelcase news, CEO James P. Keane sold 100,000 shares of Steelcase stock in a transaction dated Friday, July 12th. The stock was sold at an average price of $17.45, for a total value of $1,745,000.00. Following the transaction, the chief executive officer now owns 808,927 shares in the company, valued at $14,115,776.15. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO David C. Sylvester sold 21,017 shares of Steelcase stock in a transaction dated Friday, July 12th. The shares were sold at an average price of $17.43, for a total value of $366,326.31. Following the completion of the transaction, the chief financial officer now owns 412,816 shares in the company, valued at approximately $7,195,382.88. The disclosure for this sale can be found here. In the last ninety days, insiders sold 147,037 shares of company stock valued at $2,557,519. 17.04% of the stock is owned by insiders.

A number of institutional investors have recently added to or reduced their stakes in SCS. Earnest Partners LLC grew its position in Steelcase by 69.5% in the second quarter. Earnest Partners LLC now owns 5,543,166 shares of the business services provider’s stock valued at $94,788,000 after acquiring an additional 2,273,553 shares during the last quarter. Norges Bank bought a new position in Steelcase in the fourth quarter valued at about $29,625,000. BlackRock Inc. grew its position in Steelcase by 12.7% in the second quarter. BlackRock Inc. now owns 6,975,317 shares of the business services provider’s stock valued at $119,278,000 after acquiring an additional 788,468 shares during the last quarter. Wells Fargo & Company MN grew its position in Steelcase by 32.7% in the second quarter. Wells Fargo & Company MN now owns 2,435,585 shares of the business services provider’s stock valued at $41,648,000 after acquiring an additional 600,417 shares during the last quarter. Finally, Frontier Capital Management Co. LLC grew its position in Steelcase by 44.7% in the first quarter. Frontier Capital Management Co. LLC now owns 1,284,415 shares of the business services provider’s stock valued at $18,688,000 after acquiring an additional 396,486 shares during the last quarter. Hedge funds and other institutional investors own 66.61% of the company’s stock.

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, fence and beam-based furniture systems, storage products, fixed and height-adjustable desks, benches, and tables, as well as complementary products, including worktools.

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