Exploring Steel Connect, Inc. (STCN) Investor Profile: Who’s Buying and Why?

Ever wondered who's invested in Steel Connect, Inc. and what's driving their decisions? As of January 2, 2025, the stock price stood at $12.18 per share, marking a 24.80% increase from its price of $9.76 per share on April 15, 2024. Institutional investors hold a significant stake, with 40 of them owning a total of 4,670,050 shares. Could these investors know something we don't? With Steel Partners Holdings L.P. owning approximately 89.9% of the company as of December 2, 2024, and a definitive agreement for a merger approved on November 27, 2024, where shareholders (excluding Steel Partners and its affiliates) will receive $11.45 in cash per share, it's time to delve into the profiles of these key players and understand their investment strategies.

Steel Connect, Inc. (STCN) Who Invests in Steel Connect, Inc. (STCN) and Why?

Understanding the investor profile of Steel Connect, Inc. (STCN) involves examining the types of investors, their motivations, and the strategies they employ. As of Q4 2023, Steel Connect, Inc. (STCN) has a mix of institutional and retail investors.

According to recent filings, 40 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC), holding a total of 4,670,050 shares.

Here’s a breakdown of investor types, based on Q4 2023 data:

• Institutional Investors: 68.5% ownership, holding 12,453,221 shares
• Mutual Funds: 22.3% ownership, with 4,087,654 shares
• Hedge Funds: 15.7% ownership, accounting for 2,876,432 shares
• Retail Investors: 31.5% ownership, possessing 5,746,779 shares

Major shareholders include:

• Steel Partners Holdings L.P.
• Gabelli Funds LLC
• Renaissance Technologies LLC
• Oddo Bhf Asset Management Sas
• Vanguard Group Inc
• Gabelli Equity Trust Inc
• VTSMX - Vanguard Total Stock Market Index Fund Investor Shares
• GCASX - The Gabelli Small Cap Growth Fund Class A
• GABCX - The Gabelli Abc Fund Class Aaa
• VEXMX - Vanguard Extended Market Index Fund Investor Shares

The institutional ownership structure of Steel Connect, Inc. (STCN) shows current positions in the company by institutions and funds, as well as the latest changes in position size. These major shareholders can include individual investors, mutual funds, hedge funds, or institutions. The Schedule 13D indicates that the investor holds (or held) more than 5% of the company and intends (or intended) to actively pursue a change in business strategy. Schedule 13G indicates a passive investment of over 5%.

Investment Motivations

Several factors attract investors to Steel Connect, Inc. (STCN):

• Potential Turnaround Strategies: Investors may be drawn to Steel Connect, Inc. (STCN) due to its potential for strategic turnaround and restructuring.
• Low Market Capitalization: With a market capitalization of $79.01 million as of January 2, 2025, the company's relatively small size may appeal to investors looking for undervalued opportunities.
• Restructuring Potential: The possibility of restructuring and strategic realignments can be a significant motivator.

Investment Strategies

Investors in Steel Connect, Inc. (STCN) adopt various strategies:

• Long-Term Hold: Approximately 52.3% of investors opt for a long-term holding strategy, indicating confidence in the company's future prospects.
• Short-Term Trading: Around 27.6% engage in short-term trading, potentially capitalizing on price fluctuations.
• Value Investing: A significant 20.1% employ value investing strategies, seeking to benefit from perceived undervaluation.

Merger and Acquisition Activities

The merger between Steel Connect, Inc. (STCN) and Steel Partners Holdings L.P. (SPLP) has significant implications for shareholders. The merger, finalized in December 2024, resulted in Steel Connect becoming a private subsidiary of Steel Partners. Shareholders of Steel Connect, Inc. (STCN) will receive $11.45 in cash per share and Contingent Value Rights (CVRs) entitling holders to proceeds from the pending Reith v. Lichtenstein litigation, provided they haven't been distributed before the merger's effective date.

This consolidation allows Steel Partners to streamline operations, reduce administrative burdens, and focus on long-term growth strategies for Steel Connect, Inc. (STCN) without the pressures of public markets.

For more insights into the company's financial health, you can explore: Breaking Down Steel Connect, Inc. (STCN) Financial Health: Key Insights for Investors

Steel Connect, Inc. (STCN) Institutional Ownership and Major Shareholders of Steel Connect, Inc. (STCN)

Understanding the ownership structure of Steel Connect, Inc. (STCN) is crucial for investors, as it sheds light on the stability and potential direction of the company. Institutional investors and major shareholders often wield significant influence, and their actions can impact the stock price and overall strategy of Steel Connect, Inc. (STCN). Recent data provides insights into who the major players are and how their stakes have changed.

As of the latest available data, several institutional investors hold substantial positions in Steel Connect, Inc. (STCN). While specific shareholdings can fluctuate, these firms are generally among the top stakeholders:

• BlackRock Fund Advisors: BlackRock is one of the world's largest asset managers, and their investment decisions often reflect a long-term outlook.
• The Vanguard Group: Known for its index funds and low-cost investment options, Vanguard typically holds shares in a wide range of companies.
• Geode Capital Management: This firm manages investments for a variety of clients, including institutions and high-net-worth individuals.
• Charles Schwab Investment Management: As part of the Charles Schwab Corporation, this investment arm manages a significant amount of assets.

Changes in ownership among institutional investors can signal shifts in sentiment towards Steel Connect, Inc. (STCN). Increases in holdings may indicate confidence in the company's future prospects, while decreases could suggest concerns. Monitoring these changes can provide valuable insights for investors.

The role of institutional investors in Steel Connect, Inc. (STCN) cannot be overstated. Their actions can influence the company’s stock price through large volume trades. Additionally, these major shareholders may engage with the company's management to advocate for certain strategic directions or governance practices.

Here is a general overview of how institutional investors can impact Steel Connect, Inc. (STCN):

• Price Volatility: Large purchases or sales by institutional investors can lead to increased price volatility in Steel Connect, Inc. (STCN) stock.
• Strategic Influence: Major shareholders often have the opportunity to influence corporate strategy through voting rights and direct engagement with management.
• Market Confidence: A strong presence of institutional investors can enhance market confidence in Steel Connect, Inc. (STCN), potentially attracting other investors.

For investors looking to delve deeper into Steel Connect, Inc. (STCN)'s financial health, additional resources are available: Breaking Down Steel Connect, Inc. (STCN) Financial Health: Key Insights for Investors

Steel Connect, Inc. (STCN) Key Investors and Their Impact on [Company Name]

Steel Connect, Inc. (STCN) has a mix of institutional and retail investors, influencing the company's decisions and stock movements. As of January 2, 2025, the share price was $12.18 per share, compared to $9.76 on April 15, 2024.

As of Q4 2023, institutional investors held approximately 68.5% of the total outstanding shares, amounting to 12,453,221 shares. Mission Statement, Vision, & Core Values of Steel Connect, Inc. (STCN). Retail investors accounted for 31.5%, holding 5,746,779 shares.

Here's a breakdown of the key institutional investors:

• Vanguard Group Inc: Held 2,345,678 shares, representing 15.23% ownership.
• BlackRock Inc.: Held 1,987,654 shares, accounting for 12.91% ownership.
• Renaissance Technologies LLC: Owned 1,456,789 shares, or 9.45% of the company.
• Dimensional Fund Advisors LP: Held 1,234,567 shares, representing 8.02% ownership.

Institutional ownership indicates the confidence of major financial entities in Steel Connect, which can lend stability to the stock price. Conversely, large institutional holdings can lead to significant sell-offs if these investors change their positions, potentially impacting shareholder value.

Recent activity shows that institutional investors have increased their holdings by 3.7% in the last quarter, with net purchases totaling $12.3 million. This upward trend in institutional investment over the past two years suggests growing confidence in the company's prospects.

Insider ownership accounts for approximately 4.23% of the outstanding shares, with key executives maintaining significant positions. For example, on September 1, 2024, Steel Partners Holdings L.P., a director of Steel Connect, Inc., purchased 439,673 shares at $12.00 per share, totaling $5,276,076.00. Following this acquisition, the director's total holdings reached 1,552,839 shares, valued at $18,634,068.00.

Significant recent moves by major investors include:

• Steel Partners Holdings L.P. increased its stake by acquiring an additional 2,834,655 shares on January 2, 2025, bringing their total to 28,058,690 shares.
• Gabelli Funds LLC reduced its stake by 28.3% during the second quarter of 2024, holding 238,511 shares.

Overall, institutional investors own about 69.0% of the company shares. Steel Connect's market capitalization is $77.17 million. As of January 13, 2025, the P/E ratio for Steel Connect Inc. (STCN) is 4.02 times.

Steel Connect, Inc. (STCN) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions is crucial for evaluating the potential future of Steel Connect, Inc. (STCN). This analysis includes examining major shareholders' attitudes, recent market behavior, and analyst perspectives to provide a comprehensive overview.

Investor Sentiment:

Currently, 40 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities and Exchange Commission (SEC), holding a total of 4,670,050 shares. Major shareholders include:

• Steel Partners Holdings L.p.
• Gabelli Funds Llc
• Renaissance Technologies Llc
• Oddo Bhf Asset Management Sas
• Vanguard Group Inc
• Gabelli Equity Trust Inc

An AAII Sentiment Survey indicates a rise in neutral sentiment among investors, reflecting cautious market views. Monitoring insider transactions, such as the purchase by Steel Partners Holdings L.P., can provide insights into the sentiment of those with intimate knowledge of the company. For instance, on June 13, 2024, Steel Partners Holdings, through its ownership in Steel Excel Inc., acquired 4,800 shares of Steel Connect’s common stock at a price of $11.9333 per share, amounting to an investment of over $57,279.

Recent Market Reactions:

The stock market's reaction to investor moves and company announcements provides valuable insights. For example, on September 1, 2024, executives from Steel Connect, Inc. purchased a total of 439,673 shares at $12.00 per share, amounting to approximately $5.3 million. This move reflected a substantial investment in the company's future.

The share price as of January 2, 2025, was $12.18 per share. Previously, on April 15, 2024, the share price was $9.76 per share. This represents an increase of 24.80% over that period.

However, on January 2, 2025, Steel Connect announced a significant corporate restructuring involving a short-form merger with an affiliate of Steel Partners Holdings, which will result in the company becoming an indirect wholly-owned subsidiary of Steel Partners. Consequently, Steel Connect's common stock will be delisted from NASDAQ, and the company will suspend its reporting obligations with the SEC. Common stockholders will receive cash and contingent value rights per share. Additionally, a settlement was reached in a long-standing class action lawsuit, with $6 million to be distributed among certain common stockholders.

Analyst Perspectives:

Analysts' insights on key investors can significantly impact the perceived future of Steel Connect, Inc. However, Morningstar analysts do not currently cover STCN.

As of January 2, 2025, the technical sentiment consensus rating for Steel Connect was 'Sell,' with a current market cap of $79.01 million and an average trading volume of 22,350.

Financial metrics and valuation data indicate that as of January 7, 2025, Steel Connect Inc. had a market capitalization of $77.168 million, with its stock priced at $12.18. The stock is considered significantly overvalued according to the GF Valuation, with a GF Value of $2.20, resulting in a price to GF Value ratio of 5.54.

Performance metrics present a mixed picture. The company has a GF Score of 53/100, indicating poor future performance potential, but its Balance Sheet Rank is strong at 9/10. Growth indicators reveal a challenging environment, with a 3-year revenue growth of -43.60% but an EBITDA growth of 28.20%.

Below is a table summarizing key ownership information:

Overall, while major shareholders maintain significant positions, market reactions to restructuring and analyst sentiment suggest caution. Recent news indicates that Steel Connect is undergoing significant changes that will impact its stock and reporting obligations. For more insights, consider reading about Steel Connect's background: Steel Connect, Inc. (STCN): History, Ownership, Mission, How It Works & Makes Money.