JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Steel Dynamics (NASDAQ:STLD) Stock

Key Points

• JPMorgan raised Steel Dynamics’ price target from $260 to $273, implying 13.25% potential upside, but maintained a neutral rating.
• Analyst sentiment is broadly positive, with eight Buy ratings and four Holds; the average rating is “Moderate Buy” and the average price target is $258.45.
• Steel Dynamics recently exceeded quarterly earnings and revenue expectations, reporting $3.69 in EPS and $6.09 billion in revenue, with sales up 33.4% year over year.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its target price hoisted by equities research analysts at JPMorgan Chase & Co. from $260.00 to $273.00 in a report issued on Wednesday, Benzinga reports. The brokerage currently has a "neutral" rating on the basic materials company's stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 13.25% from the company's current price.

Several other research firms have also issued reports on STLD. Bank of America cut their price target on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a research report on Thursday, July 9th. Weiss Ratings raised Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, June 18th. KeyCorp restated an "overweight" rating on shares of Steel Dynamics in a report on Wednesday, July 22nd. The Goldman Sachs Group assumed coverage on Steel Dynamics in a research report on Wednesday, July 29th. They set a "buy" rating and a $300.00 price target on the stock. Finally, Wells Fargo & Company decreased their price target on Steel Dynamics from $275.00 to $255.00 and set an "overweight" rating on the stock in a research note on Monday, August 24th. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $258.45.

Steel Dynamics Price Performance

Shares of Steel Dynamics stock traded up $0.76 during trading on Wednesday, hitting $241.06. 337,657 shares of the stock traded hands, compared to its average volume of 1,234,179. The stock has a market cap of $34.55 billion, a price-to-earnings ratio of 21.87, a PEG ratio of 0.46 and a beta of 1.50. The firm's fifty day moving average is $241.84 and its 200-day moving average is $225.96. The company has a quick ratio of 1.45, a current ratio of 3.18 and a debt-to-equity ratio of 0.45. Steel Dynamics has a 52 week low of $129.41 and a 52 week high of $288.74.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The basic materials company reported $3.69 EPS for the quarter, topping the consensus estimate of $3.63 by $0.06. The firm had revenue of $6.09 billion for the quarter, compared to the consensus estimate of $5.56 billion. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The business's revenue was up 33.4% compared to the same quarter last year. During the same period last year, the firm posted $2.01 earnings per share. Research analysts expect that Steel Dynamics will post 17.16 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in STLD. Prosperity Bancshares Inc purchased a new position in shares of Steel Dynamics during the fourth quarter valued at about $25,000. Meeder Asset Management Inc. bought a new stake in shares of Steel Dynamics during the second quarter valued at approximately $26,000. MV Capital Management Inc. purchased a new stake in Steel Dynamics in the fourth quarter worth $27,000. Cedar Mountain Advisors LLC purchased a new stake in Steel Dynamics in the first quarter worth $31,000. Finally, NBH Bank bought a new position in Steel Dynamics in the second quarter worth $31,000. 82.41% of the stock is currently owned by institutional investors.

Steel Dynamics Company Profile

Steel Dynamics, Inc is a diversified steel producer and metals recycler headquartered in Fort Wayne, Indiana. The company operates through three primary business segments: steel operations, metals recycling, and steel fabrication. Its steelmaking activities use electric arc furnace technology to produce a range of flat-rolled, long, and specialty steel products.

Steel Dynamics' products include hot-rolled, cold-rolled, and galvanized sheet steel, structural shapes, beams, rail, engineered bar products, and merchant bar.

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