Bank of America Issues Pessimistic Forecast for Steel Dynamics (NASDAQ:STLD) Stock Price

Key Points

• Bank of America lowered its price target on Steel Dynamics from $285 to $280 and kept a neutral rating, implying only modest upside from the prior close.
• Despite that cautious view, analyst sentiment overall remains constructive: Steel Dynamics has a Moderate Buy consensus rating and an average price target of $227.36, with several firms recently raising targets or upgrading the stock.
• The stock was trading near $270.13 and is close to its 52-week high, while the company recently reported mixed quarterly results, missing EPS and revenue estimates slightly even as revenue rose 19.1% year over year.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its target price lowered by equities researchers at Bank of America from $285.00 to $280.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the basic materials company's stock. Bank of America's price target points to a potential upside of 3.65% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. KeyCorp lifted their price objective on shares of Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. Wall Street Zen raised shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. Barclays started coverage on shares of Steel Dynamics in a research note on Thursday, May 21st. They issued an "overweight" rating and a $270.00 price objective on the stock. Citigroup lifted their price objective on shares of Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. Finally, BMO Capital Markets lifted their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Steel Dynamics presently has an average rating of "Moderate Buy" and a consensus target price of $227.36.

Steel Dynamics Stock Down 1.5%

STLD stock opened at $270.13 on Thursday. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. Steel Dynamics has a fifty-two week low of $119.89 and a fifty-two week high of $288.74. The firm's 50-day simple moving average is $236.34 and its 200 day simple moving average is $199.19. The stock has a market cap of $39.09 billion, a PE ratio of 28.89, a price-to-earnings-growth ratio of 0.55 and a beta of 1.50.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). The firm had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The firm's revenue was up 19.1% on a year-over-year basis. During the same period last year, the business earned $1.44 EPS. As a group, sell-side analysts predict that Steel Dynamics will post 15.85 EPS for the current year.

Insider Buying and Selling at Steel Dynamics

In other Steel Dynamics news, SVP Richard A. Poinsatte sold 2,300 shares of Steel Dynamics stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total value of $538,453.00. Following the completion of the sale, the senior vice president directly owned 28,618 shares in the company, valued at $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the completion of the sale, the senior vice president owned 122,257 shares of the company's stock, valued at $27,578,734.06. This trade represents a 3.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 22,125 shares of company stock valued at $5,438,227 over the last three months. 6.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Steel Dynamics

A number of institutional investors have recently modified their holdings of STLD. NewEdge Advisors LLC raised its position in shares of Steel Dynamics by 307.5% in the first quarter. NewEdge Advisors LLC now owns 819 shares of the basic materials company's stock valued at $102,000 after purchasing an additional 618 shares during the period. Acadian Asset Management LLC raised its position in shares of Steel Dynamics by 82.7% in the first quarter. Acadian Asset Management LLC now owns 3,485 shares of the basic materials company's stock valued at $435,000 after purchasing an additional 1,578 shares during the period. Jump Financial LLC bought a new position in shares of Steel Dynamics in the second quarter valued at approximately $1,019,000. Qube Research & Technologies Ltd bought a new position in shares of Steel Dynamics in the second quarter valued at approximately $48,746,000. Finally, Sei Investments Co. raised its position in shares of Steel Dynamics by 7.9% in the second quarter. Sei Investments Co. now owns 105,051 shares of the basic materials company's stock valued at $13,447,000 after purchasing an additional 7,712 shares during the period. Institutional investors own 82.41% of the company's stock.

Steel Dynamics Company Profile

Steel Dynamics, Inc is a U.S.-based, diversified steel producer and metals recycler that operates an integrated network of mini-mills, finishing lines and fabrication facilities. Founded in 1993 and headquartered in Fort Wayne, Indiana, the company manufactures a broad range of steel products and provides downstream processing, coating and fabrication services to industrial customers. Its operations combine steelmaking using electric-arc furnaces with extensive metals recycling capabilities, allowing Steel Dynamics to convert scrap ferrous and nonferrous materials into finished steel products.

The company's product portfolio includes flat-rolled steel (coiled and sheet products), structural steel and fabricated components, along with coated and painted steel used in consumer, industrial and construction applications.

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