BMO Capital Markets Boosts Steel Dynamics (NASDAQ:STLD) Price Target to $240.00

Key Points

• BMO Capital Markets raised its price target on Steel Dynamics to $240 (from $195) and maintained an "outperform" rating, implying about a 5.9% upside from the prior close.
• Analyst sentiment is mixed despite several upgrades — KeyCorp lifted its target to $241 and Wells Fargo to $235 (both overweight), while Morgan Stanley keeps an "underperform" at $190; the consensus average target sits at $202 with five Buys, four Holds and one Sell.
• Q1 results showed $2.78 EPS (missed by $0.01) and revenue of $5.20B (below estimates) but revenue was up 19.1% year-over-year; shares traded up about 2.9% to $226.67, near the 12‑month high.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its price objective lifted by BMO Capital Markets from $195.00 to $240.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the basic materials company's stock. BMO Capital Markets' price target suggests a potential upside of 5.88% from the stock's previous close.

Several other research analysts have also commented on the stock. KeyCorp upped their price objective on shares of Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a report on Wednesday. Jefferies Financial Group restated a "buy" rating on shares of Steel Dynamics in a report on Tuesday, March 17th. Weiss Ratings restated a "hold (c+)" rating on shares of Steel Dynamics in a report on Monday, December 29th. Morgan Stanley restated an "underperform" rating and issued a $190.00 price objective on shares of Steel Dynamics in a report on Tuesday, March 17th. Finally, Wells Fargo & Company upped their price objective on shares of Steel Dynamics from $207.00 to $235.00 and gave the stock an "overweight" rating in a report on Wednesday. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Steel Dynamics currently has an average rating of "Hold" and an average target price of $202.00.

Steel Dynamics Trading Up 2.9%

STLD traded up $6.46 during trading on Wednesday, hitting $226.67. 496,302 shares of the stock traded hands, compared to its average volume of 1,280,401. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.06 and a quick ratio of 1.29. Steel Dynamics has a 12-month low of $119.50 and a 12-month high of $226.97. The firm has a market capitalization of $32.80 billion, a P/E ratio of 24.22, a price-to-earnings-growth ratio of 0.56 and a beta of 1.39. The firm has a 50-day moving average of $186.20 and a 200 day moving average of $173.18.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The basic materials company reported $2.78 EPS for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.64% and a net margin of 7.22%.The company had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $5.39 billion. During the same quarter last year, the company posted $1.44 earnings per share. The firm's revenue for the quarter was up 19.1% compared to the same quarter last year. Equities research analysts anticipate that Steel Dynamics will post 14.04 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Prosperity Bancshares Inc bought a new position in shares of Steel Dynamics in the 4th quarter worth about $25,000. Cornerstone Planning Group LLC increased its stake in Steel Dynamics by 1,636.4% during the 3rd quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company's stock valued at $27,000 after purchasing an additional 180 shares in the last quarter. MV Capital Management Inc. bought a new stake in Steel Dynamics during the 4th quarter valued at about $27,000. Sound Income Strategies LLC increased its stake in Steel Dynamics by 1,500.0% during the 4th quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock valued at $28,000 after purchasing an additional 150 shares in the last quarter. Finally, DV Equities LLC bought a new stake in Steel Dynamics during the 4th quarter valued at about $33,000. 82.41% of the stock is currently owned by institutional investors.

Trending Headlines about Steel Dynamics

Here are the key news stories impacting Steel Dynamics this week:

• Positive Sentiment: KeyCorp raised its price target to $241 and kept an overweight rating, supporting bullish sentiment and giving investors a near-term valuation tailwind. Read More.
• Positive Sentiment: Company reported strong shipments and benefited from higher steel prices; top-line momentum and robust demand were cited as drivers of the quarter’s profit and helped investor optimism. Read More.
• Neutral Sentiment: Q1 earnings call transcript, slide deck and multiple write-ups were published (useful for detail and guidance context) — transcripts and slides are available for those parsing guidance and segment detail. Read More.
• Neutral Sentiment: Analyst coverage remains constructive overall (several buy/overweight ratings) but consensus views are mixed; monitor subsequent analyst reaction for further target/ratings changes. Read More.
• Negative Sentiment: Reported EPS of $2.78 missed consensus by $0.01 and revenue of $5.20B missed the $5.39B consensus — the tiny EPS miss and revenue shortfall are immediate near-term negatives investors will weigh. Read More.
• Negative Sentiment: Management noted aluminum segment weakness on the call (aluminum drag), which created some offset to otherwise strong steel performance. Read More.
• Negative Sentiment: Analysts and coverage flagged nuance around a weaker cash position and the small miss — potential concerns for short-term cash/working-capital dynamics and margin sustainability. Read More.

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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