BMO Capital Markets Forecasts Strong Price Appreciation for Steel Dynamics (NASDAQ:STLD) Stock

Key Points

• BMO Capital Markets has raised its price target for Steel Dynamics (STLD) stock from $155.00 to $167.00, indicating an upside potential of 8.57% from current levels.
• Steel Dynamics reported $2.74 EPS for the last quarter, exceeding estimates and showing an increase in revenue by 11.2% year-over-year.
• The stock currently holds a consensus rating of "Moderate Buy" from analysts, with a target price of approximately $153.33.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its price objective boosted by research analysts at BMO Capital Markets from $155.00 to $167.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the basic materials company's stock. BMO Capital Markets' price objective indicates a potential upside of 8.57% from the stock's current price.

Other equities research analysts also recently issued reports about the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Steel Dynamics in a research report on Wednesday, October 8th. UBS Group set a $158.00 price objective on shares of Steel Dynamics and gave the stock a "buy" rating in a research report on Tuesday. Wells Fargo & Company upped their price objective on shares of Steel Dynamics from $143.00 to $150.00 and gave the stock an "overweight" rating in a research report on Monday, September 15th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Steel Dynamics from $150.00 to $160.00 and gave the stock a "neutral" rating in a research report on Monday, October 13th. Eight investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $153.33.

Steel Dynamics Stock Up 5.2%

Shares of NASDAQ STLD opened at $153.82 on Wednesday. Steel Dynamics has a 1 year low of $103.17 and a 1 year high of $156.24. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.13 and a quick ratio of 1.34. The company has a 50-day moving average price of $136.53 and a 200-day moving average price of $131.11. The stock has a market capitalization of $22.64 billion, a P/E ratio of 20.37, a P/E/G ratio of 1.20 and a beta of 1.40.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Monday, October 20th. The basic materials company reported $2.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.63 by $0.11. Steel Dynamics had a net margin of 6.39% and a return on equity of 12.93%. The business had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.74 billion. During the same period in the prior year, the firm posted $2.05 EPS. The firm's quarterly revenue was up 11.2% compared to the same quarter last year. On average, equities research analysts forecast that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Insider Activity

In related news, SVP Christopher A. Graham sold 12,000 shares of the company's stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $126.71, for a total transaction of $1,520,520.00. Following the sale, the senior vice president directly owned 66,738 shares in the company, valued at approximately $8,456,371.98. This represents a 15.24% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 6.30% of the stock is currently owned by company insiders.

Institutional Trading of Steel Dynamics

Institutional investors have recently modified their holdings of the business. Bartlett & CO. Wealth Management LLC grew its stake in shares of Steel Dynamics by 24.8% in the 3rd quarter. Bartlett & CO. Wealth Management LLC now owns 377 shares of the basic materials company's stock worth $53,000 after buying an additional 75 shares in the last quarter. Harbour Capital Advisors LLC grew its stake in shares of Steel Dynamics by 0.5% in the 2nd quarter. Harbour Capital Advisors LLC now owns 14,828 shares of the basic materials company's stock worth $1,988,000 after buying an additional 80 shares in the last quarter. Hemington Wealth Management grew its stake in shares of Steel Dynamics by 35.9% in the 1st quarter. Hemington Wealth Management now owns 318 shares of the basic materials company's stock worth $39,000 after buying an additional 84 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in shares of Steel Dynamics by 1.6% in the 1st quarter. Sequoia Financial Advisors LLC now owns 5,803 shares of the basic materials company's stock worth $726,000 after buying an additional 91 shares in the last quarter. Finally, Security Financial Services INC. grew its stake in shares of Steel Dynamics by 2.1% in the 3rd quarter. Security Financial Services INC. now owns 4,675 shares of the basic materials company's stock worth $652,000 after buying an additional 94 shares in the last quarter. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.

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