Steel Dynamics, Inc. (NASDAQ:STLD) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Steel Dynamics: nine of 13 rate it a buy and four recommend holding. The average 12-month price target is $275.17.
• In its latest quarter, the company reported EPS of $5.26, below the $5.48 consensus, while revenue of $6.51 billion beat expectations and rose 34.8% year over year.
• Executive Vice President Barry Schneider sold 50,000 shares for about $12.45 million, reducing his holdings by 20.29%; institutional investors own 82.41% of the stock.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the thirteen research firms that are covering the stock, MarketBeat reports. Four analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 1-year price target among brokers that have covered the stock in the last year is $275.17.

STLD has been the subject of a number of recent analyst reports. BNP Paribas Exane upped their price objective on shares of Steel Dynamics from $275.00 to $276.00 and gave the company an "outperform" rating in a research report on Wednesday, October 21st. Weiss Ratings upgraded shares of Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, October 28th. BMO Capital Markets cut their price objective on shares of Steel Dynamics from $296.00 to $290.00 and set an "outperform" rating for the company in a report on Tuesday, September 29th. JPMorgan Chase & Co. lowered their target price on Steel Dynamics from $272.00 to $260.00 and set a "neutral" rating on the stock in a report on Friday, October 9th. Finally, Wells Fargo & Company raised their price objective on shares of Steel Dynamics from $257.00 to $271.00 and gave the company an "overweight" rating in a research note on Wednesday, October 21st.

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, EVP Barry Schneider sold 50,000 shares of Steel Dynamics stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $248.91, for a total transaction of $12,445,500.00. Following the completion of the sale, the executive vice president owned 196,399 shares of the company's stock, valued at $48,885,675.09. The trade was a 20.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 6.60% of the company's stock.

Institutional Investors Weigh In On Steel Dynamics

Several hedge funds have recently made changes to their positions in STLD. Shah Wealth Advisors LLC purchased a new position in Steel Dynamics in the 3rd quarter worth approximately $304,000. Fisher Asset Management LLC increased its stake in Steel Dynamics by 15.9% in the 3rd quarter. Fisher Asset Management LLC now owns 154,694 shares of the basic materials company's stock valued at $34,282,000 after purchasing an additional 21,190 shares in the last quarter. Private Advisory Group LLC increased its position in Steel Dynamics by 30.8% during the third quarter. Private Advisory Group LLC now owns 3,333 shares of the basic materials company's stock worth $739,000 after buying an additional 785 shares in the last quarter. Russell Investments Group Ltd. lifted its position in Steel Dynamics by 2.7% during the third quarter. Russell Investments Group Ltd. now owns 168,048 shares of the basic materials company's stock worth $37,245,000 after buying an additional 4,358 shares during the period. Finally, Maryland State Retirement & Pension System raised its holdings in Steel Dynamics by 16.0% in the third quarter. Maryland State Retirement & Pension System now owns 8,245 shares of the basic materials company's stock valued at $1,827,000 after buying an additional 1,136 shares during the period. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Stock Up 0.5%

Shares of NASDAQ:STLD opened at $222.90 on Friday. Steel Dynamics has a 12-month low of $150.22 and a 12-month high of $288.74. The stock has a market capitalization of $31.70 billion, a P/E ratio of 16.45, a price-to-earnings-growth ratio of 0.36 and a beta of 1.45. The stock's 50-day moving average price is $238.37 and its 200-day moving average price is $224.89. The company has a current ratio of 3.14, a quick ratio of 1.48 and a debt-to-equity ratio of 0.43.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its earnings results on Monday, October 19th. The basic materials company reported $5.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $5.48 by ($0.22). The company had revenue of $6.51 billion for the quarter, compared to analysts' expectations of $6.43 billion. Steel Dynamics had a net margin of 8.82% and a return on equity of 21.57%. The firm's revenue for the quarter was up 34.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.74 earnings per share. On average, equities analysts anticipate that Steel Dynamics will post 18.12 earnings per share for the current year.

Steel Dynamics Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th were paid a $0.53 dividend. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $2.12 annualized dividend and a yield of 1.0%. Steel Dynamics's payout ratio is 15.65%.

About Steel Dynamics

Steel Dynamics, Inc is a U.S.-based steel producer and metals recycler founded in 1993. The company operates electric-arc-furnace steel mills and produces flat-rolled, structural, engineered bar, merchant bar and rail products for customers across a range of industries.

Its businesses also include metals recycling, steel fabrication and aluminum operations. Through these activities, Steel Dynamics collects and processes scrap metal, manufactures steel components and supplies products used in construction, automotive manufacturing, energy and other markets.

Headquartered in Fort Wayne, Indiana, the company serves customers primarily in the United States and Mexico.

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