174,630 Shares in Steel Dynamics, Inc. $STLD Acquired by Concentric Capital Strategies LP

Key Points

• Concentric Capital Strategies LP bought 174,630 shares of Steel Dynamics in Q3, a stake worth about $24.35 million that makes STLD its 8th-largest holding and represents roughly 1.1% of Concentric's portfolio (Concentric owned ~0.12% of STLD at period end).
• Steel Dynamics raised its quarterly dividend to $0.53 (annualized $2.12) from $0.50, with an ex-dividend date of March 31 and a yield around 1.2% (payout ratio ≈25%).
• In the most recent quarter Steel Dynamics reported EPS of $1.82 (beats by $0.10) while revenue of $4.41B missed estimates but was up 14% year-over-year; analysts' consensus is a "Moderate Buy" with an average price target of $184.22.

Concentric Capital Strategies LP bought a new stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 174,630 shares of the basic materials company's stock, valued at approximately $24,349,000. Steel Dynamics comprises approximately 1.1% of Concentric Capital Strategies LP's investment portfolio, making the stock its 8th largest holding. Concentric Capital Strategies LP owned about 0.12% of Steel Dynamics at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Cornerstone Planning Group LLC grew its holdings 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 buying an additional 180 shares during the last quarter. Toth Financial Advisory Corp grew its position in shares of Steel Dynamics by 50.0% in the third quarter. Toth Financial Advisory Corp now owns 300 shares of the basic materials company's stock valued at $42,000 after purchasing an additional 100 shares during the period. Covestor Ltd increased its stake in Steel Dynamics by 44.3% in the third quarter. Covestor Ltd now owns 303 shares of the basic materials company's stock valued at $42,000 after purchasing an additional 93 shares during the last quarter. CNB Bank purchased a new position in Steel Dynamics during the third quarter worth about $43,000. Finally, Root Financial Partners LLC acquired a new stake in Steel Dynamics in the 3rd quarter worth about $48,000. 82.41% of the stock is owned by hedge funds and other institutional investors.

Steel Dynamics Stock Down 2.6%

Shares of NASDAQ:STLD opened at $170.60 on Friday. The stock has a 50-day simple moving average of $184.81 and a 200-day simple moving average of $163.82. The stock has a market capitalization of $24.72 billion, a P/E ratio of 21.30, a PEG ratio of 0.46 and a beta of 1.43. Steel Dynamics, Inc. has a 1 year low of $103.17 and a 1 year high of $208.47. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.29 and a current ratio of 3.06.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results on Tuesday, January 27th. The basic materials company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.72 by $0.10. The firm had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.62 billion. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. Steel Dynamics's revenue for the quarter was up 14.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.36 earnings per share. Equities analysts forecast that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st will be paid a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from Steel Dynamics's previous quarterly dividend of $0.50. Steel Dynamics's payout ratio is 24.97%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on STLD shares. JPMorgan Chase & Co. increased their price objective on shares of Steel Dynamics from $165.00 to $190.00 and gave the stock a "neutral" rating in a report on Friday, December 5th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Steel Dynamics in a research report on Monday, December 29th. Wall Street Zen downgraded shares of Steel Dynamics from a "strong-buy" rating to a "buy" rating in a research note on Saturday, March 7th. Jefferies Financial Group lifted their price target on shares of Steel Dynamics from $180.00 to $190.00 and gave the company a "buy" rating in a report on Wednesday, December 10th. Finally, KeyCorp reissued an "overweight" rating and set a $190.00 price objective on shares of Steel Dynamics in a research note on Wednesday, January 7th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $184.22.

Steel Dynamics 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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