HMS Capital Management LLC Makes New Investment in Steel Dynamics, Inc. $STLD

Key Points

• HMS Capital Management LLC has acquired a new position in Steel Dynamics, Inc. by purchasing 5,279 shares valued at approximately $660,000.
• The company's quarterly earnings report showed earnings per share of $2.01, which missed analysts' consensus estimates of $2.05, with revenue of $4.57 billion.
• A recent dividend announcement revealed a quarterly dividend of $0.50, translating to an annualized dividend of $2.00 and a yield of 1.6%.

HMS Capital Management LLC purchased a new stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 5,279 shares of the basic materials company's stock, valued at approximately $660,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Forum Financial Management LP grew its position in shares of Steel Dynamics by 2.5% in the 4th quarter. Forum Financial Management LP now owns 3,113 shares of the basic materials company's stock worth $355,000 after buying an additional 75 shares during the last quarter. Hemington Wealth Management grew its position 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 during the last quarter. Sequoia Financial Advisors LLC grew its position 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 during the last quarter. Sunbelt Securities Inc. grew its position in shares of Steel Dynamics by 25.0% in the 1st quarter. Sunbelt Securities Inc. now owns 500 shares of the basic materials company's stock worth $63,000 after buying an additional 100 shares during the last quarter. Finally, Parallel Advisors LLC grew its position in shares of Steel Dynamics by 6.3% in the 1st quarter. Parallel Advisors LLC now owns 1,734 shares of the basic materials company's stock worth $217,000 after buying an additional 102 shares during the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Analyst Ratings Changes

STLD has been the subject of a number of research analyst reports. Wall Street Zen cut Steel Dynamics from a "hold" rating to a "sell" rating in a research note on Friday, April 25th. JPMorgan Chase & Co. raised their target price on Steel Dynamics from $138.00 to $150.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Wells Fargo & Company upgraded Steel Dynamics to a "strong-buy" rating in a research note on Thursday, August 14th. Finally, Morgan Stanley lifted their price objective on Steel Dynamics from $140.00 to $145.00 and gave the company an "overweight" rating in a research note on Friday, June 20th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $148.70.

Insider Activity

In related news, Director Gabriel Shaheen sold 1,254 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $134.11, for a total value of $168,173.94. Following the sale, the director directly owned 81,812 shares in the company, valued at approximately $10,971,807.32. The trade was a 1.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Christopher A. Graham sold 12,000 shares of the business's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $126.71, for a total value of $1,520,520.00. Following the completion of the sale, the senior vice president owned 66,738 shares in the company, valued at $8,456,371.98. This represents a 15.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. 6.30% of the stock is owned by insiders.

Steel Dynamics Stock Performance

Shares of STLD traded up $6.92 during trading hours on Friday, hitting $132.68. The stock had a trading volume of 2,463,401 shares, compared to its average volume of 1,260,762. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.13 and a quick ratio of 1.34. Steel Dynamics, Inc. has a 12 month low of $103.17 and a 12 month high of $155.56. The firm has a market capitalization of $19.53 billion, a PE ratio of 19.34, a PEG ratio of 1.02 and a beta of 1.38. The stock has a fifty day moving average price of $129.13 and a 200 day moving average price of $128.21.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Monday, July 21st. The basic materials company reported $2.01 EPS for the quarter, missing the consensus estimate of $2.05 by ($0.04). Steel Dynamics had a return on equity of 11.88% and a net margin of 6.07%.The firm had revenue of $4.57 billion during the quarter, compared to the consensus estimate of $4.82 billion. During the same period in the previous year, the firm earned $2.72 EPS. The business's revenue was down 1.5% on a year-over-year basis. Analysts anticipate that Steel Dynamics, Inc. will post 9.01 EPS for the current year.

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Stockholders of record on Tuesday, September 30th will be given a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Tuesday, September 30th. Steel Dynamics's payout ratio is presently 29.15%.

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.