Steel Dynamics, Inc. $STLD Holdings Lifted by Adage Capital Partners GP L.L.C.

Key Points

• Adage Capital Partners GP L.L.C. increased its stake in Steel Dynamics, Inc. by 27.3%, owning 214,200 shares valued at approximately $26.8 million after acquiring an additional 45,900 shares in Q1.
• Steel Dynamics recently announced a quarterly dividend of $0.50, translating to a 1.5% dividend yield, with an annualized payout of $2.00.
• Despite a miss on earnings with $2.01 EPS against analysts' expectations of $2.05, Steel Dynamics reported revenue of $4.57 billion, down 1.5% year-over-year.

Adage Capital Partners GP L.L.C. raised its holdings in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 27.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 214,200 shares of the basic materials company's stock after buying an additional 45,900 shares during the quarter. Adage Capital Partners GP L.L.C. owned approximately 0.14% of Steel Dynamics worth $26,792,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Ritholtz Wealth Management boosted its holdings in Steel Dynamics by 24.4% in the first quarter. Ritholtz Wealth Management now owns 6,687 shares of the basic materials company's stock valued at $836,000 after acquiring an additional 1,310 shares during the last quarter. Farther Finance Advisors LLC grew its stake in Steel Dynamics by 10.4% during the first quarter. Farther Finance Advisors LLC now owns 1,535 shares of the basic materials company's stock worth $190,000 after buying an additional 145 shares during the period. Wealth Enhancement Advisory Services LLC increased its position in shares of Steel Dynamics by 31.6% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 27,511 shares of the basic materials company's stock worth $3,441,000 after acquiring an additional 6,604 shares in the last quarter. Golden State Wealth Management LLC increased its position in shares of Steel Dynamics by 124.1% in the first quarter. Golden State Wealth Management LLC now owns 948 shares of the basic materials company's stock worth $119,000 after acquiring an additional 525 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its position in shares of Steel Dynamics by 2.7% in the first quarter. State of Alaska Department of Revenue now owns 16,583 shares of the basic materials company's stock worth $2,074,000 after acquiring an additional 435 shares in the last quarter. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Steel Dynamics news, SVP Christopher A. Graham sold 12,000 shares of the stock in a transaction on 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 sale, the senior vice president directly owned 66,738 shares of the company's stock, valued at $8,456,371.98. This trade represents a 15.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 6.30% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

STLD has been the subject of several recent research reports. Wells Fargo & Company raised shares of Steel Dynamics to a "strong-buy" rating in a research report on Thursday, August 14th. Morgan Stanley upped their price target on Steel Dynamics from $140.00 to $145.00 and gave the stock an "overweight" rating in a report on Friday, June 20th. Finally, JPMorgan Chase & Co. upped their price target on Steel Dynamics from $138.00 to $150.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $148.70.

Steel Dynamics Stock Performance

Shares of NASDAQ:STLD traded up $3.77 on Friday, reaching $134.63. 1,290,075 shares of the company's stock were exchanged, compared to its average volume of 1,205,227. The business's 50-day moving average is $129.47 and its two-hundred day moving average is $128.01. The company has a quick ratio of 1.34, a current ratio of 3.13 and a debt-to-equity ratio of 0.43. Steel Dynamics, Inc. has a fifty-two week low of $103.17 and a fifty-two week high of $155.56. The firm has a market capitalization of $19.82 billion, a price-to-earnings ratio of 19.63, a PEG ratio of 1.09 and a beta of 1.40.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results on Monday, July 21st. The basic materials company reported $2.01 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.05 by ($0.04). Steel Dynamics had a return on equity of 11.88% and a net margin of 6.07%.The business had revenue of $4.57 billion during the quarter, compared to the consensus estimate of $4.82 billion. During the same quarter in the previous year, the business posted $2.72 earnings per share. The company's quarterly revenue was down 1.5% compared to the same quarter last year. As a group, equities research analysts forecast that Steel Dynamics, Inc. will post 9.01 EPS for the current year.

Steel Dynamics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be given a $0.50 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $2.00 annualized dividend and a yield of 1.5%. Steel Dynamics's dividend payout ratio (DPR) is currently 29.15%.

Steel Dynamics 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.