AlphaQuest LLC Increases Stake in Steel Dynamics, Inc. $STLD

Key Points

• AlphaQuest LLC sharply boosted its stake in Steel Dynamics by 197.9% in the fourth quarter, ending with 14,732 shares valued at about $2.50 million.
• Several other institutional investors also modestly increased their holdings, and hedge funds and institutions now own 82.41% of the company. Meanwhile, insiders sold shares over the last 90 days, including two senior vice presidents.
• Steel Dynamics reported mixed quarterly results: EPS of $2.78 slightly missed estimates, while revenue of $5.20 billion also came in below expectations but still rose 19.1% year over year. The company also announced a $0.53 quarterly dividend, and analysts maintain a Moderate Buy consensus with an average price target of $219.36.

AlphaQuest LLC increased its position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 197.9% in the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 14,732 shares of the basic materials company's stock after acquiring an additional 9,787 shares during the quarter. AlphaQuest LLC's holdings in Steel Dynamics were worth $2,496,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the company. Optas LLC increased its holdings in Steel Dynamics by 3.0% in the 4th quarter. Optas LLC now owns 1,979 shares of the basic materials company's stock worth $335,000 after acquiring an additional 58 shares during the last quarter. Wright Investors Service Inc. grew its holdings in Steel Dynamics by 1.2% during the 4th quarter. Wright Investors Service Inc. now owns 5,555 shares of the basic materials company's stock valued at $941,000 after buying an additional 64 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Steel Dynamics by 4.1% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the basic materials company's stock valued at $246,000 after buying an additional 70 shares in the last quarter. Choreo LLC grew its holdings in Steel Dynamics by 3.3% during the 3rd quarter. Choreo LLC now owns 2,521 shares of the basic materials company's stock valued at $353,000 after buying an additional 80 shares in the last quarter. Finally, Laird Norton Wetherby Wealth Management LLC grew its holdings in Steel Dynamics by 2.4% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 3,468 shares of the basic materials company's stock valued at $484,000 after buying an additional 80 shares in the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Insider Buying and Selling

In related news, SVP Miguel Alvarez sold 4,825 shares of the company's stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total value of $1,088,423.50. Following the sale, the senior vice president directly owned 122,257 shares of the company's stock, valued at $27,578,734.06. This represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Richard A. Poinsatte sold 2,300 shares of the company's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total value of $538,453.00. Following the completion of the sale, the senior vice president directly owned 28,618 shares in the company, valued at approximately $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,125 shares of company stock valued at $2,751,227 over the last ninety days. Company insiders own 6.60% of the company's stock.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $250.49 on Wednesday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13. Steel Dynamics, Inc. has a fifty-two week low of $119.89 and a fifty-two week high of $250.68. The company has a market capitalization of $36.25 billion, a P/E ratio of 26.79, a PEG ratio of 0.51 and a beta of 1.48. The stock has a 50 day moving average price of $205.48 and a two-hundred day moving average price of $186.48.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The business had revenue of $5.20 billion for the quarter, compared to analysts' expectations of $5.39 billion. During the same period last year, the firm posted $1.44 earnings per share. Steel Dynamics's quarterly revenue was up 19.1% on a year-over-year basis. Analysts expect that Steel Dynamics, Inc. will post 14.77 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. Steel Dynamics's payout ratio is 22.67%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Weiss Ratings raised Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a report on Wednesday, April 29th. KeyCorp lifted their price target on Steel Dynamics from $190.00 to $241.00 and gave the company an "overweight" rating in a research report on Wednesday, April 22nd. BMO Capital Markets lifted their price target on Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research report on Wednesday, April 22nd. Jefferies Financial Group reiterated a "buy" rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Finally, Barclays initiated coverage on Steel Dynamics in a research report on Thursday, May 21st. They set an "overweight" rating and a $270.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $219.36.

Steel Dynamics Company 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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