Apella Capital LLC Buys New Stake in Steel Dynamics, Inc. $STLD

Key Points

• Apella Capital LLC opened a new position in Steel Dynamics during the first quarter, buying 28,792 shares valued at about $5.18 million.
• Steel Dynamics reported quarterly earnings of $2.78 per share, just below estimates, while revenue reached $5.20 billion, up 19.1% year over year. Analysts still expect the company to post 16.91 EPS for the full year.
• The company declared a quarterly dividend of $0.53 per share, payable July 10, and its stock has also seen insider selling, including recent sales by two senior vice presidents.

Apella Capital LLC purchased a new stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 28,792 shares of the basic materials company's stock, valued at approximately $5,183,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Prosperity Bancshares Inc purchased a new stake in Steel Dynamics during the 4th quarter valued at about $25,000. MV Capital Management Inc. acquired a new position in shares of Steel Dynamics during the 4th quarter valued at about $27,000. Sound Income Strategies LLC boosted its position in shares of Steel Dynamics by 1,500.0% during the 4th quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock valued at $28,000 after acquiring an additional 150 shares during the last quarter. DV Equities LLC purchased a new stake in shares of Steel Dynamics in the fourth quarter valued at about $33,000. Finally, Torren Management LLC purchased a new stake in shares of Steel Dynamics in the fourth quarter valued at about $34,000. Hedge funds and other institutional investors own 82.41% of the company's stock.

Steel Dynamics Price Performance

STLD stock opened at $251.00 on Friday. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. The company has a market capitalization of $36.32 billion, a P/E ratio of 26.84, a PEG ratio of 0.47 and a beta of 1.50. The business has a 50 day simple moving average of $243.35 and a 200-day simple moving average of $202.56. Steel Dynamics, Inc. has a twelve month low of $119.89 and a twelve month high of $288.74.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The company had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same period in the previous year, the firm posted $1.44 EPS. The company's revenue for the quarter was up 19.1% on a year-over-year basis. As a group, equities analysts anticipate that Steel Dynamics, Inc. will post 16.91 EPS for the current year.

Steel Dynamics Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be issued a $0.53 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.8%. Steel Dynamics's dividend payout ratio is currently 22.67%.

Insider Transactions at Steel Dynamics

In related news, SVP James Stanley Anderson sold 10,000 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the transaction, the senior vice president directly owned 102,837 shares in the company, valued at approximately $27,632,301.90. This represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Richard A. Poinsatte sold 2,300 shares of the 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 transaction, the senior vice president directly owned 28,618 shares in the company, valued at $6,699,759.98. This trade represents a 7.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 22,125 shares of company stock worth $5,438,226. Corporate insiders own 6.60% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a report on Saturday, April 18th. JPMorgan Chase & Co. lifted their target price on shares of Steel Dynamics from $192.00 to $205.00 and gave the company a "neutral" rating in a report on Tuesday, April 14th. BMO Capital Markets lifted their target price on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Citigroup raised their price target on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $236.36.

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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