Bank of America Corp DE Purchases New Holdings in Steel Dynamics, Inc. $STLD

Key Points

• Bank of America acquired a new 1.15 million-share stake in Steel Dynamics during the second quarter, worth approximately $264.2 million and representing about 0.8% of the company.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $258.45, despite some recent target-price reductions.
• Steel Dynamics exceeded quarterly earnings expectations, reporting $3.69 in EPS and $6.09 billion in revenue, while announcing a quarterly dividend of $0.53 per share, equivalent to a 0.9% annual yield.

Bank of America Corp DE acquired a new stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 1,151,452 shares of the basic materials company's stock, valued at approximately $264,212,000. Bank of America Corp DE owned about 0.80% of Steel Dynamics as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Sapient Capital LLC boosted its holdings in Steel Dynamics by 34.6% in the 2nd quarter. Sapient Capital LLC now owns 447,664 shares of the basic materials company's stock valued at $102,958,000 after purchasing an additional 115,080 shares in the last quarter. Sierra Summit Advisors LLC raised its stake in shares of Steel Dynamics by 1,894.7% during the 4th quarter. Sierra Summit Advisors LLC now owns 62,334 shares of the basic materials company's stock worth $10,562,000 after buying an additional 59,209 shares in the last quarter. BlackRock Inc. purchased a new position in shares of Steel Dynamics during the 2nd quarter worth approximately $2,844,501,000. Larson Financial Group LLC lifted its holdings in shares of Steel Dynamics by 28.7% in the 4th quarter. Larson Financial Group LLC now owns 24,498 shares of the basic materials company's stock valued at $4,151,000 after buying an additional 5,457 shares during the period. Finally, OP Asset Management Ltd acquired a new stake in shares of Steel Dynamics in the 1st quarter valued at approximately $2,568,000. 82.41% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have commented on STLD. KeyCorp restated an "overweight" rating on shares of Steel Dynamics in a research report on Wednesday, July 22nd. Weiss Ratings cut shares of Steel Dynamics from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, September 11th. Wells Fargo & Company lowered their target price on shares of Steel Dynamics from $275.00 to $255.00 and set an "overweight" rating on the stock in a research report on Monday, August 24th. Barclays increased their target price on shares of Steel Dynamics from $270.00 to $272.00 and gave the company an "overweight" rating in a report on Wednesday, July 22nd. Finally, Morgan Stanley decreased their price target on Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 22nd. Eight investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $258.45.

Steel Dynamics Stock Performance

NASDAQ:STLD opened at $238.23 on Thursday. The company has a current ratio of 3.18, a quick ratio of 1.45 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $34.15 billion, a P/E ratio of 21.60, a price-to-earnings-growth ratio of 0.42 and a beta of 1.50. The firm has a 50-day moving average price of $243.47 and a two-hundred day moving average price of $227.89. Steel Dynamics, Inc. has a twelve month low of $134.87 and a twelve month high of $288.74.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.63 by $0.06. The company had revenue of $6.09 billion for the quarter, compared to the consensus estimate of $5.56 billion. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The company's revenue for the quarter was up 33.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.01 earnings per share. As a group, research analysts expect that Steel Dynamics, Inc. will post 18.58 earnings per share for the current fiscal year.

Steel Dynamics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. Steel Dynamics's dividend payout ratio (DPR) is presently 19.22%.

About Steel Dynamics

Steel Dynamics, Inc is a steel producer and metals recycler headquartered in Fort Wayne, Indiana. Founded in 1993, the company operates electric arc furnaces that use recycled steel and other metallic inputs to manufacture a broad range of steel products. Its customers include companies in the construction, automotive, manufacturing, transportation, energy and appliance industries.

Steel Dynamics' steel operations produce flat-rolled steel, structural steel, rail, engineered bar products and other specialty steel products.

Want to see what other hedge funds are holding STLD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Steel Dynamics, Inc. (NASDAQ:STLD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.