Bank of New York Mellon Corp Grows Stock Position in Steel Dynamics, Inc. $STLD

Key Points

• Bank of New York Mellon increased its stake in Steel Dynamics by 4.3% in the fourth quarter, bringing its holdings to 905,151 shares valued at about $153.4 million. Other large institutions also added to or established positions, and hedge funds and institutions now own 82.41% of the stock.
• Steel Dynamics reported quarterly EPS of $2.78, narrowly missing estimates, on revenue of $5.20 billion versus expectations of $5.39 billion. Revenue still rose 19.1% year over year, and analysts currently expect full-year EPS of 14.77.
• Several analysts recently raised price targets, including Wells Fargo to $293, while the average MarketBeat rating remains “Moderate Buy” with a $224.64 target. The company also announced a quarterly dividend of $0.53 per share, payable July 10.

Bank of New York Mellon Corp boosted its position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 4.3% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 905,151 shares of the basic materials company's stock after buying an additional 37,576 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.62% of Steel Dynamics worth $153,378,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of the company. Life Cycle Investment Partners Ltd purchased a new stake in Steel Dynamics in the fourth quarter worth $586,702,000. Norges Bank purchased a new position in shares of Steel Dynamics in the fourth quarter valued at $564,590,000. Robeco Institutional Asset Management B.V. grew its position in shares of Steel Dynamics by 3.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock valued at $340,289,000 after purchasing an additional 72,122 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Steel Dynamics by 1.0% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,046,791 shares of the basic materials company's stock valued at $145,953,000 after purchasing an additional 10,537 shares in the last quarter. Finally, Bank of America Corp DE grew its position in shares of Steel Dynamics by 34.7% in the second quarter. Bank of America Corp DE now owns 1,028,947 shares of the basic materials company's stock valued at $131,715,000 after purchasing an additional 264,827 shares in the last quarter. 82.41% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction dated 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 owned 28,618 shares of the company's stock, valued at approximately $6,699,759.98. The trade was a 7.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Kenneth W. Cornew sold 5,000 shares of the business's stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total value of $1,124,350.00. Following the completion of the sale, the director directly owned 31,299 shares of the company's stock, valued at approximately $7,038,206.13. This trade represents a 13.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 12,125 shares of company stock valued at $2,751,227. Insiders own 6.60% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on STLD. Wells Fargo & Company lifted their price target on Steel Dynamics from $235.00 to $293.00 and gave the company an "overweight" rating in a research report on Thursday. Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Bank of America cut Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 target price for the company. in a research report on Thursday, April 30th. KeyCorp boosted their target price on Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Finally, Morgan Stanley restated an "underperform" rating and set a $190.00 target price on shares of Steel Dynamics in a research report on Tuesday, March 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Steel Dynamics has an average rating of "Moderate Buy" and an average target price of $224.64.

Steel Dynamics Trading Down 3.0%

NASDAQ STLD opened at $268.50 on Friday. Steel Dynamics, Inc. has a 1-year low of $119.89 and a 1-year high of $280.49. 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 stock has a 50-day moving average of $220.99 and a 200-day moving average of $192.55. The firm has a market cap of $38.86 billion, a PE ratio of 28.72, a price-to-earnings-growth ratio of 0.57 and a beta of 1.50.

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 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 the consensus estimate of $5.39 billion. During the same period last year, the firm posted $1.44 EPS. The company's revenue was up 19.1% on a year-over-year basis. As a group, sell-side analysts forecast that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

The business 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 $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's payout ratio is 22.67%.

Steel Dynamics 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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