Bessemer Group Inc. Has $97.60 Million Holdings in Steel Dynamics, Inc. $STLD

Key Points

• Bessemer Group Inc. massively increased its position in Steel Dynamics, boosting its stake by 56,088.1% in the first quarter to 542,215 shares worth about $97.6 million.
• Steel Dynamics recently reported quarterly earnings of $2.78 per share, just below estimates, on $5.20 billion in revenue, which was below expectations but still up 19.1% year over year.
• The company paid a quarterly dividend of $0.53 per share, while analysts currently view the stock as a Moderate Buy with a consensus price target of $239.18.

Bessemer Group Inc. boosted its stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 56,088.1% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 542,215 shares of the basic materials company's stock after purchasing an additional 541,250 shares during the quarter. Bessemer Group Inc. owned about 0.38% of Steel Dynamics worth $97,598,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Jacobi Capital Management LLC boosted its stake in Steel Dynamics by 1.6% during the 4th quarter. Jacobi Capital Management LLC now owns 3,533 shares of the basic materials company's stock worth $599,000 after acquiring an additional 55 shares during the last quarter. Optas LLC increased its stake in Steel Dynamics by 3.0% in the fourth quarter. Optas LLC now owns 1,979 shares of the basic materials company's stock valued at $335,000 after purchasing an additional 58 shares in the last quarter. Hohimer Wealth Management LLC increased its stake in Steel Dynamics by 1.1% in the fourth quarter. Hohimer Wealth Management LLC now owns 5,708 shares of the basic materials company's stock valued at $967,000 after purchasing an additional 61 shares in the last quarter. Wright Investors Service Inc. raised its holdings in Steel Dynamics by 1.2% in the fourth quarter. Wright Investors Service Inc. now owns 5,555 shares of the basic materials company's stock worth $941,000 after purchasing an additional 64 shares during the period. Finally, Kestra Private Wealth Services LLC raised its holdings in Steel Dynamics by 2.7% in the first quarter. Kestra Private Wealth Services LLC now owns 2,396 shares of the basic materials company's stock worth $431,000 after purchasing an additional 64 shares during the period. Institutional investors and hedge funds own 82.41% of the company's stock.

Steel Dynamics Trading Up 0.2%

STLD opened at $235.51 on Friday. The stock has a market capitalization of $34.08 billion, a P/E ratio of 25.19, a P/E/G ratio of 0.44 and a beta of 1.53. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. Steel Dynamics, Inc. has a 12 month low of $119.89 and a 12 month high of $288.74. The firm's fifty day simple moving average is $245.95 and its 200 day simple moving average is $208.80.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly 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 firm had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same period in the prior year, the business earned $1.44 EPS. The business's revenue for the quarter was up 19.1% compared to the same quarter last year. As a group, research analysts anticipate that Steel Dynamics, Inc. will post 17.27 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were issued a $0.53 dividend. The ex-dividend date was Tuesday, June 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 22.67%.

Analyst Upgrades and Downgrades

STLD has been the subject of several research analyst reports. JPMorgan Chase & Co. decreased their price target on shares of Steel Dynamics from $262.00 to $256.00 and set a "neutral" rating for the company in a report on Wednesday. Bank of America dropped their price objective on Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating on the stock in a research note on Thursday, July 9th. Morgan Stanley lifted their target price on Steel Dynamics from $227.00 to $270.00 and gave the stock an "equal weight" rating in a report on Monday, June 22nd. KeyCorp boosted their target price on Steel Dynamics from $241.00 to $262.00 and gave the company an "overweight" rating in a research note on Wednesday, June 24th. Finally, Weiss Ratings upgraded Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 18th. One 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 stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $239.18.

Insider Buying and Selling at Steel Dynamics

In related news, Director Kenneth W. Cornew sold 5,000 shares of the stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the completion of the transaction, the director owned 31,299 shares in the company, valued at approximately $7,038,206.13. This represents a 13.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Richard A. Poinsatte sold 2,300 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total transaction of $538,453.00. Following the completion of the transaction, the senior vice president directly owned 28,618 shares of the company's stock, valued at approximately $6,699,759.98. This trade represents a 7.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 22,125 shares of company stock worth $5,438,226. Company insiders own 6.60% of the company's stock.

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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