Capital Research Global Investors Increases Stake in Steel Dynamics, Inc. $STLD

Key Points

• Capital Research Global Investors slightly increased its stake in Steel Dynamics to 3,613,095 shares (a 2.47% ownership, worth roughly $503.8M) in Q3, and institutional investors now own about 82.41% of the stock.
• Steel Dynamics beat quarterly EPS estimates ($1.82 vs. $1.72) and reported revenue up 14% year-over-year to $4.41B, with a market cap of $26.4B and a trailing PE of 22.75.
• The company raised its quarterly dividend to $0.53 (annualized $2.12, ~1.2% yield), while analysts remain split (five Buy, five Hold) with an average price target of $184.22 and an overall "Moderate Buy" consensus.

Capital Research Global Investors grew its stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 0.2% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 3,613,095 shares of the basic materials company's stock after buying an additional 8,483 shares during the quarter. Capital Research Global Investors owned 2.47% of Steel Dynamics worth $503,774,000 as of its most recent filing with the SEC.

Several other institutional investors have also modified their holdings of STLD. Bank of Montreal Can boosted its position in shares of Steel Dynamics by 7.9% in the 3rd quarter. Bank of Montreal Can now owns 308,038 shares of the basic materials company's stock valued at $42,950,000 after purchasing an additional 22,588 shares during the period. Banque Cantonale Vaudoise raised its holdings in shares of Steel Dynamics by 6.7% in the third quarter. Banque Cantonale Vaudoise now owns 14,840 shares of the basic materials company's stock valued at $2,069,000 after buying an additional 935 shares during the last quarter. Schroder Investment Management Group boosted its stake in shares of Steel Dynamics by 7.9% during the third quarter. Schroder Investment Management Group now owns 249,142 shares of the basic materials company's stock worth $34,476,000 after buying an additional 18,226 shares during the period. CreativeOne Wealth LLC acquired a new stake in shares of Steel Dynamics during the third quarter worth about $211,000. Finally, Grantham Mayo Van Otterloo & Co. LLC increased its position in Steel Dynamics by 4.4% in the 3rd quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 154,739 shares of the basic materials company's stock valued at $21,575,000 after acquiring an additional 6,460 shares during the period. 82.41% of the stock is owned by hedge funds and other institutional investors.

Steel Dynamics Stock Performance

Steel Dynamics stock opened at $182.19 on Wednesday. The firm has a market capitalization of $26.40 billion, a PE ratio of 22.75, a price-to-earnings-growth ratio of 0.49 and a beta of 1.43. The stock's 50 day moving average price is $184.51 and its 200 day moving average price is $163.33. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.29 and a current ratio of 3.06. Steel Dynamics, Inc. has a one year low of $103.17 and a one year high of $208.47.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings results on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.72 by $0.10. The business had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.62 billion. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The business's revenue was up 14.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.36 earnings per share. As a group, sell-side analysts expect that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 10th. Shareholders of record on Tuesday, March 31st will be given a dividend of $0.53 per share. This is a boost from Steel Dynamics's previous quarterly dividend of $0.50. The ex-dividend date is Tuesday, March 31st. This represents a $2.12 dividend on an annualized basis and a yield of 1.2%. Steel Dynamics's payout ratio is presently 24.97%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on STLD. Morgan Stanley reaffirmed an "equal weight" rating and set a $194.00 price objective (up from $173.00) on shares of Steel Dynamics in a research report on Friday, January 9th. Weiss Ratings restated a "hold (c+)" rating on shares of Steel Dynamics in a research note on Monday, December 29th. JPMorgan Chase & Co. boosted their price target on shares of Steel Dynamics from $165.00 to $190.00 and gave the stock a "neutral" rating in a research note on Friday, December 5th. Wells Fargo & Company boosted their target price on Steel Dynamics from $190.00 to $210.00 and gave the stock an "overweight" rating in a research report on Monday, March 2nd. Finally, Wall Street Zen cut Steel Dynamics from a "strong-buy" rating to a "buy" rating in a report on Saturday. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Steel Dynamics has an average rating of "Moderate Buy" and an average price target of $184.22.

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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