Commonwealth Equity Services LLC Trims Holdings in Steel Dynamics, Inc. $STLD

Key Points

• Commonwealth Equity Services LLC reduced its stake in Steel Dynamics by 14.3% in the fourth quarter, selling 6,800 shares and leaving it with 40,744 shares valued at about $6.9 million.
• Several analysts turned more bullish on STLD, with firms like Wells Fargo, KeyCorp, and BMO raising price targets; the stock currently carries a Moderate Buy consensus and a $224.64 average target price.
• Steel Dynamics reported quarterly EPS of $2.78, just below estimates, while revenue rose 19.1% year over year to $5.20 billion. The company also announced a quarterly dividend of $0.53 per share, payable July 10.

Commonwealth Equity Services LLC trimmed its position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 14.3% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 40,744 shares of the basic materials company's stock after selling 6,800 shares during the quarter. Commonwealth Equity Services LLC's holdings in Steel Dynamics were worth $6,904,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of STLD. Cornerstone Planning Group LLC raised its stake in shares of Steel Dynamics by 1,636.4% in the third quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company's stock worth $27,000 after purchasing an additional 180 shares during the last quarter. Sound Income Strategies LLC raised its stake in shares of Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock worth $28,000 after purchasing an additional 150 shares during the last quarter. Torren Management LLC acquired a new stake in Steel Dynamics during the fourth quarter worth about $34,000. Nvest Wealth Strategies Inc. acquired a new stake in Steel Dynamics during the fourth quarter worth about $42,000. Finally, Eagle Bay Advisors LLC acquired a new stake in Steel Dynamics during the fourth quarter worth about $45,000. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms recently commented on STLD. Wells Fargo & Company raised their target price on Steel Dynamics from $235.00 to $293.00 and gave the stock an "overweight" rating in a report on Thursday. Morgan Stanley reaffirmed an "underperform" rating and set a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. KeyCorp raised their target price on Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a report on Tuesday, March 17th. Finally, BMO Capital Markets raised their target price on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $224.64.

Insider Activity

In other news, Director Kenneth W. Cornew sold 5,000 shares of the firm's stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total value of $1,124,350.00. Following the transaction, the director owned 31,299 shares in the company, valued at $7,038,206.13. This trade represents a 13.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Richard A. Poinsatte sold 2,300 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The shares were 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 owned 28,618 shares in the company, 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. Insiders have sold a total of 12,125 shares of company stock worth $2,751,227 over the last quarter. 6.60% of the stock is currently owned by corporate insiders.

Steel Dynamics Stock Down 3.0%

Shares of STLD opened at $268.50 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. Steel Dynamics, Inc. has a 12 month low of $119.89 and a 12 month high of $280.49. The stock's 50 day moving average is $220.99 and its two-hundred day moving average is $192.55. The firm has a market cap of $38.86 billion, a P/E ratio of 28.72, a PEG ratio of 0.59 and a beta of 1.50.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 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 business 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 business posted $1.44 earnings per share. The firm's revenue for the quarter was up 19.1% on a year-over-year basis. Analysts predict that Steel Dynamics, Inc. will post 14.77 earnings per share for the current fiscal year.

Steel Dynamics Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics's dividend payout ratio (DPR) is 22.67%.

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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