Deutsche Bank AG Makes New Investment in Steel Dynamics, Inc. $STLD

Key Points

• Deutsche Bank acquired 551,640 Steel Dynamics shares in the second quarter, worth approximately $126.6 million, giving it a 0.38% stake. Institutional investors collectively own 82.41% of the company.
• Analysts maintain a generally positive outlook, with eight Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $259.09, despite several recent target-price cuts.
• Steel Dynamics reported quarterly EPS of $3.69 and revenue of $6.09 billion, exceeding estimates and representing 33.4% year-over-year revenue growth. Shares opened at $231.01, while the company declared a quarterly dividend of $0.53 per share.

Deutsche Bank AG acquired a new position in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 551,640 shares of the basic materials company's stock, valued at approximately $126,579,000. Deutsche Bank AG owned approximately 0.38% of Steel Dynamics as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Prosperity Bancshares Inc purchased a new stake in Steel Dynamics during the fourth quarter worth approximately $25,000. MV Capital Management Inc. purchased a new position in Steel Dynamics in the fourth quarter valued at approximately $27,000. Cedar Mountain Advisors LLC purchased a new position in Steel Dynamics in the first quarter valued at approximately $31,000. DV Equities LLC acquired a new stake in Steel Dynamics during the fourth quarter worth approximately $33,000. Finally, Torren Management LLC purchased a new stake in shares of Steel Dynamics during the 4th quarter worth approximately $34,000. Institutional investors and hedge funds own 82.41% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on STLD shares. JPMorgan Chase & Co. upped their target price on shares of Steel Dynamics from $256.00 to $260.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Wells Fargo & Company cut their price target on shares of Steel Dynamics from $291.00 to $275.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 22nd. Morgan Stanley reduced their price target on shares of Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 22nd. Bank of America decreased their price objective on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a research note on Thursday, July 9th. Finally, KeyCorp reaffirmed an "overweight" rating on shares of Steel Dynamics in a report on Wednesday, July 22nd. Eight equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $259.09.

Steel Dynamics Trading Down 7.5%

Shares of STLD opened at $231.01 on Thursday. Steel Dynamics, Inc. has a twelve month low of $124.77 and a twelve month high of $288.74. 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 firm has a market capitalization of $33.11 billion, a P/E ratio of 20.94, a PEG ratio of 0.47 and a beta of 1.52. The firm's 50-day moving average is $247.35 and its two-hundred day moving average is $221.95.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.63 by $0.06. The company had revenue of $6.09 billion during 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% on a year-over-year basis. During the same period last year, the firm earned $2.01 EPS. On average, research analysts predict that Steel Dynamics, Inc. will post 17.16 earnings per share for the current fiscal year.

Steel Dynamics Dividend Announcement

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

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, SVP James Stanley Anderson sold 10,000 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the sale, the senior vice president directly owned 102,837 shares in the company, valued at approximately $27,632,301.90. The trade was a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 6.60% of the company's stock.

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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