Dividend Assets Capital LLC Makes New $1.51 Million Investment in Steel Dynamics, Inc. $STLD

Key Points

• Dividend Assets Capital LLC initiated a new position in Steel Dynamics, buying 8,407 shares worth about $1.51 million in the first quarter.
• Institutional ownership in STLD remains very high, with hedge funds and other investors holding 82.41% of the company’s stock.
• Analysts remain generally positive on Steel Dynamics, with an average rating of Moderate Buy and an average price target of $236.36, even after the stock recently traded at $220.39.

Dividend Assets Capital LLC purchased a new stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 8,407 shares of the basic materials company's stock, valued at approximately $1,513,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in STLD. Capital Research Global Investors grew its holdings in shares of Steel Dynamics by 0.3% during the fourth quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company's stock valued at $613,926,000 after buying an additional 9,959 shares during the last quarter. Life Cycle Investment Partners Ltd purchased a new position in Steel Dynamics in the 4th quarter worth $586,702,000. Norges Bank purchased a new position in Steel Dynamics in the 4th quarter worth $564,590,000. Robeco Institutional Asset Management B.V. lifted its position in Steel Dynamics by 3.7% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock worth $340,289,000 after acquiring an additional 72,122 shares during the period. Finally, Invesco Ltd. lifted its position in Steel Dynamics by 6.3% during the 4th quarter. Invesco Ltd. now owns 1,965,092 shares of the basic materials company's stock worth $332,985,000 after acquiring an additional 116,379 shares during the period. Hedge funds and other institutional investors own 82.41% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on STLD. Jefferies Financial Group reiterated a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. BMO Capital Markets raised their price objective on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 22nd. KeyCorp lifted their target price on Steel Dynamics from $241.00 to $262.00 and gave the stock an "overweight" rating in a report on Wednesday, June 24th. Morgan Stanley upped their target price on Steel Dynamics from $227.00 to $270.00 and gave the company an "equal weight" rating in a research report on Monday, June 22nd. Finally, Wall Street Zen upgraded shares of Steel Dynamics from a "hold" rating to a "buy" rating in a report on Saturday, April 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Steel Dynamics presently has an average rating of "Moderate Buy" and an average price target of $236.36.

Steel Dynamics Price Performance

NASDAQ:STLD opened at $220.39 on Monday. Steel Dynamics, Inc. has a one year low of $119.89 and a one year high of $288.74. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13. The firm has a market cap of $31.89 billion, a price-to-earnings ratio of 23.57, a PEG ratio of 0.43 and a beta of 1.53. The firm's fifty day moving average is $245.84 and its two-hundred day moving average is $205.06.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings data 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). The company had revenue of $5.20 billion for the quarter, compared to analysts' expectations of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The business's quarterly revenue was up 19.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.44 EPS. Research analysts expect that Steel Dynamics, Inc. will post 16.78 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. Investors of record on Tuesday, June 30th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's dividend payout ratio (DPR) is 22.67%.

Insider Buying and Selling

In other Steel Dynamics news, Director Kenneth W. Cornew sold 5,000 shares of the company'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 sale, the director owned 31,299 shares in the company, valued at approximately $7,038,206.13. This represents a 13.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the sale, the senior vice president directly owned 122,257 shares in the company, valued at $27,578,734.06. The trade was a 3.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,125 shares of company stock valued at $5,438,226 in the last ninety days. 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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