Donoghue Forlines LLC Makes New Investment in Steel Dynamics, Inc. $STLD

Key Points

• Donoghue Forlines LLC opened a new position in Steel Dynamics during the fourth quarter, buying 13,384 shares valued at about $2.27 million.
• Steel Dynamics reported Q1 EPS of $2.78, just below estimates, while revenue came in at $5.20 billion, up 19.1% year over year but below expectations.
• The company declared a quarterly dividend of $0.53 per share payable July 10, and analysts currently have a Hold consensus with an average price target of $214.30.

Donoghue Forlines LLC acquired a new position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 13,384 shares of the basic materials company's stock, valued at approximately $2,268,000.

A number of other large investors have also added to or reduced their stakes in STLD. Cornerstone Planning Group LLC increased its stake in Steel Dynamics by 1,636.4% in the 3rd quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company's stock worth $27,000 after acquiring an additional 180 shares during the last quarter. Sound Income Strategies LLC boosted its holdings in shares of Steel Dynamics by 1,500.0% in the 4th 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 period. Torren Management LLC purchased a new position in shares of Steel Dynamics in the 4th quarter worth approximately $34,000. Covestor Ltd boosted its holdings in shares of Steel Dynamics by 44.3% in the 3rd quarter. Covestor Ltd now owns 303 shares of the basic materials company's stock worth $42,000 after purchasing an additional 93 shares during the period. Finally, Nvest Wealth Strategies Inc. purchased a new position in shares of Steel Dynamics in the 4th quarter worth approximately $42,000. Institutional investors own 82.41% of the company's stock.

Steel Dynamics Price Performance

STLD opened at $234.68 on Friday. The business has a fifty day moving average of $197.24 and a 200 day moving average of $182.16. Steel Dynamics, Inc. has a 52-week low of $119.89 and a 52-week high of $243.73. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. The stock has a market cap of $33.96 billion, a P/E ratio of 25.10, a PEG ratio of 0.50 and a beta of 1.48.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $5.39 billion. During the same quarter in the previous year, the firm earned $1.44 EPS. Steel Dynamics's revenue was up 19.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

The firm also recently disclosed 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. The ex-dividend date is Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. Steel Dynamics's payout ratio is presently 22.67%.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on STLD. Morgan Stanley reiterated an "underperform" rating and issued a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. Bank of America cut Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 target price for the company. in a report on Thursday, April 30th. Wells Fargo & Company lifted their target price on Steel Dynamics from $207.00 to $235.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. KeyCorp lifted 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. Finally, BMO Capital Markets lifted 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. Six research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $214.30.

Insider Activity at Steel Dynamics

In related news, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was 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 owned 28,618 shares in the company, valued at $6,699,759.98. The trade was a 7.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total value of $1,124,350.00. Following the sale, the director directly owned 31,299 shares of the company's stock, valued at approximately $7,038,206.13. This trade represents a 13.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,125 shares of company stock worth $2,751,227 in the last quarter. 6.60% of the stock is owned by company insiders.

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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