Encompass Capital Advisors LLC Makes New Investment in Steel Dynamics, Inc. $STLD

Key Points

• Encompass Capital Advisors LLC recently acquired 220,407 shares of Steel Dynamics, Inc., valued at approximately $27.57 million, representing 0.15% ownership of the company.
• Steel Dynamics reported a net margin of 6.07% and quarterly revenue of $4.57 billion, which was below analysts' expectations.
• The company announced a quarterly dividend of $0.50 to be paid on October 10th, equating to an annual yield of 1.5%.

Encompass Capital Advisors LLC bought a new position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 220,407 shares of the basic materials company's stock, valued at approximately $27,569,000. Encompass Capital Advisors LLC owned approximately 0.15% of Steel Dynamics as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. BNP Paribas Financial Markets raised its stake in Steel Dynamics by 39.2% during the fourth quarter. BNP Paribas Financial Markets now owns 308,197 shares of the basic materials company's stock valued at $35,156,000 after purchasing an additional 86,821 shares in the last quarter. Baird Financial Group Inc. raised its stake in Steel Dynamics by 7.1% during the fourth quarter. Baird Financial Group Inc. now owns 176,984 shares of the basic materials company's stock valued at $20,189,000 after purchasing an additional 11,758 shares in the last quarter. Cary Street Partners Financial LLC purchased a new stake in Steel Dynamics during the fourth quarter valued at $2,961,000. Captrust Financial Advisors raised its stake in Steel Dynamics by 3.0% during the fourth quarter. Captrust Financial Advisors now owns 56,447 shares of the basic materials company's stock valued at $6,439,000 after purchasing an additional 1,648 shares in the last quarter. Finally, Cetera Investment Advisers raised its stake in Steel Dynamics by 6.2% during the fourth quarter. Cetera Investment Advisers now owns 18,308 shares of the basic materials company's stock valued at $2,088,000 after purchasing an additional 1,071 shares in the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Steel Dynamics Trading Down 0.1%

Shares of NASDAQ STLD traded down $0.09 during mid-day trading on Monday, reaching $134.54. The company had a trading volume of 1,385,090 shares, compared to its average volume of 1,590,734. The business's 50-day moving average is $129.47 and its 200-day moving average is $128.01. The company has a current ratio of 3.13, a quick ratio of 1.34 and a debt-to-equity ratio of 0.43. The stock has a market cap of $19.81 billion, a price-to-earnings ratio of 19.61, a price-to-earnings-growth ratio of 1.09 and a beta of 1.40. Steel Dynamics, Inc. has a 52 week low of $103.17 and a 52 week high of $155.56.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its earnings results on Monday, July 21st. The basic materials company reported $2.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.05 by ($0.04). Steel Dynamics had a return on equity of 11.88% and a net margin of 6.07%.The business had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.82 billion. During the same quarter in the previous year, the company earned $2.72 earnings per share. The firm's revenue was down 1.5% on a year-over-year basis. Equities analysts expect that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.5%. The ex-dividend date is Tuesday, September 30th. Steel Dynamics's dividend payout ratio is presently 29.15%.

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, SVP Christopher A. Graham sold 12,000 shares of the stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $126.71, for a total transaction of $1,520,520.00. Following the transaction, the senior vice president directly owned 66,738 shares in the company, valued at $8,456,371.98. This represents a 15.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 6.30% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on STLD shares. Wells Fargo & Company raised shares of Steel Dynamics to a "strong-buy" rating in a research note on Thursday, August 14th. Morgan Stanley increased their target price on shares of Steel Dynamics from $140.00 to $145.00 and gave the company an "overweight" rating in a research note on Friday, June 20th. Finally, JPMorgan Chase & Co. increased their target price on shares of Steel Dynamics from $138.00 to $150.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $148.70.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.