Fullerton Fund Management Co Ltd. Invests $628,000 in Steel Dynamics, Inc. $STLD

Key Points

• Fullerton Fund Management opened a new position in Steel Dynamics, buying 3,706 shares valued at about $628,000 in the fourth quarter.
• Steel Dynamics reported quarterly earnings of $2.78 per share, slightly below estimates, while revenue rose 19.1% year over year to $5.20 billion. Analysts still expect the company to earn 15.85 EPS for the full year.
• The company announced a quarterly dividend of $0.53 per share, payable July 10, and its stock has traded near its 52-week high after rising to around $274.29.

Fullerton Fund Management Co Ltd. acquired a new position in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 3,706 shares of the basic materials company's stock, valued at approximately $628,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. Jacobi Capital Management LLC raised its stake in shares of Steel Dynamics by 1.6% during the 4th quarter. Jacobi Capital Management LLC now owns 3,533 shares of the basic materials company's stock worth $599,000 after purchasing an additional 55 shares in the last quarter. Optas LLC increased its stake in shares of Steel Dynamics by 3.0% during the 4th quarter. Optas LLC now owns 1,979 shares of the basic materials company's stock worth $335,000 after purchasing an additional 58 shares during the last quarter. Hohimer Wealth Management LLC increased its stake in shares of Steel Dynamics by 1.1% during the 4th quarter. Hohimer Wealth Management LLC now owns 5,708 shares of the basic materials company's stock worth $967,000 after purchasing an additional 61 shares during the last quarter. Wright Investors Service Inc. raised its holdings in shares of Steel Dynamics by 1.2% in the 4th quarter. Wright Investors Service Inc. now owns 5,555 shares of the basic materials company's stock valued at $941,000 after purchasing an additional 64 shares during the period. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in Steel Dynamics by 4.1% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the basic materials company's stock valued at $246,000 after purchasing an additional 70 shares during the last quarter. Institutional investors own 82.41% of the company's stock.

Steel Dynamics Stock Up 0.8%

STLD opened at $274.29 on Wednesday. Steel Dynamics, Inc. has a 1-year low of $119.89 and a 1-year high of $288.74. The stock's fifty day simple moving average is $234.47 and its 200 day simple moving average is $198.46. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. The stock has a market cap of $39.70 billion, a PE ratio of 29.34, a price-to-earnings-growth ratio of 0.54 and a beta of 1.50.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results 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). 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 the consensus estimate of $5.39 billion. During the same quarter last year, the company posted $1.44 EPS. The firm's revenue was up 19.1% on a year-over-year basis. As a group, research analysts expect that Steel Dynamics, Inc. will post 15.85 earnings per share for the current year.

Steel Dynamics Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's dividend payout ratio is currently 22.67%.

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, SVP Richard A. Poinsatte sold 2,300 shares of the company's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total value of $538,453.00. Following the transaction, the senior vice president directly owned 28,618 shares of the company's stock, valued at $6,699,759.98. This represents a 7.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of the company's 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 completion of the transaction, the director directly owned 31,299 shares in the company, valued at approximately $7,038,206.13. This represents a 13.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 22,125 shares of company stock valued at $5,438,227. Corporate insiders own 6.60% of the company's stock.

Wall Street Analyst Weigh In

STLD has been the subject of several recent analyst reports. Bank of America downgraded shares of Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 target price for the company. in a research note on Thursday, April 30th. Barclays initiated coverage on shares of Steel Dynamics in a research note on Thursday, May 21st. They issued an "overweight" rating and a $270.00 target price for the company. Wall Street Zen upgraded shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. Citigroup increased their price target on Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Finally, BMO Capital Markets increased their price target on Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Steel Dynamics currently has an average rating of "Moderate Buy" and an average target price of $224.64.

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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