Hsbc Holdings PLC Acquires 494,828 Shares of Steel Dynamics, Inc. $STLD

Key Points

• HSBC Holdings PLC increased its stake in Steel Dynamics by 92.4% in the fourth quarter, buying 494,828 additional shares and bringing its total holding to 1,030,448 shares worth about $174.6 million.
• Steel Dynamics reported quarterly earnings of $2.78 per share, slightly below expectations, while revenue came in at $5.20 billion versus an estimated $5.39 billion. Revenue still rose 19.1% year over year.
• The company declared a quarterly dividend of $0.53 per share, and analysts currently have a consensus rating of “Moderate Buy” with an average price target of $236.36.

Hsbc Holdings PLC grew its holdings in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 92.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 1,030,448 shares of the basic materials company's stock after buying an additional 494,828 shares during the quarter. Hsbc Holdings PLC owned approximately 0.71% of Steel Dynamics worth $174,609,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the stock. Prosperity Bancshares Inc acquired a new stake in shares of Steel Dynamics during the 4th quarter worth approximately $25,000. MV Capital Management Inc. acquired a new position in Steel Dynamics in the fourth quarter valued at approximately $27,000. Sound Income Strategies LLC boosted its stake in Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock valued at $28,000 after acquiring an additional 150 shares during the last quarter. DV Equities LLC acquired a new stake in Steel Dynamics during the 4th quarter worth $33,000. Finally, Torren Management LLC bought a new stake in shares of Steel Dynamics during the 4th quarter valued at $34,000. Institutional investors and hedge funds own 82.41% of the company's stock.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $220.39 on Friday. The company has a fifty day moving average price of $245.84 and a two-hundred day moving average price of $204.81. Steel Dynamics, Inc. has a one year low of $119.89 and a one year high of $288.74. The stock has a market cap of $31.89 billion, a P/E ratio of 23.57, a P/E/G ratio of 0.43 and a beta of 1.53. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33.

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 the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The firm had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same quarter in the prior year, the firm earned $1.44 earnings per share. The firm's revenue for the quarter was up 19.1% on a year-over-year basis. As a group, equities analysts predict that Steel Dynamics, Inc. will post 16.78 EPS for the current year.

Steel Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics's dividend payout ratio is presently 22.67%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 14th. Weiss Ratings upgraded Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 18th. KeyCorp boosted their target price on Steel Dynamics from $241.00 to $262.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 24th. Bank of America reduced their price objective on shares of Steel Dynamics from $285.00 to $280.00 and set a "neutral" rating on the stock in a research note on Thursday, June 18th. Finally, Wells Fargo & Company lowered their target price on shares of Steel Dynamics from $293.00 to $291.00 and set an "overweight" rating for the company in a research note on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $236.36.

Insider Buying and Selling at Steel Dynamics

In related news, SVP Miguel Alvarez sold 4,825 shares of the 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 owned 122,257 shares of the company's stock, valued at $27,578,734.06. This represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP James Stanley Anderson sold 10,000 shares of the firm's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total value of $2,687,000.00. Following the transaction, the senior vice president owned 102,837 shares in the company, valued at approximately $27,632,301.90. This trade represents a 8.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,125 shares of company stock valued at $5,438,226 over the last ninety days. Company insiders own 6.60% of the company's stock.

About Steel Dynamics

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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