Hsbc Holdings PLC Cuts Position in Steel Dynamics, Inc. $STLD

Key Points

• Hsbc Holdings PLC reduced its ownership in Steel Dynamics, Inc. by 11.7% during the first quarter, selling 87,882 shares, which valued their remaining stake at approximately $82,455,000.
• Steel Dynamics recently reported earnings of $2.01 EPS for the last quarter, missing analysts' expectations, with revenue down 1.5% year-over-year.
• The company announced a quarterly dividend of $0.50 per share, representing an annual yield of 1.6%, with an ex-dividend date set for September 30th.

Hsbc Holdings PLC lowered its holdings in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 11.7% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 660,286 shares of the basic materials company's stock after selling 87,882 shares during the period. Hsbc Holdings PLC owned about 0.44% of Steel Dynamics worth $82,455,000 as of its most recent filing with the SEC.

Other hedge funds have also added to or reduced their stakes in the company. Victory Capital Management Inc. increased its holdings in shares of Steel Dynamics by 433.1% in the first quarter. Victory Capital Management Inc. now owns 1,816,525 shares of the basic materials company's stock worth $227,211,000 after buying an additional 1,475,767 shares during the period. Robeco Institutional Asset Management B.V. grew its position in Steel Dynamics by 531.0% during the 1st quarter. Robeco Institutional Asset Management B.V. now owns 1,191,669 shares of the basic materials company's stock worth $149,054,000 after acquiring an additional 1,002,813 shares during the last quarter. Nuveen LLC purchased a new position in Steel Dynamics in the 1st quarter worth approximately $62,470,000. Price T Rowe Associates Inc. MD increased its stake in Steel Dynamics by 8.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,628,403 shares of the basic materials company's stock worth $642,033,000 after purchasing an additional 451,630 shares during the period. Finally, GAMMA Investing LLC lifted its position in Steel Dynamics by 18,398.4% in the first quarter. GAMMA Investing LLC now owns 447,661 shares of the basic materials company's stock valued at $55,993,000 after purchasing an additional 445,241 shares during the last quarter. 82.41% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, SVP Christopher A. Graham sold 12,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $126.71, for a total value of $1,520,520.00. Following the completion of the transaction, the senior vice president owned 66,738 shares of the company's stock, valued at approximately $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 accessible through the SEC website. Also, Director Gabriel Shaheen sold 1,254 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $134.11, for a total value of $168,173.94. Following the completion of the transaction, the director owned 81,812 shares of the company's stock, valued at approximately $10,971,807.32. The trade was a 1.51% decrease in their position. The disclosure for this sale can be found here. 6.30% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research analysts have recently issued reports on STLD shares. Wall Street Zen cut shares of Steel Dynamics from a "hold" rating to a "sell" rating in a report on Friday, April 25th. JPMorgan Chase & Co. increased their price target on shares of Steel Dynamics from $138.00 to $150.00 and gave the company a "neutral" rating in a research report on Monday, July 14th. Morgan Stanley boosted their price objective on shares of Steel Dynamics from $140.00 to $145.00 and gave the company an "overweight" rating in a research report on Friday, June 20th. Finally, Wells Fargo & Company raised shares of Steel Dynamics to a "strong-buy" rating in a research note on Thursday, August 14th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $148.70.

Steel Dynamics Trading Up 5.5%

Steel Dynamics stock traded up $6.92 during mid-day trading on Friday, reaching $132.68. 2,463,401 shares of the company traded hands, compared to its average volume of 1,260,762. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.13 and a quick ratio of 1.34. Steel Dynamics, Inc. has a 52-week low of $103.17 and a 52-week high of $155.56. The firm has a market capitalization of $19.53 billion, a price-to-earnings ratio of 19.34, a P/E/G ratio of 1.07 and a beta of 1.38. The firm's 50 day moving average price is $129.13 and its 200 day moving average price is $128.20.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Monday, July 21st. The basic materials company reported $2.01 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 company had revenue of $4.57 billion during the quarter, compared to analysts' expectations of $4.82 billion. During the same period in the prior year, the business posted $2.72 earnings per share. The company's revenue for the quarter was down 1.5% on a year-over-year basis. On average, analysts anticipate that Steel Dynamics, Inc. will post 9.01 earnings per share for the current fiscal year.

Steel Dynamics Dividend Announcement

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

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.