Jennison Associates LLC Invests $15.79 Million in Steel Dynamics, Inc. $STLD

Key Points

• Jennison Associates LLC opened a new position in Steel Dynamics, acquiring 93,182 shares worth about $15.79 million, representing roughly 0.06% ownership of the company.
• Steel Dynamics beat on year‑over‑year revenue growth but slightly missed quarter expectations with EPS $2.78 vs. $2.79 consensus and revenue of $5.20 billion (est. $5.39B); the company also raised its quarterly dividend to $0.53 ($2.12 annualized).
• Several analysts raised price targets (e.g., BMO to $240, Citi to $255) and issued buy/outperform ratings, but MarketBeat's consensus remains a "Hold" with a $214.30 target while the stock trades near its 1‑year high and a market cap of about $33.06 billion.

Jennison Associates LLC acquired a new position in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) in the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 93,182 shares of the basic materials company's stock, valued at approximately $15,790,000. Jennison Associates LLC owned about 0.06% of Steel Dynamics as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the company. Wealthfront Advisers LLC increased its holdings in shares of Steel Dynamics by 3.7% during the 4th quarter. Wealthfront Advisers LLC now owns 27,856 shares of the basic materials company's stock worth $4,720,000 after buying an additional 981 shares during the last quarter. Certuity LLC acquired a new stake in shares of Steel Dynamics during the 4th quarter worth $247,000. Torren Management LLC acquired a new stake in shares of Steel Dynamics during the 4th quarter worth $34,000. M&T Bank Corp increased its holdings in shares of Steel Dynamics by 31.4% during the 4th quarter. M&T Bank Corp now owns 9,712 shares of the basic materials company's stock worth $1,645,000 after buying an additional 2,322 shares during the last quarter. Finally, James Investment Research Inc. acquired a new stake in shares of Steel Dynamics during the 4th quarter worth $1,320,000. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Steel Dynamics Stock Up 0.3%

Shares of Steel Dynamics stock opened at $229.27 on Friday. The business has a 50-day moving average of $190.61 and a 200-day moving average of $176.99. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. The company has a market capitalization of $33.06 billion, a PE ratio of 24.52, a P/E/G ratio of 0.58 and a beta of 1.48. Steel Dynamics, Inc. has a 1-year low of $119.89 and a 1-year high of $230.94.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its earnings results 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). The business had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The firm's revenue was up 19.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.44 earnings per share. As a group, equities analysts forecast that Steel Dynamics, Inc. will post 14.77 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st were paid a dividend of $0.53 per share. This is a boost from Steel Dynamics's previous quarterly dividend of $0.50. This represents a $2.12 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, March 31st. Steel Dynamics's payout ratio is 22.67%.

Insider Activity

In other news, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction dated 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 completion of the sale, the senior vice president directly owned 122,257 shares in the company, valued at $27,578,734.06. This trade represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of the firm's stock in a transaction dated 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 owned 31,299 shares of the company's stock, valued at $7,038,206.13. This represents a 13.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 6.60% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have recently commented on STLD shares. BMO Capital Markets upped their price objective on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. Wells Fargo & Company upped their price objective on Steel Dynamics from $207.00 to $235.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Citigroup upped their price objective on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a report on Wednesday, April 22nd. Weiss Ratings upgraded Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a report on Wednesday. Finally, KeyCorp increased their price target on Steel Dynamics from $190.00 to $241.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Six investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Steel Dynamics currently has a consensus rating of "Hold" and a consensus price target of $214.30.

Steel Dynamics 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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