Korea Investment CORP Raises Stake in Steel Dynamics, Inc. $STLD

Key Points

• Korea Investment CORP doubled its Steel Dynamics stake in the second quarter, adding 97,405 shares to own 194,464 shares valued at approximately $44.6 million. Institutional investors collectively hold 82.41% of the company.
• Steel Dynamics reported stronger-than-expected quarterly results, with EPS of $3.69 versus the $3.63 consensus and revenue of $6.09 billion, up 33.4% year over year. The company also declared a quarterly dividend of $0.53 per share, representing a 0.9% annualized yield.
• Analysts maintain a “Moderate Buy” consensus on STLD, with eight Buy ratings and four Holds and an average price target of $259.09. Shares recently opened at $228.68, compared with a 12-month range of $126.23 to $288.74.

Korea Investment CORP grew its stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 100.4% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 194,464 shares of the basic materials company's stock after acquiring an additional 97,405 shares during the quarter. Korea Investment CORP owned about 0.14% of Steel Dynamics worth $44,622,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of the stock. Strs Ohio grew its stake in shares of Steel Dynamics by 7.3% in the 4th quarter. Strs Ohio now owns 153,878 shares of the basic materials company's stock valued at $26,075,000 after buying an additional 10,519 shares during the period. Canada Post Corp Registered Pension Plan increased its holdings in shares of Steel Dynamics by 70.5% during the 4th quarter. Canada Post Corp Registered Pension Plan now owns 11,692 shares of the basic materials company's stock worth $1,981,000 after buying an additional 4,835 shares during the last quarter. Ethic Inc. raised its position in shares of Steel Dynamics by 56.5% during the 4th quarter. Ethic Inc. now owns 18,548 shares of the basic materials company's stock valued at $3,143,000 after buying an additional 6,695 shares during the period. M&T Bank Corp raised its position in shares of Steel Dynamics by 372.2% during the 4th quarter. M&T Bank Corp now owns 34,898 shares of the basic materials company's stock valued at $5,913,000 after buying an additional 27,508 shares during the period. Finally, Sapient Capital LLC lifted its holdings in Steel Dynamics by 34.6% in the second quarter. Sapient Capital LLC now owns 447,664 shares of the basic materials company's stock valued at $102,958,000 after acquiring an additional 115,080 shares during the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Insider Activity

In other news, SVP James Stanley Anderson sold 10,000 shares of Steel Dynamics stock in a transaction dated 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 completion of 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. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 6.60% of the company's stock.

Steel Dynamics Price Performance

STLD stock opened at $228.68 on Friday. The company has a market capitalization of $32.78 billion, a PE ratio of 20.73, a P/E/G ratio of 0.43 and a beta of 1.52. Steel Dynamics, Inc. has a 12-month low of $126.23 and a 12-month high of $288.74. The company has a current ratio of 3.18, a quick ratio of 1.45 and a debt-to-equity ratio of 0.45. The business's fifty day moving average price is $245.06 and its 200 day moving average price is $222.27.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The basic materials company reported $3.69 EPS for the quarter, beating the consensus estimate of $3.63 by $0.06. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The business had revenue of $6.09 billion during the quarter, compared to analyst estimates of $5.56 billion. During the same quarter last year, the firm posted $2.01 earnings per share. The business's revenue for the quarter was up 33.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Steel Dynamics, Inc. will post 17.16 EPS for the current year.

Steel Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be given a $0.53 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. Steel Dynamics's dividend payout ratio (DPR) is currently 19.22%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on STLD shares. JPMorgan Chase & Co. increased their price objective on Steel Dynamics from $256.00 to $260.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Bank of America decreased their price target on Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating on the stock in a research note on Thursday, July 9th. UBS Group upped their price target on Steel Dynamics from $165.00 to $276.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. The Goldman Sachs Group initiated coverage on Steel Dynamics in a research report on Wednesday, July 29th. They set a "buy" rating and a $300.00 price objective for the company. Finally, Wells Fargo & Company reduced their price objective on shares of Steel Dynamics from $291.00 to $275.00 and set an "overweight" rating on the stock in a report on Wednesday, July 22nd. Eight research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $259.09.

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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