Life Cycle Investment Partners Ltd Takes Position in Steel Dynamics, Inc. $STLD

Key Points

• Life Cycle Investment Partners disclosed a new fourth-quarter stake in Steel Dynamics, buying 3,462,392 shares worth about $586.7 million. The position represents roughly 4.1% of its portfolio and 2.37% of Steel Dynamics’ shares outstanding.
• Steel Dynamics reported quarterly earnings of $2.78 per share, slightly below estimates, on revenue of $5.20 billion, also below forecasts. Revenue still rose 19.1% year over year, and analysts expect full-year EPS of 14.77.
• The company announced a quarterly dividend of $0.53 per share payable July 10, while shares traded up 3.5% to $240.03, near the 52-week high. Analysts remain generally constructive, with a consensus rating of Moderate Buy and an average target price of $219.36.

Life Cycle Investment Partners Ltd purchased a new stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 3,462,392 shares of the basic materials company's stock, valued at approximately $586,702,000. Steel Dynamics accounts for about 4.1% of Life Cycle Investment Partners Ltd's investment portfolio, making the stock its 6th biggest position. Life Cycle Investment Partners Ltd owned 2.37% of Steel Dynamics as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently modified their holdings of the company. Optas LLC increased its position 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 valued at $335,000 after purchasing an additional 58 shares during the period. Wright Investors Service Inc. increased its position in shares of Steel Dynamics by 1.2% during 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. Northwestern Mutual Wealth Management Co. increased its position in shares of Steel Dynamics by 4.1% during 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 period. Choreo LLC increased its position in shares of Steel Dynamics by 3.3% during the 3rd quarter. Choreo LLC now owns 2,521 shares of the basic materials company's stock valued at $353,000 after purchasing an additional 80 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC increased its position in shares of Steel Dynamics by 2.4% during the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 3,468 shares of the basic materials company's stock valued at $484,000 after purchasing an additional 80 shares during the period. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the transaction, the director owned 31,299 shares in the company, valued at approximately $7,038,206.13. The trade was a 13.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total value of $1,088,423.50. Following the transaction, the senior vice president owned 122,257 shares in the company, valued at $27,578,734.06. This represents a 3.80% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 12,125 shares of company stock worth $2,751,227. 6.60% of the stock is owned by corporate insiders.

Steel Dynamics Trading Up 3.5%

Steel Dynamics stock opened at $240.03 on Friday. Steel Dynamics, Inc. has a 52 week low of $119.89 and a 52 week high of $243.73. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13. The firm has a market capitalization of $34.74 billion, a price-to-earnings ratio of 25.67, a P/E/G ratio of 0.51 and a beta of 1.48. The company has a 50 day moving average price of $202.58 and a 200 day moving average price of $184.97.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted 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 analysts' expectations of $5.39 billion. During the same quarter in the previous year, the firm posted $1.44 earnings per share. The company's revenue for the quarter was up 19.1% on a year-over-year basis. Research analysts forecast that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.53 per share. The ex-dividend date is Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. Steel Dynamics's payout ratio is currently 22.67%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on STLD. Citigroup lifted their price target on Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research report on Wednesday, April 22nd. Bank of America cut Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 price target on the stock. in a research report on Thursday, April 30th. Barclays assumed coverage on Steel Dynamics in a report on Thursday. They issued an "overweight" rating and a $270.00 target price on the stock. Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a report on Saturday, April 18th. Finally, Morgan Stanley restated an "underperform" rating and issued a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $219.36.

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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