Lord Abbett & CO. LLC Boosts Stock Position in Steel Dynamics, Inc. $STLD

Key Points

• Lord Abbett & Co. LLC increased its stake in Steel Dynamics by 28% in the fourth quarter, holding 1.63 million shares valued at about $276.1 million at the end of the period.
• Several institutional investors also boosted or initiated positions in STLD, while hedge funds and other institutions now own 82.41% of the company.
• Analysts remain generally positive on Steel Dynamics: the stock has a Moderate Buy consensus with an average price target of $224.64, even as the shares recently traded near $282.76 and the company reported slightly missed quarterly EPS and revenue estimates.

Lord Abbett & CO. LLC raised its position in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 28.0% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 1,629,401 shares of the basic materials company's stock after purchasing an additional 356,507 shares during the quarter. Steel Dynamics accounts for 0.8% of Lord Abbett & CO. LLC's portfolio, making the stock its 23rd largest position. Lord Abbett & CO. LLC owned approximately 1.12% of Steel Dynamics worth $276,102,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in STLD. NewEdge Advisors LLC grew its stake in Steel Dynamics by 307.5% during the 1st quarter. NewEdge Advisors LLC now owns 819 shares of the basic materials company's stock valued at $102,000 after purchasing an additional 618 shares during the last quarter. Acadian Asset Management LLC grew its stake in Steel Dynamics by 82.7% during the 1st quarter. Acadian Asset Management LLC now owns 3,485 shares of the basic materials company's stock valued at $435,000 after purchasing an additional 1,578 shares during the last quarter. Jump Financial LLC purchased a new stake in Steel Dynamics during the 2nd quarter valued at about $1,019,000. Qube Research & Technologies Ltd purchased a new stake in Steel Dynamics during the 2nd quarter valued at about $48,746,000. Finally, Sei Investments Co. grew its stake in Steel Dynamics by 7.9% during the 2nd quarter. Sei Investments Co. now owns 105,051 shares of the basic materials company's stock valued at $13,447,000 after purchasing an additional 7,712 shares during the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Insiders Place Their Bets

In related news, SVP James Stanley Anderson sold 10,000 shares of the company's 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 of the company's stock, valued at approximately $27,632,301.90. This represents a 8.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Richard A. Poinsatte sold 2,300 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total value of $538,453.00. Following the completion of the transaction, the senior vice president directly owned 28,618 shares of the company's stock, valued at $6,699,759.98. The trade was a 7.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 22,125 shares of company stock worth $5,438,227. 6.60% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several analysts have weighed in on STLD shares. Wells Fargo & Company boosted their price target on Steel Dynamics from $235.00 to $293.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. Weiss Ratings raised Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a report on Wednesday, April 29th. BMO Capital Markets boosted their price objective on Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Morgan Stanley reissued an "underperform" rating and issued a $190.00 price objective on shares of Steel Dynamics in a report on Tuesday, March 17th. Finally, KeyCorp boosted their price objective on Steel Dynamics from $190.00 to $241.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $224.64.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $282.76 on Friday. The stock has a market cap of $40.92 billion, a PE ratio of 30.24, a price-to-earnings-growth ratio of 0.57 and a beta of 1.50. The business has a 50-day simple moving average of $230.74 and a 200-day simple moving average of $196.69. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. Steel Dynamics, Inc. has a 52-week low of $119.89 and a 52-week high of $285.88.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.79 by ($0.01). The company had revenue of $5.20 billion during 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 business's quarterly revenue was up 19.1% compared to the same quarter last year. During the same period last year, the firm earned $1.44 EPS. On average, equities analysts expect that Steel Dynamics, Inc. will post 15.32 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. Investors of record on Tuesday, June 30th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.7%. Steel Dynamics's dividend payout ratio is presently 22.67%.

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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