Louisiana State Employees Retirement System Buys New Stake in Steel Dynamics, Inc. $STLD

Key Points

• Louisiana State Employees Retirement System disclosed a new position in Steel Dynamics during the first quarter, buying 7,000 shares worth about $1.26 million.
• Steel Dynamics reported quarterly EPS of $2.78, slightly below analyst expectations, while revenue came in at $5.20 billion and rose 19.1% year over year.
• The company also announced a quarterly dividend of $0.53 per share, payable July 10, and analysts currently have a Moderate Buy consensus with a price target of $236.36.

Louisiana State Employees Retirement System bought a new stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 7,000 shares of the basic materials company's stock, valued at approximately $1,260,000.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Prosperity Bancshares Inc purchased a new stake in shares of Steel Dynamics during the 4th quarter valued at $25,000. MV Capital Management Inc. purchased a new position in Steel Dynamics during the 4th quarter worth $27,000. Sound Income Strategies LLC grew its stake in Steel Dynamics by 1,500.0% during the 4th quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock worth $28,000 after buying an additional 150 shares during the last quarter. DV Equities LLC acquired a new position in Steel Dynamics during the 4th quarter valued at about $33,000. Finally, Torren Management LLC acquired a new position in Steel Dynamics during the 4th quarter valued at about $34,000. 82.41% of the stock is owned by hedge funds and other institutional investors.

Steel Dynamics Price Performance

NASDAQ:STLD opened at $220.39 on Friday. The firm has a market capitalization of $31.89 billion, a P/E ratio of 23.57, a PEG ratio of 0.43 and a beta of 1.53. Steel Dynamics, Inc. has a 1-year low of $119.89 and a 1-year high of $288.74. The company's fifty day moving average price is $245.84 and its 200-day moving average price is $204.81. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The business had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same quarter in the prior year, the firm earned $1.44 earnings per share. The company's revenue for the quarter was up 19.1% on a year-over-year basis. As a group, equities research analysts anticipate that Steel Dynamics, Inc. will post 16.78 EPS for the current year.

Steel Dynamics Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's payout ratio is 22.67%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on STLD. Barclays initiated coverage on Steel Dynamics in a research note on Thursday, May 21st. They set an "overweight" rating and a $270.00 price target on the stock. BMO Capital Markets upped their price target on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. Wells Fargo & Company lowered their price objective on shares of Steel Dynamics from $293.00 to $291.00 and set an "overweight" rating for the company in a research note on Thursday, June 18th. Wall Street Zen raised Steel Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $236.36.

Insider Buying and Selling

In related news, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction that occurred on 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 transaction, the senior vice president directly owned 122,257 shares in the company, valued at approximately $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 can be accessed through this hyperlink. Also, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 22,125 shares of company stock worth $5,438,226. Corporate insiders own 6.60% of the company's stock.

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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