Mitsubishi UFJ Asset Management Co. Ltd. Invests $75.89 Million in Steel Dynamics, Inc. $STLD

Key Points

• Mitsubishi UFJ Asset Management acquired 330,719 Steel Dynamics shares worth approximately $75.9 million, giving it a 0.23% stake. Institutional investors collectively own 82.41% of the company.
• Steel Dynamics reported quarterly EPS of $3.69, beating estimates of $3.63, while revenue rose 33.4% year over year to $6.09 billion. Analysts maintain a “Moderate Buy” consensus rating with an average target price of $259.09.
• The company declared a quarterly dividend of $0.53 per share, equivalent to $2.12 annually and a 0.8% yield. An insider separately sold 10,000 shares for approximately $2.7 million.

Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 330,719 shares of the basic materials company's stock, valued at approximately $75,887,000. Mitsubishi UFJ Asset Management Co. Ltd. owned about 0.23% of Steel Dynamics at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in the stock. Capital Research Global Investors lifted its position in shares of Steel Dynamics by 0.3% during the fourth quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company's stock worth $613,926,000 after purchasing an additional 9,959 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new stake in Steel Dynamics during the fourth quarter valued at approximately $586,702,000. Norges Bank bought a new position in Steel Dynamics during the 4th quarter worth approximately $564,590,000. Invesco Ltd. grew its position in shares of Steel Dynamics by 6.3% in the 4th quarter. Invesco Ltd. now owns 1,965,092 shares of the basic materials company's stock worth $332,985,000 after acquiring an additional 116,379 shares in the last quarter. Finally, Boston Partners raised its position in shares of Steel Dynamics by 147.9% during the 4th quarter. Boston Partners now owns 1,793,630 shares of the basic materials company's stock valued at $303,970,000 after acquiring an additional 1,070,042 shares in the last quarter. 82.41% of the stock is currently owned by institutional investors.

Insider Activity

In related news, SVP James Stanley Anderson sold 10,000 shares of the stock in a transaction that occurred on 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 directly owned 102,837 shares of the company's stock, valued at $27,632,301.90. This represents a 8.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 6.60% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on STLD. Wells Fargo & Company lowered their target price on shares of Steel Dynamics from $291.00 to $275.00 and set an "overweight" rating for the company in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. boosted their price objective on shares of Steel Dynamics from $256.00 to $260.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Morgan Stanley dropped their price objective on shares of Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 22nd. BMO Capital Markets lifted their target price on Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. Finally, Citigroup increased their price target on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. Eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Steel Dynamics presently has a consensus rating of "Moderate Buy" and a consensus target price of $259.09.

Steel Dynamics Stock Down 3.2%

STLD stock opened at $249.81 on Wednesday. The company has a quick ratio of 1.45, a current ratio of 3.18 and a debt-to-equity ratio of 0.45. Steel Dynamics, Inc. has a fifty-two week low of $124.77 and a fifty-two week high of $288.74. The firm's 50-day simple moving average is $248.10 and its 200 day simple moving average is $221.61. The stock has a market cap of $35.81 billion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 0.48 and a beta of 1.52.

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

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.53 per share. The ex-dividend date is Wednesday, September 30th. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. Steel Dynamics's payout ratio is currently 19.22%.

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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