MMCAP International Inc. SPC Cuts Position in Steel Dynamics, Inc. $STLD

Key Points

• MMCAP International cut its stake in Steel Dynamics by 30% in the fourth quarter, selling 4,600 shares and ending with 10,711 shares valued at about $1.8 million.
• Analysts remain largely positive on STLD, with recent price-target hikes from Wells Fargo, KeyCorp, and BMO Capital Markets; the stock currently carries a Moderate Buy consensus and an average target of $219.36.
• Steel Dynamics reported Q1 earnings of $2.78 per share, missing estimates by a penny, while revenue came in below expectations at $5.20 billion; the company also announced a quarterly dividend of $0.53 per share.

MMCAP International Inc. SPC lessened its holdings in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 30.0% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 10,711 shares of the basic materials company's stock after selling 4,600 shares during the quarter. MMCAP International Inc. SPC's holdings in Steel Dynamics were worth $1,815,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Optas LLC lifted its position in Steel Dynamics by 3.0% during the fourth 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. lifted its position in Steel Dynamics by 1.2% during the fourth 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. lifted its position in Steel Dynamics by 4.1% during the third 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 lifted its position in Steel Dynamics by 3.3% during the third 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 lifted its position in Steel Dynamics by 2.4% during the third 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. Hedge funds and other institutional investors own 82.41% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of Steel Dynamics from $207.00 to $235.00 and gave the company an "overweight" rating in a research report on Wednesday, April 22nd. KeyCorp increased their price target on shares of Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. Morgan Stanley reiterated an "underperform" rating and issued a $190.00 price target on shares of Steel Dynamics in a research report on Tuesday, March 17th. Weiss Ratings upgraded shares of Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research report on Wednesday, April 29th. Finally, BMO Capital Markets increased their price target on shares of Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $219.36.

Insider Activity

In other news, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the sale, the senior vice president directly owned 122,257 shares in the company, valued at $27,578,734.06. This trade represents a 3.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Richard A. Poinsatte sold 2,300 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total transaction of $538,453.00. Following the sale, the senior vice president owned 28,618 shares in the company, valued at $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,125 shares of company stock worth $2,751,227 in the last three months. Company insiders own 6.60% of the company's stock.

Steel Dynamics Stock Up 4.4%

STLD opened at $250.49 on Wednesday. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. Steel Dynamics, Inc. has a 1-year low of $119.89 and a 1-year high of $250.68. The company has a market capitalization of $36.25 billion, a PE ratio of 26.79, a PEG ratio of 0.51 and a beta of 1.48. The firm's 50 day simple moving average is $205.48 and its two-hundred day simple moving average is $186.48.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings results 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). The business had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $5.39 billion. Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The firm's revenue was up 19.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.44 earnings per share. As a group, equities analysts forecast that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics's dividend payout ratio (DPR) 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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