National Pension Service Raises Position in Steel Dynamics, Inc. $STLD

Key Points

• National Pension Service sharply increased its stake in Steel Dynamics by 513.7% in the fourth quarter, ending with 288,248 shares valued at about $48.8 million.
• Wall Street sentiment remains positive, with an average analyst rating of “Moderate Buy” and an average price target of $219.36, though some firms are more cautious.
• Steel Dynamics reported Q1 earnings of $2.78 per share, just below estimates, while revenue rose 19.1% year over year to $5.20 billion; the company also announced a quarterly dividend of $0.53 per share.

National Pension Service boosted its stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 513.7% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 288,248 shares of the basic materials company's stock after buying an additional 241,279 shares during the period. National Pension Service owned 0.20% of Steel Dynamics worth $48,844,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Life Cycle Investment Partners Ltd purchased a new stake in Steel Dynamics in the fourth quarter worth about $586,702,000. Robeco Institutional Asset Management B.V. lifted its holdings in Steel Dynamics by 3.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock worth $340,289,000 after buying an additional 72,122 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Steel Dynamics by 1.0% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,046,791 shares of the basic materials company's stock worth $145,953,000 after buying an additional 10,537 shares during the period. Bank of America Corp DE lifted its holdings in Steel Dynamics by 34.7% in the second quarter. Bank of America Corp DE now owns 1,028,947 shares of the basic materials company's stock worth $131,715,000 after buying an additional 264,827 shares during the period. Finally, Boston Partners purchased a new stake in Steel Dynamics in the third quarter worth about $101,254,000. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

STLD has been the subject of several research analyst reports. Barclays initiated coverage on shares of Steel Dynamics in a report on Thursday, May 21st. They issued an "overweight" rating and a $270.00 price objective for the company. Wells Fargo & Company raised their price objective on shares of Steel Dynamics from $207.00 to $235.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. JPMorgan Chase & Co. raised their price objective on shares of Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a report on Tuesday, April 14th. BMO Capital Markets raised their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. Finally, Morgan Stanley reaffirmed an "underperform" rating and set a $190.00 target price 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 given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $219.36.

Steel Dynamics Price Performance

Shares of NASDAQ STLD opened at $260.15 on Monday. Steel Dynamics, Inc. has a fifty-two week low of $119.89 and a fifty-two week high of $263.09. The company has a 50 day simple moving average of $210.75 and a two-hundred day simple moving average of $188.75. The company has a market capitalization of $37.65 billion, a price-to-earnings ratio of 27.82, a P/E/G ratio of 0.55 and a beta of 1.50. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share 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 the consensus estimate of $5.39 billion. During the same period in the prior year, the business posted $1.44 EPS. Steel Dynamics's revenue for the quarter was up 19.1% on a year-over-year basis. Analysts expect that Steel Dynamics, Inc. will post 14.77 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.8%. Steel Dynamics's dividend payout ratio (DPR) is currently 22.67%.

Insider Buying and Selling at Steel Dynamics

In related news, SVP Richard A. Poinsatte sold 2,300 shares of the firm'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 transaction of $538,453.00. Following the completion of the sale, the senior vice president owned 28,618 shares of the company's stock, valued at $6,699,759.98. This trade represents a 7.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kenneth W. Cornew sold 5,000 shares of the firm's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the sale, the director directly owned 31,299 shares of the company's stock, valued at $7,038,206.13. This trade represents a 13.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 12,125 shares of company stock valued at $2,751,227. Corporate insiders own 6.60% of the company's stock.

Steel Dynamics 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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