Nordea Investment Management AB Increases Stock Position in Steel Dynamics, Inc. $STLD

Key Points

• Nordea Investment Management AB has increased its stake in Steel Dynamics, Inc. by 43.3%, owning about 1.41% of the company worth $271,238,000.
• Steel Dynamics reported quarterly earnings of $2.01 per share, missing consensus estimates and showing a 1.5% decline in revenue compared to the same quarter last year.
• The company declared a quarterly dividend of $0.50 per share, translating to an annualized yield of 1.4% with a payout ratio of 29.15%.

Nordea Investment Management AB increased its position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 43.3% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 2,088,372 shares of the basic materials company's stock after acquiring an additional 630,935 shares during the period. Nordea Investment Management AB owned about 1.41% of Steel Dynamics worth $271,238,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in STLD. Farther Finance Advisors LLC raised its holdings in Steel Dynamics by 10.4% in the 1st quarter. Farther Finance Advisors LLC now owns 1,535 shares of the basic materials company's stock worth $190,000 after acquiring an additional 145 shares during the last quarter. GAMMA Investing LLC grew its position in Steel Dynamics by 47.9% in the 1st quarter. GAMMA Investing LLC now owns 3,579 shares of the basic materials company's stock worth $448,000 after purchasing an additional 1,159 shares during the period. Wealth Enhancement Advisory Services LLC grew its position in Steel Dynamics by 31.6% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 27,511 shares of the basic materials company's stock worth $3,441,000 after purchasing an additional 6,604 shares during the period. Ritholtz Wealth Management grew its position in Steel Dynamics by 24.4% in the 1st quarter. Ritholtz Wealth Management now owns 6,687 shares of the basic materials company's stock worth $836,000 after purchasing an additional 1,310 shares during the period. Finally, Janney Montgomery Scott LLC bought a new stake in Steel Dynamics in the 1st quarter worth approximately $2,968,000. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Trading Down 2.3%

Shares of STLD stock opened at $142.65 on Friday. Steel Dynamics, Inc. has a 1 year low of $103.17 and a 1 year high of $155.56. The firm has a fifty day moving average price of $135.09 and a 200-day moving average price of $130.44. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.13 and a quick ratio of 1.34. The company has a market cap of $21.00 billion, a price-to-earnings ratio of 20.79, a PEG ratio of 1.19 and a beta of 1.40.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its earnings results on Monday, July 21st. The basic materials company reported $2.01 earnings per share for the quarter, missing analysts' consensus estimates of $2.05 by ($0.04). Steel Dynamics had a net margin of 6.07% and a return on equity of 11.88%. The firm had revenue of $4.57 billion for the quarter, compared to analysts' expectations of $4.82 billion. During the same quarter last year, the firm posted $2.72 EPS. The firm's quarterly revenue was down 1.5% compared to the same quarter last year. As a group, equities analysts predict that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 10th. Investors of record on Tuesday, September 30th were paid a dividend of $0.50 per share. The ex-dividend date was Tuesday, September 30th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. Steel Dynamics's payout ratio is 29.15%.

Insider Buying and Selling at Steel Dynamics

In related news, SVP Christopher A. Graham sold 12,000 shares of Steel Dynamics stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $126.71, for a total transaction of $1,520,520.00. Following the transaction, the senior vice president owned 66,738 shares in the company, valued at approximately $8,456,371.98. The trade was a 15.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 6.30% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on STLD shares. Wells Fargo & Company lifted their target price on shares of Steel Dynamics from $143.00 to $150.00 and gave the stock an "overweight" rating in a research report on Monday, September 15th. JPMorgan Chase & Co. lifted their target price on shares of Steel Dynamics from $150.00 to $160.00 and gave the stock a "neutral" rating in a research report on Monday. Morgan Stanley lifted their target price on shares of Steel Dynamics from $140.00 to $145.00 and gave the stock an "overweight" rating in a research report on Friday, June 20th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Steel Dynamics in a research report on Wednesday, October 8th. Eight research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $149.89.

Steel Dynamics Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.

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