Norges Bank Acquires New Holdings in Steel Dynamics, Inc. $STLD

Key Points

• Norges Bank opened a new position in Steel Dynamics during the fourth quarter, buying 3.33 million shares worth about $564.6 million and ending with 2.28% ownership of the company.
• Steel Dynamics recently reported Q1 earnings of $2.78 per share, just below estimates, while revenue came in at $5.20 billion versus the expected $5.39 billion; revenue still rose 19.1% from a year earlier.
• The company declared a quarterly dividend of $0.53 per share and has seen multiple analyst upgrades, with a consensus rating of Moderate Buy and an average price target of $219.36.

Norges Bank acquired a new stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 3,331,896 shares of the basic materials company's stock, valued at approximately $564,590,000. Norges Bank owned 2.28% of Steel Dynamics at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Mediolanum International Funds Ltd raised its holdings in Steel Dynamics by 157.2% in the 3rd quarter. Mediolanum International Funds Ltd now owns 206,140 shares of the basic materials company's stock valued at $28,629,000 after buying an additional 125,981 shares during the period. Fisher Asset Management LLC increased its stake in Steel Dynamics by 47.2% during the third quarter. Fisher Asset Management LLC now owns 34,878 shares of the basic materials company's stock worth $4,863,000 after purchasing an additional 11,183 shares during the period. Strs Ohio increased its stake in Steel Dynamics by 7.3% during the fourth quarter. Strs Ohio now owns 153,878 shares of the basic materials company's stock worth $26,075,000 after purchasing an additional 10,519 shares during the period. Concentric Capital Strategies LP purchased a new stake in Steel Dynamics during the third quarter worth about $24,349,000. Finally, Lansforsakringar Fondforvaltning AB publ increased its stake in Steel Dynamics by 16.4% during the third quarter. Lansforsakringar Fondforvaltning AB publ now owns 47,912 shares of the basic materials company's stock worth $6,680,000 after purchasing an additional 6,738 shares during the period. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Stock Performance

Shares of Steel Dynamics stock opened at $260.15 on Monday. Steel Dynamics, Inc. has a one year low of $119.89 and a one year high of $263.09. The company has a market cap of $37.65 billion, a PE 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. The business has a 50-day simple moving average of $210.75 and a 200-day simple moving average of $188.75.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 EPS for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The company had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same period in the prior year, the firm posted $1.44 earnings per share. The business's quarterly revenue was up 19.1% compared to the same quarter last year. On average, equities research analysts forecast that Steel Dynamics, Inc. will post 14.77 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

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 given 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 payout ratio is currently 22.67%.

Analysts Set New Price Targets

STLD has been the topic of a number of recent research reports. Jefferies Financial Group reiterated a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. Wells Fargo & Company boosted their price target on shares of Steel Dynamics from $207.00 to $235.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded shares of Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. Citigroup boosted their price target on shares of Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. Finally, Wall Street Zen upgraded shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $219.36.

Insider Transactions at Steel Dynamics

In other news, Director Kenneth W. Cornew sold 5,000 shares of the business's stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the completion of the transaction, the director directly owned 31,299 shares of the company's stock, valued at approximately $7,038,206.13. The trade was a 13.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Miguel Alvarez sold 4,825 shares of the business's stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total value of $1,088,423.50. Following the transaction, the senior vice president directly owned 122,257 shares of the company's stock, valued at approximately $27,578,734.06. This represents a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 12,125 shares of company stock valued at $2,751,227. 6.60% of the stock is currently owned by corporate insiders.

About Steel Dynamics

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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