Paradiem LLC Trims Holdings in Steel Dynamics, Inc. $STLD

Key Points

• Paradiem LLC reduced its stake in Steel Dynamics by 18.6% in Q1, selling 16,664 shares and ending with 72,921 shares valued at about $13.1 million.
• Insider selling continued, with SVP James Stanley Anderson and SVP Richard A. Poinsatte both trimming their holdings; insiders have sold 22,125 shares over the last 90 days.
• Analysts remain mixed but generally constructive on STLD, with a consensus rating of Moderate Buy and an average target price of $234.55, while the stock recently traded at $228.42 and the company reported quarterly EPS and revenue slightly below estimates.

Paradiem LLC lowered its stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 18.6% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 72,921 shares of the basic materials company's stock after selling 16,664 shares during the quarter. Steel Dynamics makes up about 2.9% of Paradiem LLC's investment portfolio, making the stock its 15th largest holding. Paradiem LLC owned approximately 0.05% of Steel Dynamics worth $13,126,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Life Cycle Investment Partners Ltd acquired a new position in Steel Dynamics during the 4th quarter worth $586,702,000. Norges Bank acquired a new stake in shares of Steel Dynamics in the 4th quarter valued at about $564,590,000. Boston Partners raised its stake in shares of Steel Dynamics by 147.9% in the 4th quarter. Boston Partners now owns 1,793,630 shares of the basic materials company's stock valued at $303,970,000 after purchasing an additional 1,070,042 shares in the last quarter. Hsbc Holdings PLC lifted its position in shares of Steel Dynamics by 92.4% during the fourth quarter. Hsbc Holdings PLC now owns 1,030,448 shares of the basic materials company's stock worth $174,609,000 after purchasing an additional 494,828 shares during the last quarter. Finally, Qube Research & Technologies Ltd bought a new position in shares of Steel Dynamics during the second quarter worth about $48,746,000. Institutional investors own 82.41% of the company's stock.

Insider Buying and Selling

In other news, SVP James Stanley Anderson sold 10,000 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the completion of the transaction, the senior vice president owned 102,837 shares in the company, valued at approximately $27,632,301.90. This represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Richard A. Poinsatte sold 2,300 shares of the stock in a transaction dated Tuesday, May 12th. The stock was 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 directly owned 28,618 shares in the company, valued at approximately $6,699,759.98. This trade represents a 7.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 22,125 shares of company stock valued at $5,438,226. 6.60% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Bank of America lowered their price objective on Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a report on Thursday. Morgan Stanley increased their target price on Steel Dynamics from $227.00 to $270.00 and gave the stock an "equal weight" rating in a report on Monday, June 22nd. JPMorgan Chase & Co. lifted their target price on Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 14th. Citigroup boosted their price target on Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Steel Dynamics has an average rating of "Moderate Buy" and a consensus target price of $234.55.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $228.42 on Monday. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. The business has a 50 day moving average of $246.00 and a two-hundred day moving average of $206.96. Steel Dynamics, Inc. has a 52 week low of $119.89 and a 52 week high of $288.74. The company has a market cap of $33.06 billion, a P/E ratio of 24.43, a PEG ratio of 0.44 and a beta of 1.53.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly 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). The company had revenue of $5.20 billion for the quarter, compared to analyst estimates 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 for the quarter was up 19.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.44 earnings per share. As a group, analysts anticipate that Steel Dynamics, Inc. will post 16.73 EPS for the current year.

Steel Dynamics Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were given a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.12 annualized dividend and a yield of 0.9%. Steel Dynamics's dividend payout ratio (DPR) is currently 22.67%.

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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