Redwood Investment Management LLC Has $1.32 Million Position in Steel Dynamics, Inc. $STLD

Key Points

• Redwood Investment Management LLC reduced its stake in Steel Dynamics, Inc. by 15.7% in the first quarter, holding 10,526 shares valued at approximately $1.32 million as per their latest SEC filing.
• Several hedge funds have also made moves, including Kovitz Investment Group purchasing a new stake valued at $258,000, indicating strong institutional interest in STLD.
• Steel Dynamics announced a $0.50 quarterly dividend, which represents a 1.5% yield, with the ex-dividend date set for September 30th.

Redwood Investment Management LLC decreased its holdings in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 15.7% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 10,526 shares of the basic materials company's stock after selling 1,953 shares during the period. Redwood Investment Management LLC's holdings in Steel Dynamics were worth $1,317,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in STLD. Ritholtz Wealth Management increased its holdings in Steel Dynamics by 24.4% in the first quarter. Ritholtz Wealth Management now owns 6,687 shares of the basic materials company's stock valued at $836,000 after purchasing an additional 1,310 shares during the last quarter. Farther Finance Advisors LLC boosted its holdings in Steel Dynamics by 10.4% during the first quarter. Farther Finance Advisors LLC now owns 1,535 shares of the basic materials company's stock worth $190,000 after buying an additional 145 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its position in shares of Steel Dynamics by 31.6% during 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 buying an additional 6,604 shares during the period. Golden State Wealth Management LLC increased its stake in shares of Steel Dynamics by 124.1% in the 1st quarter. Golden State Wealth Management LLC now owns 948 shares of the basic materials company's stock valued at $119,000 after acquiring an additional 525 shares during the last quarter. Finally, State of Alaska Department of Revenue increased its stake in shares of Steel Dynamics by 2.7% in the 1st quarter. State of Alaska Department of Revenue now owns 16,583 shares of the basic materials company's stock valued at $2,074,000 after acquiring an additional 435 shares during the last quarter. 82.41% of the stock is currently owned by institutional investors.

Steel Dynamics Stock Down 0.5%

STLD stock traded down $0.65 during mid-day trading on Friday, hitting $130.92. 815,070 shares of the company were exchanged, compared to its average volume of 1,255,818. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.34 and a current ratio of 3.13. Steel Dynamics, Inc. has a 1-year low of $103.17 and a 1-year high of $155.56. The firm's 50 day simple moving average is $129.30 and its 200 day simple moving average is $128.26. The firm has a market cap of $19.27 billion, a P/E ratio of 19.08, a P/E/G ratio of 1.06 and a beta of 1.38.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Monday, July 21st. The basic materials company reported $2.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.05 by ($0.04). Steel Dynamics had a return on equity of 11.88% and a net margin of 6.07%.The company had revenue of $4.57 billion for the quarter, compared to the consensus estimate of $4.82 billion. During the same period in the prior year, the company earned $2.72 EPS. The firm's revenue was down 1.5% on a year-over-year basis. On average, sell-side analysts predict that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. Steel Dynamics's dividend payout ratio (DPR) is currently 29.15%.

Insider Activity

In other news, SVP Christopher A. Graham sold 12,000 shares of the business's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $126.71, for a total value of $1,520,520.00. Following the sale, the senior vice president directly owned 66,738 shares in the company, valued at $8,456,371.98. The trade was a 15.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Gabriel Shaheen sold 1,254 shares of the stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $134.11, for a total value of $168,173.94. Following the transaction, the director owned 81,812 shares of the company's stock, valued at approximately $10,971,807.32. The trade was a 1.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 6.30% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently weighed in on STLD shares. JPMorgan Chase & Co. lifted their price objective on shares of Steel Dynamics from $138.00 to $150.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Wells Fargo & Company upgraded shares of Steel Dynamics to a "strong-buy" rating in a report on Thursday, August 14th. Finally, Morgan Stanley boosted their price target on shares of Steel Dynamics from $140.00 to $145.00 and gave the company an "overweight" rating in a report on Friday, June 20th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, Steel Dynamics has a consensus rating of "Moderate Buy" and a consensus price target of $148.70.

About Steel Dynamics

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.