Sierra Summit Advisors LLC Increases Stake in Steel Dynamics, Inc. $STLD

Key Points

• Sierra Summit Advisors LLC sharply increased its stake in Steel Dynamics by 1,894.7% in the fourth quarter, bringing its holdings to 62,334 shares worth about $10.6 million.
• Several other institutional investors also boosted or initiated positions, and 82.41% of Steel Dynamics is owned by hedge funds and other institutions.
• Analysts remain mixed overall despite recent bullish revisions: Steel Dynamics has a consensus Hold rating with an average target price of $214.30, while the stock was trading above that level at $228.30 and is up 2.2% in the session.

Sierra Summit Advisors LLC increased its holdings in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 1,894.7% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 62,334 shares of the basic materials company's stock after buying an additional 59,209 shares during the period. Steel Dynamics comprises 1.6% of Sierra Summit Advisors LLC's investment portfolio, making the stock its 24th largest holding. Sierra Summit Advisors LLC's holdings in Steel Dynamics were worth $10,562,000 as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Leonteq Securities AG purchased a new stake in shares of Steel Dynamics in the 4th quarter valued at approximately $336,000. ABN Amro Investment Solutions increased its position in shares of Steel Dynamics by 12.7% in the 4th quarter. ABN Amro Investment Solutions now owns 19,779 shares of the basic materials company's stock valued at $3,352,000 after purchasing an additional 2,233 shares during the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in shares of Steel Dynamics in the 4th quarter valued at approximately $6,365,000. PNC Financial Services Group Inc. increased its position in shares of Steel Dynamics by 8.8% in the 4th quarter. PNC Financial Services Group Inc. now owns 27,306 shares of the basic materials company's stock valued at $4,627,000 after purchasing an additional 2,219 shares during the last quarter. Finally, Larson Financial Group LLC increased its position in shares of Steel Dynamics by 28.7% in the 4th quarter. Larson Financial Group LLC now owns 24,498 shares of the basic materials company's stock valued at $4,151,000 after purchasing an additional 5,457 shares during the last quarter. 82.41% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

STLD has been the topic of a number of recent analyst reports. Citigroup increased their price objective on shares of Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research report on Wednesday, April 22nd. Jefferies Financial Group reissued a "buy" rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Weiss Ratings raised shares of Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research report on Wednesday, April 29th. BMO Capital Markets increased their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research report on Wednesday, April 22nd. Finally, JPMorgan Chase & Co. increased their price objective on shares of Steel Dynamics from $192.00 to $205.00 and gave the company a "neutral" rating in a research report on Tuesday, April 14th. Six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $214.30.

Steel Dynamics Trading Up 2.2%

NASDAQ STLD opened at $228.30 on Thursday. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. The firm's fifty day moving average price is $200.47 and its 200 day moving average price is $184.06. The company has a market capitalization of $33.04 billion, a price-to-earnings ratio of 24.42, a price-to-earnings-growth ratio of 0.48 and a beta of 1.48. Steel Dynamics, Inc. has a 12 month low of $119.89 and a 12 month high of $243.73.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results 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). The company had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The company's quarterly revenue was up 19.1% on a year-over-year basis. During the same period last year, the business earned $1.44 earnings per share. On average, sell-side analysts expect that Steel Dynamics, Inc. will post 14.77 earnings per share for the current fiscal year.

Steel Dynamics Announces Dividend

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

Insider Activity at Steel Dynamics

In related news, SVP Miguel Alvarez sold 4,825 shares of the stock in a transaction on Thursday, April 23rd. The shares were 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 $27,578,734.06. This trade represents a 3.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Richard A. Poinsatte sold 2,300 shares of the stock in a transaction 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 transaction, the senior vice president directly owned 28,618 shares in the company, valued at $6,699,759.98. This trade represents a 7.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 12,125 shares of company stock valued at $2,751,227 in the last ninety days. Insiders own 6.60% of the company's stock.

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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