State Street Corp Has $1.70 Billion Holdings in Steel Dynamics, Inc. $STLD

Key Points

• State Street reduced its Steel Dynamics stake by 1.8%, selling 137,516 shares but retaining 7.38 million shares worth approximately $1.70 billion, or 5.15% of the company. Institutional investors and hedge funds collectively own 82.41% of STLD.
• Analysts maintain a generally positive outlook, with eight Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $258.55. Recent target reductions from several firms contrast with Goldman Sachs’ new Buy rating and $300 target.
• Steel Dynamics beat quarterly earnings expectations with $3.69 in EPS and $6.09 billion in revenue, up 33.4% year over year. The company also declared a $0.53 quarterly dividend, equivalent to a 0.9% yield and a 19.22% payout ratio.

State Street Corp cut its position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 1.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,376,476 shares of the basic materials company's stock after selling 137,516 shares during the quarter. State Street Corp owned about 5.15% of Steel Dynamics worth $1,696,482,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the company. Baird Financial Group Inc. raised its stake in Steel Dynamics by 9.9% in the second quarter. Baird Financial Group Inc. now owns 187,906 shares of the basic materials company's stock valued at $43,117,000 after buying an additional 16,930 shares during the period. Sapient Capital LLC boosted its stake in shares of Steel Dynamics by 34.6% during the 2nd quarter. Sapient Capital LLC now owns 447,664 shares of the basic materials company's stock worth $102,958,000 after acquiring an additional 115,080 shares during the period. BlackRock Inc. bought a new position in shares of Steel Dynamics during the 2nd quarter worth approximately $2,844,501,000. OP Asset Management Ltd acquired a new position in shares of Steel Dynamics during the 1st quarter worth approximately $2,568,000. Finally, First Citizens Bank & Trust Co. acquired a new position in shares of Steel Dynamics during the 1st quarter worth approximately $2,662,000. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on STLD. The Goldman Sachs Group started coverage on Steel Dynamics in a report on Wednesday, July 29th. They set a "buy" rating and a $300.00 price target for the company. JPMorgan Chase & Co. dropped their price objective on shares of Steel Dynamics from $273.00 to $272.00 and set a "neutral" rating on the stock in a research report on Friday, September 18th. Bank of America cut their target price on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a research note on Thursday, July 9th. Morgan Stanley reduced their target price on shares of Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating for the company in a report on Wednesday, July 22nd. Finally, Weiss Ratings lowered shares of Steel Dynamics from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, September 11th. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Steel Dynamics currently has an average rating of "Moderate Buy" and an average price target of $258.55.

Steel Dynamics Stock Performance

Shares of NASDAQ:STLD opened at $233.99 on Wednesday. The company's 50 day simple moving average is $244.00 and its 200 day simple moving average is $229.01. The stock has a market capitalization of $33.54 billion, a price-to-earnings ratio of 21.21, a price-to-earnings-growth ratio of 0.41 and a beta of 1.50. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.18 and a quick ratio of 1.45. Steel Dynamics, Inc. has a 1 year low of $134.87 and a 1 year high of $288.74.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its earnings results on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share for the quarter, topping the consensus estimate of $3.63 by $0.06. Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%.The firm had revenue of $6.09 billion during the quarter, compared to analysts' expectations of $5.56 billion. During the same period in the prior year, the company earned $2.01 earnings per share. The company's quarterly revenue was up 33.4% on a year-over-year basis. As a group, research analysts predict that Steel Dynamics, Inc. will post 18.42 EPS for the current fiscal year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Wednesday, September 30th. Steel Dynamics's payout ratio is currently 19.22%.

Steel Dynamics Profile

Steel Dynamics, Inc is a steel producer and metals recycler headquartered in Fort Wayne, Indiana. Founded in 1993, the company operates electric arc furnaces that use recycled steel and other metallic inputs to manufacture a broad range of steel products. Its customers include companies in the construction, automotive, manufacturing, transportation, energy and appliance industries.

Steel Dynamics' steel operations produce flat-rolled steel, structural steel, rail, engineered bar products and other specialty steel products.

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