Steel Dynamics, Inc. $STLD Shares Purchased by Allstate Corp

Key Points

• Allstate Corp more than doubled its stake in Steel Dynamics during the fourth quarter, increasing its holdings by 105.1% to 8,889 shares valued at about $1.51 million.
• Wall Street sentiment is mixed but generally positive: Steel Dynamics has an average Moderate Buy rating with an average price target of $219.36, though some firms have recently downgraded or kept cautious views.
• The company reported record-like strength in revenue growth year over year, but its latest quarterly EPS and revenue both came in slightly below analyst expectations; it also announced a quarterly dividend of $0.53 per share.

Allstate Corp increased its stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 105.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,889 shares of the basic materials company's stock after acquiring an additional 4,554 shares during the quarter. Allstate Corp's holdings in Steel Dynamics were worth $1,506,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Optas LLC raised its stake in Steel Dynamics by 3.0% during the 4th quarter. Optas LLC now owns 1,979 shares of the basic materials company's stock worth $335,000 after acquiring an additional 58 shares in the last quarter. Wright Investors Service Inc. increased its stake in Steel Dynamics by 1.2% in the fourth quarter. Wright Investors Service Inc. now owns 5,555 shares of the basic materials company's stock valued at $941,000 after purchasing an additional 64 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in Steel Dynamics by 4.1% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the basic materials company's stock valued at $246,000 after purchasing an additional 70 shares during the period. Choreo LLC increased its stake in shares of Steel Dynamics by 3.3% during the third quarter. Choreo LLC now owns 2,521 shares of the basic materials company's stock worth $353,000 after acquiring an additional 80 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC increased its stake in shares of Steel Dynamics by 2.4% during the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 3,468 shares of the basic materials company's stock worth $484,000 after acquiring an additional 80 shares during the period. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on STLD shares. JPMorgan Chase & Co. boosted their price target on shares of Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 14th. Morgan Stanley reiterated an "underperform" rating and set a $190.00 price target on shares of Steel Dynamics in a research note on Tuesday, March 17th. Bank of America downgraded shares of Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 price objective on the stock. in a report on Thursday, April 30th. Weiss Ratings raised shares of Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a report on Wednesday, April 29th. Finally, BMO Capital Markets boosted their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $219.36.

Steel Dynamics Stock Performance

NASDAQ:STLD opened at $260.15 on Friday. 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 company has a market cap of $37.65 billion, a P/E ratio of 27.82, a P/E/G ratio of 0.55 and a beta of 1.48. Steel Dynamics, Inc. has a fifty-two week low of $119.89 and a fifty-two week high of $263.09. The firm's 50 day moving average is $210.75 and its two-hundred day moving average is $188.49.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The business had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same period in the previous year, the company earned $1.44 EPS. Steel Dynamics's revenue was up 19.1% on a year-over-year basis. Analysts expect that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's dividend payout ratio (DPR) is presently 22.67%.

Insider Activity at Steel Dynamics

In related news, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the completion of the sale, the senior vice president directly owned 122,257 shares of the company's stock, valued at approximately $27,578,734.06. This trade represents a 3.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Richard A. Poinsatte sold 2,300 shares of the firm's 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 sale, the senior vice president directly owned 28,618 shares of the company's stock, valued at approximately $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 12,125 shares of company stock valued at $2,751,227. Corporate 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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