Steel Dynamics, Inc. $STLD Stake Lifted by Dorsey Wright & Associates

Key Points

• Dorsey Wright & Associates boosted its stake in Steel Dynamics by 321.8% in the first quarter, ending with 6,643 shares valued at about $1.2 million.
• Steel Dynamics reported Q1 EPS of $2.78, slightly below expectations, while revenue of $5.20 billion also missed estimates but still rose 19.1% year over year.
• The company paid a quarterly dividend of $0.53 per share and has seen mixed insider activity, with several executives selling shares in recent months.

Dorsey Wright & Associates lifted its stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 321.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 6,643 shares of the basic materials company's stock after acquiring an additional 5,068 shares during the quarter. Dorsey Wright & Associates' holdings in Steel Dynamics were worth $1,196,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Prosperity Bancshares Inc acquired a new position in shares of Steel Dynamics during the 4th quarter valued at $25,000. MV Capital Management Inc. bought a new stake in shares of Steel Dynamics in the 4th quarter worth $27,000. Sound Income Strategies LLC lifted its holdings in shares of Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock valued at $28,000 after buying an additional 150 shares during the period. Cedar Mountain Advisors LLC acquired a new stake in shares of Steel Dynamics in the first quarter valued at $31,000. Finally, DV Equities LLC bought a new position in Steel Dynamics during the fourth quarter valued at about $33,000. Institutional investors own 82.41% of the company's stock.

Steel Dynamics Stock Up 0.2%

Shares of Steel Dynamics stock opened at $235.51 on Friday. The stock's fifty day moving average is $245.95 and its 200-day moving average is $208.80. The firm has a market capitalization of $34.08 billion, a PE ratio of 25.19, a price-to-earnings-growth ratio of 0.44 and a beta of 1.53. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. Steel Dynamics, Inc. has a 12-month low of $119.89 and a 12-month high of $288.74.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 EPS for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The company had revenue of $5.20 billion for the quarter, compared to analysts' expectations of $5.39 billion. During the same period in the prior year, the company earned $1.44 earnings per share. The company's revenue for the quarter was up 19.1% on a year-over-year basis. Equities analysts anticipate that Steel Dynamics, Inc. will post 16.92 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were paid a dividend of $0.53 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. Steel Dynamics's dividend payout ratio is currently 22.67%.

Insider Activity

In other news, SVP James Stanley Anderson sold 10,000 shares of Steel Dynamics stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $268.70, for a total value of $2,687,000.00. Following the transaction, the senior vice president directly owned 102,837 shares of the company's stock, valued at $27,632,301.90. This trade represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction that occurred 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 owned 28,618 shares in the company, valued at $6,699,759.98. This represents a 7.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 22,125 shares of company stock valued at $5,438,226 over the last ninety days. Corporate insiders own 6.60% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Weiss Ratings raised Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 18th. Citigroup lifted their price objective on shares of Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. Bank of America lowered their price objective on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating on the stock in a research note on Thursday, July 9th. Wells Fargo & Company dropped their target price on shares of Steel Dynamics from $293.00 to $291.00 and set an "overweight" rating on the stock in a report on Thursday, June 18th. Finally, Wall Street Zen raised shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $239.18.

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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