Steel Dynamics, Inc. $STLD Stake Lowered by Vanguard Group Inc.

Key Points

• Vanguard Group trimmed its stake in Steel Dynamics by 0.8% to 17,021,248 shares (11.66% ownership), and institutional investors now hold about 82.41% of the stock.
• Several analysts raised price targets (some as high as $255), but the MarketBeat consensus remains a Hold with an average target of $210.33.
• Q1 results showed EPS of $2.78 (missed by $0.01) and revenue of $5.20B (below estimates) despite 19.1% YoY revenue growth, and the company raised its quarterly dividend to $0.53 ($2.12 annualized).

Vanguard Group Inc. reduced its stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 0.8% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 17,021,248 shares of the basic materials company's stock after selling 137,907 shares during the period. Vanguard Group Inc. owned 11.66% of Steel Dynamics worth $2,884,250,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of STLD. Boston Partners purchased a new position in shares of Steel Dynamics during the 3rd quarter valued at $101,254,000. Qube Research & Technologies Ltd purchased a new position in shares of Steel Dynamics during the 2nd quarter valued at $48,746,000. Caisse de depot et placement du Quebec grew its holdings in shares of Steel Dynamics by 134.9% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 493,290 shares of the basic materials company's stock valued at $68,779,000 after acquiring an additional 283,300 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Steel Dynamics by 79.1% during the 2nd quarter. AQR Capital Management LLC now owns 627,542 shares of the basic materials company's stock valued at $80,332,000 after acquiring an additional 277,166 shares in the last quarter. Finally, Schonfeld Strategic Advisors LLC grew its holdings in shares of Steel Dynamics by 6,163.9% during the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 274,861 shares of the basic materials company's stock valued at $38,324,000 after acquiring an additional 270,473 shares in the last quarter. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. BMO Capital Markets boosted their price target on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Wells Fargo & Company boosted their price target on shares of Steel Dynamics from $207.00 to $235.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Citigroup boosted their price target on shares of Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd. JPMorgan Chase & Co. lifted their price objective on shares of Steel Dynamics from $192.00 to $205.00 and gave the company a "neutral" rating in a research note on Tuesday, April 14th. 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. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $210.33.

Insider Buying and Selling at Steel Dynamics

In related news, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics 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 owned 122,257 shares in the company, valued at $27,578,734.06. This trade represents a 3.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the completion of the transaction, the director owned 31,299 shares in the company, valued at $7,038,206.13. This trade represents a 13.77% decrease in their position. The SEC filing for this sale provides additional information. 6.60% of the stock is currently owned by insiders.

Steel Dynamics Stock Up 0.9%

STLD stock opened at $226.96 on Wednesday. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. Steel Dynamics, Inc. has a 1 year low of $119.89 and a 1 year high of $229.00. The company has a fifty day simple moving average of $189.22 and a 200 day simple moving average of $176.08. The firm has a market cap of $32.85 billion, a PE ratio of 24.27, a PEG ratio of 0.57 and a beta of 1.39.

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 net margin of 7.22% and a return on equity of 15.54%. 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 firm posted $1.44 EPS. The firm's revenue for the quarter was up 19.1% on a year-over-year basis. Sell-side analysts anticipate that Steel Dynamics, Inc. will post 14.34 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Tuesday, March 31st were paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, March 31st. This is a boost from Steel Dynamics's previous quarterly dividend of $0.50. Steel Dynamics's dividend payout ratio (DPR) is presently 22.67%.

Steel Dynamics Profile

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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