Steel Dynamics, Inc. $STLD Stock Bought by Candriam S.C.A.

Key Points

• Candriam S.C.A. increased its Steel Dynamics stake by 112.4% in the third quarter, adding 16,764 shares to hold 31,678 shares valued at about $7.0 million. Institutional investors collectively own 82.41% of the company.
• Steel Dynamics reported quarterly EPS of $5.26, below the $5.48 analyst consensus, while revenue of $6.51 billion beat expectations and rose 34.8% year over year.
• The company authorized a $3 billion share-repurchase plan, covering up to 8.8% of shares, and announced a quarterly dividend of $0.53 per share.

Candriam S.C.A. increased its holdings in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 112.4% in the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 31,678 shares of the basic materials company's stock after buying an additional 16,764 shares during the quarter. Candriam S.C.A.'s holdings in Steel Dynamics were worth $7,046,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. BlackRock Inc. bought a new position in Steel Dynamics during the 2nd quarter valued at about $2,844,501,000. Bank of America Corp DE purchased a new stake in shares of Steel Dynamics during the 2nd quarter valued at about $264,212,000. Bank of New York Mellon Corp bought a new stake in shares of Steel Dynamics in the second quarter worth approximately $211,159,000. Deutsche Bank AG bought a new stake in shares of Steel Dynamics in the second quarter worth approximately $126,579,000. Finally, Sapient Capital LLC grew its stake in shares of Steel Dynamics by 34.6% in the second 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. Hedge funds and other institutional investors own 82.41% of the company's stock.

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, EVP Barry Schneider sold 50,000 shares of the company's stock in a transaction that occurred on Tuesday, November 3rd. The shares were sold at an average price of $248.91, for a total transaction of $12,445,500.00. Following the completion of the sale, the executive vice president directly owned 196,399 shares of the company's stock, valued at approximately $48,885,675.09. This represents a 20.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 6.60% of the company's stock.

Steel Dynamics Stock Up 2.1%

STLD stock opened at $227.56 on Tuesday. Steel Dynamics, Inc. has a fifty-two week low of $150.22 and a fifty-two week high of $288.74. The business's 50-day moving average is $238.23 and its two-hundred day moving average is $225.13. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.48 and a current ratio of 3.14. The company has a market cap of $32.36 billion, a price-to-earnings ratio of 16.79, a P/E/G ratio of 0.34 and a beta of 1.45.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its earnings results on Monday, October 19th. The basic materials company reported $5.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.48 by ($0.22). The firm had revenue of $6.51 billion during the quarter, compared to analysts' expectations of $6.43 billion. Steel Dynamics had a return on equity of 21.57% and a net margin of 8.82%. The company's revenue for the quarter was up 34.8% on a year-over-year basis. During the same period in the previous year, the business posted $2.74 earnings per share. As a group, analysts forecast that Steel Dynamics, Inc. will post 18.12 earnings per share for the current year.

Steel Dynamics announced that its board has initiated a stock buyback plan on Monday, November 9th that authorizes the company to repurchase $3 billion in outstanding shares. This buyback authorization authorizes the basic materials company to purchase up to 8.8% of its shares through open market purchases. Share buyback plans are generally an indication that the company's board of directors believes its stock is undervalued.

Steel Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 8th. Investors of record on Thursday, December 31st will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.9%. The ex-dividend date is Thursday, December 31st. Steel Dynamics's payout ratio is 15.65%.

Analysts Set New Price Targets

STLD has been the subject of several research reports. Wells Fargo & Company boosted their price objective on shares of Steel Dynamics from $257.00 to $271.00 and gave the company an "overweight" rating in a report on Wednesday, October 21st. Morgan Stanley dropped their target price on shares of Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 22nd. BMO Capital Markets cut their target price on shares of Steel Dynamics from $296.00 to $290.00 and set an "outperform" rating for the company in a research report on Tuesday, September 29th. BNP Paribas Exane lifted their target price on shares of Steel Dynamics from $275.00 to $276.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 21st. Finally, Weiss Ratings upgraded shares of Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, October 28th. Nine analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $275.17.

About Steel Dynamics

Steel Dynamics, Inc is a U.S.-based steel producer and metals recycler founded in 1993. The company operates electric-arc-furnace steel mills and produces flat-rolled, structural, engineered bar, merchant bar and rail products for customers across a range of industries.

Its businesses also include metals recycling, steel fabrication and aluminum operations. Through these activities, Steel Dynamics collects and processes scrap metal, manufactures steel components and supplies products used in construction, automotive manufacturing, energy and other markets.

Headquartered in Fort Wayne, Indiana, the company serves customers primarily in the United States and Mexico.

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