Steel Dynamics, Inc. $STLD Stock: Kinsale Capital Group Inc. Increases Stake

Key Points

• Kinsale Capital increased its Steel Dynamics stake by 19.9% in the third quarter, to 67,445 shares valued at about $14.9 million. Institutional investors collectively own 82.41% of the company.
• Steel Dynamics reported quarterly EPS of $5.26, below the $5.48 consensus, while revenue rose 34.8% year over year to $6.51 billion. The board also authorized a $3 billion share repurchase program, covering up to 8.8% of shares.
• Analysts have a “Moderate Buy” consensus rating and an average price target of $275.17. Separately, EVP Barry Schneider sold 50,000 shares.

Kinsale Capital Group Inc. lifted its holdings in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 19.9% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 67,445 shares of the basic materials company's stock after purchasing an additional 11,187 shares during the quarter. Steel Dynamics accounts for about 2.0% of Kinsale Capital Group Inc.'s portfolio, making the stock its 17th biggest position. Kinsale Capital Group Inc.'s holdings in Steel Dynamics were worth $14,946,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of STLD. BlackRock Inc. bought a new position in Steel Dynamics in the second quarter valued at approximately $2,844,501,000. Bank of America Corp DE bought a new stake in shares of Steel Dynamics during the second quarter worth $264,212,000. Bank of New York Mellon Corp acquired a new stake in shares of Steel Dynamics during the second quarter worth $211,159,000. Deutsche Bank AG acquired a new stake in shares of Steel Dynamics during the second quarter worth $126,579,000. Finally, Sapient Capital LLC raised its holdings in shares of Steel Dynamics by 34.6% during 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. Institutional investors own 82.41% of the company's stock.

Insider Transactions at Steel Dynamics

In related news, EVP Barry Schneider sold 50,000 shares of the company's stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $248.91, for a total transaction of $12,445,500.00. Following the sale, the executive vice president owned 196,399 shares in the company, valued at approximately $48,885,675.09. This represents a 20.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 6.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. UBS Group boosted their price objective on shares of Steel Dynamics from $165.00 to $276.00 and gave the company a "neutral" rating in a research report on Monday, August 10th. BMO Capital Markets lowered their target price on Steel Dynamics from $296.00 to $290.00 and set an "outperform" rating for the company in a report on Tuesday, September 29th. BNP Paribas Exane lifted their price target on Steel Dynamics from $275.00 to $276.00 and gave the company an "outperform" rating in a research note on Wednesday, October 21st. KeyCorp boosted their price target on Steel Dynamics from $262.00 to $265.00 and gave the company an "overweight" rating in a report on Friday, October 23rd. Finally, JPMorgan Chase & Co. reduced their price objective on Steel Dynamics from $272.00 to $260.00 and set a "neutral" rating for the company in a research report on Friday, October 9th. Nine research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, Steel Dynamics has a consensus rating of "Moderate Buy" and an average price target of $275.17.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $227.56 on Tuesday. The company's fifty day simple moving average is $238.23 and its 200-day simple moving average is $225.13. The company has a quick ratio of 1.48, a current ratio of 3.14 and a debt-to-equity ratio of 0.43. The firm has a market cap of $32.36 billion, a PE ratio of 16.79, a P/E/G ratio of 0.34 and a beta of 1.45. Steel Dynamics, Inc. has a 12 month low of $150.22 and a 12 month high of $288.74.

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

Steel Dynamics declared that its board has authorized a stock buyback program on Monday, November 9th that authorizes the company to buy back $3 billion in outstanding shares. This buyback authorization authorizes the basic materials company to repurchase up to 8.8% of its stock through open market purchases. Share buyback programs are typically a sign that the company's board believes its shares are undervalued.

Steel Dynamics Announces Dividend

The business 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 $0.53 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. Steel Dynamics's payout ratio is currently 15.65%.

Steel Dynamics Profile

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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