Sumitomo Mitsui Trust Group Inc. Decreases Stock Position in Steel Dynamics, Inc. $STLD

Key Points

• Sumitomo Mitsui Trust Group trimmed its stake in Steel Dynamics by 2.0% in Q4 to 331,504 shares (about 0.23% of the company) valued at roughly $56.17 million, while institutional ownership remains high at 82.41% with several large funds adding or initiating positions.
• Q4 results beat EPS estimates ($1.82 vs. $1.72) and showed 14% year-over-year revenue growth to $4.41 billion, although revenue missed analyst expectations; the quarter delivered a 6.52% net margin and 13.56% ROE.
• The company raised its quarterly dividend to $0.53 (annualized $2.12, yield 1.1%), shares trade around $194 with a $28.09 billion market cap, and analysts are mixed—consensus rating is Hold with a $185.11 price target.

Sumitomo Mitsui Trust Group Inc. reduced its position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 2.0% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 331,504 shares of the basic materials company's stock after selling 6,725 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.23% of Steel Dynamics worth $56,173,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of STLD. Boston Partners purchased a new stake in Steel Dynamics in the third quarter worth $101,254,000. Qube Research & Technologies Ltd bought a new stake in shares of Steel Dynamics in the second quarter valued at approximately $48,746,000. Caisse de depot et placement du Quebec raised its position in shares of Steel Dynamics by 134.9% in the third 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 purchasing an additional 283,300 shares during the period. AQR Capital Management LLC raised its position in shares of Steel Dynamics by 79.1% in the second quarter. AQR Capital Management LLC now owns 627,542 shares of the basic materials company's stock valued at $80,332,000 after purchasing an additional 277,166 shares during the period. Finally, Schonfeld Strategic Advisors LLC raised its position in shares of Steel Dynamics by 6,163.9% in the third quarter. Schonfeld Strategic Advisors LLC now owns 274,861 shares of the basic materials company's stock valued at $38,324,000 after purchasing an additional 270,473 shares during the period. 82.41% of the stock is owned by hedge funds and other institutional investors.

Steel Dynamics Price Performance

Shares of NASDAQ:STLD opened at $194.11 on Thursday. The company has a 50 day moving average of $185.67 and a 200 day moving average of $171.15. The stock has a market cap of $28.09 billion, a P/E ratio of 24.23, a P/E/G ratio of 0.54 and a beta of 1.39. Steel Dynamics, Inc. has a 12 month low of $112.72 and a 12 month high of $208.47. The company has a current ratio of 3.06, a quick ratio of 1.29 and a debt-to-equity ratio of 0.48.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Tuesday, January 27th. The basic materials company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.72 by $0.10. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The company had revenue of $4.41 billion during the quarter, compared to analysts' expectations of $4.62 billion. During the same quarter in the previous year, the company earned $1.36 earnings per share. Steel Dynamics's revenue for the quarter was up 14.0% on a year-over-year basis. As a group, sell-side analysts forecast that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Tuesday, March 31st were paid a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $2.12 dividend on an annualized basis and a yield of 1.1%. This is a boost from Steel Dynamics's previous quarterly dividend of $0.50. Steel Dynamics's dividend payout ratio is presently 26.47%.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the stock. JPMorgan Chase & Co. boosted their price target on shares of Steel Dynamics from $192.00 to $205.00 and gave the company a "neutral" rating in a research report on Tuesday. Morgan Stanley reissued an "underperform" rating and issued a $190.00 price target on shares of Steel Dynamics in a research report on Tuesday, March 17th. Wells Fargo & Company reissued an "overweight" rating and issued a $207.00 price target on shares of Steel Dynamics in a research report on Wednesday. KeyCorp assumed coverage on shares of Steel Dynamics in a research report on Wednesday, March 25th. They issued an "overweight" rating and a $190.00 price target on the stock. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Steel Dynamics presently has a consensus rating of "Hold" and a consensus price target of $185.11.

Steel Dynamics Company 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.

Want to see what other hedge funds are holding STLD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Steel Dynamics, Inc. (NASDAQ:STLD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.