Sumitomo Mitsui Trust Group Inc. Sells 13,742 Shares of Steel Dynamics, Inc. $STLD

Key Points

• Sumitomo Mitsui Trust Group cut its Steel Dynamics stake by 4.5% in the third quarter, selling 13,742 shares; it retained 293,653 shares valued at about $65.1 million.
• Steel Dynamics reported quarterly EPS of $5.26, below the $5.48 consensus, while revenue of $6.51 billion topped expectations and rose 34.8% year over year.
• Analyst sentiment remained positive overall: nine analysts rated the stock Buy and four Hold, for a “Moderate Buy” consensus and an average price target of $275.17.

Sumitomo Mitsui Trust Group Inc. cut its holdings in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 4.5% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 293,653 shares of the basic materials company's stock after selling 13,742 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned 0.20% of Steel Dynamics worth $65,076,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the business. BlackRock Inc. purchased a new position in Steel Dynamics during the second quarter valued at approximately $2,844,501,000. Bank of America Corp DE purchased a new stake in Steel Dynamics in the 2nd quarter worth approximately $264,212,000. Bank of New York Mellon Corp purchased a new stake in Steel Dynamics in the 2nd quarter worth approximately $211,159,000. Deutsche Bank AG purchased a new stake in Steel Dynamics in the 2nd quarter worth approximately $126,579,000. Finally, Bessemer Group Inc. grew its stake in shares of Steel Dynamics by 56,088.1% during the 1st quarter. Bessemer Group Inc. now owns 542,215 shares of the basic materials company's stock worth $97,598,000 after purchasing an additional 541,250 shares during the period. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Bank of America decreased their price objective on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a research report on Thursday, July 9th. Barclays set a $280.00 target price on Steel Dynamics in a research report on Friday, October 23rd. The Goldman Sachs Group restated a "buy" rating and set a $299.00 target price (down from $301.00) on shares of Steel Dynamics in a research report on Tuesday, October 20th. BMO Capital Markets cut their price target on Steel Dynamics from $296.00 to $290.00 and set an "outperform" rating for the company in a research note on Tuesday, September 29th. Finally, Wells Fargo & Company upped their price target on Steel Dynamics from $257.00 to $271.00 and gave the stock an "overweight" rating in a report on Wednesday, October 21st. Nine research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $275.17.

Steel Dynamics Price Performance

Shares of STLD stock opened at $247.66 on Wednesday. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.14 and a quick ratio of 1.48. The firm's 50-day moving average is $238.73 and its two-hundred day moving average is $224.07. Steel Dynamics, Inc. has a 12 month low of $150.03 and a 12 month high of $288.74. The company has a market capitalization of $35.22 billion, a PE ratio of 18.28, a price-to-earnings-growth ratio of 0.36 and a beta of 1.45.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings results on Monday, October 19th. The basic materials company reported $5.26 earnings per share for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $6.43 billion. During the same quarter in the prior year, the company posted $2.74 earnings per share. The business's revenue for the quarter was up 34.8% compared to the same quarter last year. Analysts predict that Steel Dynamics, Inc. will post 18.12 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th were issued a dividend of $0.53 per share. The ex-dividend date was Wednesday, September 30th. This represents a $2.12 annualized dividend and a yield of 0.9%. Steel Dynamics's dividend payout ratio is 15.65%.

Steel Dynamics Profile

Steel Dynamics, Inc is a steel producer and metals recycler headquartered in Fort Wayne, Indiana. The company manufactures steel products using electric arc furnace technology and serves customers across industries such as construction, automotive, manufacturing, and energy.

Its operations include the production of flat rolled steel, long steel products, structural steel, rail, and specialty products. Steel Dynamics also provides steel processing and fabrication services, including the manufacture of steel joists, deck systems, and other components used in commercial and industrial construction.

The company operates metals recycling facilities that collect, process, and supply ferrous and nonferrous scrap to support its steelmaking operations.

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