Sustainable Insight Capital Management LLC Grows Position in Steel Dynamics, Inc. $STLD

Key Points

• Sustainable Insight Capital Management increased its stake in Steel Dynamics by 86.8% in the first quarter, bringing its holdings to 23,237 shares valued at about $4.18 million.
• Steel Dynamics reported strong quarterly results, posting EPS of $3.69 versus estimates of $3.63 and revenue of $6.09 billion, which topped expectations and was up 33.4% year over year.
• The company also paid a quarterly dividend of $0.53 per share, and analysts remain broadly positive with a Moderate Buy consensus and an average price target of $237.36.

Sustainable Insight Capital Management LLC boosted its position in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 86.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 23,237 shares of the basic materials company's stock after buying an additional 10,800 shares during the period. Steel Dynamics accounts for approximately 1.4% of Sustainable Insight Capital Management LLC's portfolio, making the stock its 21st biggest holding. Sustainable Insight Capital Management LLC's holdings in Steel Dynamics were worth $4,183,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in STLD. Strs Ohio boosted its stake in Steel Dynamics by 7.3% during the 4th quarter. Strs Ohio now owns 153,878 shares of the basic materials company's stock worth $26,075,000 after purchasing an additional 10,519 shares during the period. Robeco Institutional Asset Management B.V. grew its position in Steel Dynamics by 3.7% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock worth $340,289,000 after purchasing an additional 72,122 shares during the last quarter. Econ Financial Services Corp acquired a new position in Steel Dynamics in the fourth quarter valued at $1,171,000. Canada Post Corp Registered Pension Plan increased its stake in Steel Dynamics by 70.5% in the fourth quarter. Canada Post Corp Registered Pension Plan now owns 11,692 shares of the basic materials company's stock valued at $1,981,000 after purchasing an additional 4,835 shares during the period. Finally, Ethic Inc. raised its holdings in shares of Steel Dynamics by 56.5% in the fourth quarter. Ethic Inc. now owns 18,548 shares of the basic materials company's stock valued at $3,143,000 after buying an additional 6,695 shares during the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Steel Dynamics Trading Up 2.7%

NASDAQ STLD opened at $247.11 on Friday. The stock has a market capitalization of $35.76 billion, a P/E ratio of 22.40, a P/E/G ratio of 0.46 and a beta of 1.53. Steel Dynamics, Inc. has a 52-week low of $119.89 and a 52-week high of $288.74. The firm has a 50-day moving average price of $246.36 and a 200 day moving average price of $211.12. The company has a quick ratio of 1.33, a current ratio of 3.18 and a debt-to-equity ratio of 0.45.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly earnings data on Monday, July 20th. The basic materials company reported $3.69 earnings per share for the quarter, beating analysts' consensus estimates of $3.63 by $0.06. Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%.The company had revenue of $6.09 billion for the quarter, compared to analyst estimates of $5.56 billion. During the same quarter in the previous year, the company earned $2.01 EPS. The firm's revenue for the quarter was up 33.4% compared to the same quarter last year. Equities research analysts expect that Steel Dynamics, Inc. will post 17.09 EPS for the current year.

Steel Dynamics Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were issued 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, June 30th. Steel Dynamics's dividend payout ratio (DPR) is currently 19.22%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Wells Fargo & Company lowered their price target on Steel Dynamics from $291.00 to $275.00 and set an "overweight" rating on the stock in a report on Wednesday. Citigroup increased their price objective on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. Weiss Ratings upgraded Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, June 18th. Barclays boosted their target price on Steel Dynamics from $270.00 to $272.00 and gave the company an "overweight" rating in a report on Wednesday. Finally, JPMorgan Chase & Co. upped their price target on Steel Dynamics from $256.00 to $260.00 and gave the stock a "neutral" rating in a research note on Wednesday. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $237.36.

Insider Buying and Selling

In other Steel Dynamics news, SVP James Stanley Anderson sold 10,000 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total value of $2,687,000.00. Following the completion of the transaction, the senior vice president owned 102,837 shares in the company, valued at approximately $27,632,301.90. This represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Richard A. Poinsatte sold 2,300 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total value of $538,453.00. Following the completion of the sale, the senior vice president directly owned 28,618 shares of the company's stock, valued at approximately $6,699,759.98. This trade represents a 7.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 6.60% of the stock is owned by insiders.

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.

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