Sustainable Insight Capital Management LLC Makes New Investment in Steel Dynamics, Inc. $STLD

Key Points

• Sustainable Insight Capital Management opened a new position in Steel Dynamics, buying 12,437 shares valued at about $2.1 million in the fourth quarter.
• Institutional ownership remains very high, with hedge funds and large investors holding 82.41% of Steel Dynamics’ shares; several firms added to positions while some insiders sold stock in recent months.
• Analysts are broadly constructive on the stock, with a consensus “Moderate Buy” rating and a target price of $224.64, though some firms have recently raised targets as high as $293.

Sustainable Insight Capital Management LLC purchased a new position in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 12,437 shares of the basic materials company's stock, valued at approximately $2,107,000.

Several other large investors have also made changes to their positions in the company. Capital Research Global Investors boosted its position in shares of Steel Dynamics by 0.3% during the 4th quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company's stock worth $613,926,000 after acquiring an additional 9,959 shares in the last quarter. Life Cycle Investment Partners Ltd acquired a new stake in shares of Steel Dynamics during the 4th quarter worth approximately $586,702,000. Norges Bank acquired a new stake in shares of Steel Dynamics during the 4th quarter worth approximately $564,590,000. Robeco Institutional Asset Management B.V. boosted its position in shares of 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 acquiring an additional 72,122 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its position in shares of Steel Dynamics by 23.5% during the 4th quarter. JPMorgan Chase & Co. now owns 1,308,702 shares of the basic materials company's stock worth $221,760,000 after acquiring an additional 249,442 shares in the last quarter. Institutional investors and hedge funds own 82.41% of the company's stock.

Insider Buying and Selling at Steel Dynamics

In other news, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the completion of the transaction, the senior vice president owned 122,257 shares of the company's stock, valued at approximately $27,578,734.06. This trade represents a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Richard A. Poinsatte sold 2,300 shares of Steel Dynamics stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total transaction of $538,453.00. Following the transaction, the senior vice president directly owned 28,618 shares of the company's stock, valued at $6,699,759.98. This represents a 7.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,125 shares of company stock worth $5,438,227 over the last ninety days. Insiders own 6.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on STLD. Morgan Stanley reiterated an "underperform" rating and set a $190.00 price target on shares of Steel Dynamics in a research report on Tuesday, March 17th. Wall Street Zen upgraded shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Citigroup increased their price target on shares of Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. BMO Capital Markets increased their price target on shares of Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Finally, Wells Fargo & Company increased their price target on shares of Steel Dynamics from $235.00 to $293.00 and gave the stock an "overweight" rating in a research report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $224.64.

Steel Dynamics Price Performance

STLD stock opened at $279.55 on Friday. The company has a fifty day moving average price of $228.75 and a 200-day moving average price of $196.08. The company has a market capitalization of $40.46 billion, a P/E ratio of 29.90, a PEG ratio of 0.57 and a beta of 1.50. Steel Dynamics, Inc. has a 52-week low of $119.89 and a 52-week high of $281.59. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.79 by ($0.01). The business had revenue of $5.20 billion for the quarter, compared to the consensus estimate of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. Steel Dynamics's revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the business posted $1.44 EPS. As a group, equities analysts expect that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. Steel Dynamics's dividend payout ratio (DPR) is presently 22.67%.

Steel Dynamics 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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