UBS Group AG Reduces Stock Position in Steel Dynamics, Inc. $STLD

Key Points

• UBS Group cut its stake in Steel Dynamics by 30%, selling 130,604 shares and holding 305,333 shares (about 0.21% of the company) valued at roughly $51.74 million at quarter-end.
• Analyst sentiment has strengthened with multiple upgrades and higher price targets (Citigroup $255, BMO $240), yet the consensus across analysts remains mixed (six Buys, four Holds, one Sell) and the average target is $214.30 while the stock trades near $237.
• Steel Dynamics slightly missed quarterly estimates (EPS $2.78 vs $2.79; revenue $5.20B vs $5.39B) despite 19.1% YoY revenue growth, announced a higher quarterly dividend of $0.53, and reported insider sales by senior executives.

UBS Group AG lessened its holdings in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 30.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 305,333 shares of the basic materials company's stock after selling 130,604 shares during the quarter. UBS Group AG owned approximately 0.21% of Steel Dynamics worth $51,739,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Cornerstone Planning Group LLC increased its holdings in Steel Dynamics by 1,636.4% in the third quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company's stock valued at $27,000 after buying an additional 180 shares during the last quarter. Sound Income Strategies LLC increased its holdings in Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock valued at $28,000 after buying an additional 150 shares during the last quarter. Covestor Ltd increased its holdings in Steel Dynamics by 44.3% in the third quarter. Covestor Ltd now owns 303 shares of the basic materials company's stock valued at $42,000 after buying an additional 93 shares during the last quarter. Nvest Wealth Strategies Inc. purchased a new position in shares of Steel Dynamics in the 4th quarter valued at $42,000. Finally, CNB Bank purchased a new position in shares of Steel Dynamics in the 3rd quarter valued at $43,000. Hedge funds and other institutional investors own 82.41% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently commented on STLD. Citigroup increased their target price on shares of Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research report on Wednesday, April 22nd. BMO Capital Markets increased their target price on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research report on Wednesday, April 22nd. Weiss Ratings raised shares of Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research report on Wednesday, April 29th. Wall Street Zen raised shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Six 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. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $214.30.

Steel Dynamics Trading Up 3.3%

Shares of Steel Dynamics stock opened at $237.46 on Wednesday. Steel Dynamics, Inc. has a 1 year low of $119.89 and a 1 year high of $238.74. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13. The company has a market capitalization of $34.24 billion, a P/E ratio of 25.40, a PEG ratio of 0.49 and a beta of 1.48. The company's fifty day moving average is $191.49 and its two-hundred day moving average is $177.85.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data 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). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The business had revenue of $5.20 billion for the quarter, compared to analysts' expectations of $5.39 billion. During the same period in the previous year, the business posted $1.44 earnings per share. The company's revenue for the quarter was up 19.1% on a year-over-year basis. Analysts forecast that Steel Dynamics, Inc. will post 14.77 earnings per share for the current year.

Steel Dynamics Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Tuesday, March 31st were paid a $0.53 dividend. This is an increase from Steel Dynamics's previous quarterly dividend of $0.50. The ex-dividend date was Tuesday, March 31st. This represents a $2.12 annualized dividend and a dividend yield of 0.9%. Steel Dynamics's dividend payout ratio (DPR) is 22.67%.

Insider Activity at Steel Dynamics

In other Steel Dynamics news, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total value of $1,088,423.50. Following the transaction, the senior vice president directly owned 122,257 shares in the company, valued at approximately $27,578,734.06. This trade represents a 3.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total value of $1,124,350.00. Following the completion of the sale, the director directly owned 31,299 shares in the company, valued at $7,038,206.13. This represents a 13.77% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 6.60% of the company's stock.

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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