United Services Automobile Association Makes New Investment in Steel Dynamics, Inc. $STLD

Key Points

• United Services Automobile Association has acquired a new stake in Steel Dynamics, purchasing 3,152 shares valued at approximately $391,000.
• Steel Dynamics reported a quarterly earnings miss, with earnings per share of $2.01—falling short of the expected $2.05, and a revenue decline of 1.5% year-over-year.
• The company announced a quarterly dividend of $0.50 per share, reflecting an annualized dividend of $2.00 and a yield of 1.5%.

United Services Automobile Association purchased a new stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 3,152 shares of the basic materials company's stock, valued at approximately $391,000.

A number of other institutional investors also recently modified their holdings of the business. Cary Street Partners Investment Advisory LLC increased its holdings in Steel Dynamics by 493.9% during the 1st quarter. Cary Street Partners Investment Advisory LLC now owns 196 shares of the basic materials company's stock worth $25,000 after acquiring an additional 163 shares during the period. Financial Gravity Asset Management Inc. bought a new stake in Steel Dynamics during the 1st quarter worth approximately $25,000. Zions Bancorporation National Association UT bought a new stake in Steel Dynamics during the 1st quarter worth approximately $32,000. WPG Advisers LLC bought a new stake in Steel Dynamics during the 1st quarter worth approximately $32,000. Finally, Grove Bank & Trust increased its holdings in Steel Dynamics by 194.7% during the 1st quarter. Grove Bank & Trust now owns 277 shares of the basic materials company's stock worth $35,000 after acquiring an additional 183 shares during the period. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Price Performance

Shares of NASDAQ:STLD traded up $0.93 during trading on Monday, reaching $131.58. The company had a trading volume of 1,083,210 shares, compared to its average volume of 1,575,828. The company has a fifty day moving average of $129.59 and a two-hundred day moving average of $127.99. The stock has a market capitalization of $19.37 billion, a P/E ratio of 19.18, a price-to-earnings-growth ratio of 1.06 and a beta of 1.40. Steel Dynamics, Inc. has a 12 month low of $103.17 and a 12 month high of $155.56. The company has a current ratio of 3.13, a quick ratio of 1.34 and a debt-to-equity ratio of 0.43.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings results on Monday, July 21st. The basic materials company reported $2.01 EPS for the quarter, missing analysts' consensus estimates of $2.05 by ($0.04). Steel Dynamics had a return on equity of 11.88% and a net margin of 6.07%.The company had revenue of $4.57 billion during the quarter, compared to the consensus estimate of $4.82 billion. During the same period in the previous year, the company earned $2.72 EPS. Steel Dynamics's quarterly revenue was down 1.5% on a year-over-year basis. Equities research analysts forecast that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 30th will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $2.00 annualized dividend and a dividend yield of 1.5%. Steel Dynamics's dividend payout ratio (DPR) is currently 29.15%.

Insider Activity at Steel Dynamics

In related news, SVP Christopher A. Graham sold 12,000 shares of the stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $126.71, for a total transaction of $1,520,520.00. Following the transaction, the senior vice president owned 66,738 shares of the company's stock, valued at approximately $8,456,371.98. This trade represents a 15.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 6.30% of the company's stock.

Wall Street Analysts Forecast Growth

STLD has been the topic of a number of analyst reports. JPMorgan Chase & Co. upped their target price on shares of Steel Dynamics from $138.00 to $150.00 and gave the stock a "neutral" rating in a report on Monday, July 14th. Wells Fargo & Company upped their target price on shares of Steel Dynamics from $143.00 to $150.00 and gave the stock an "overweight" rating in a report on Monday. Finally, Morgan Stanley increased their price target on shares of Steel Dynamics from $140.00 to $145.00 and gave the stock an "overweight" rating in a report on Friday, June 20th. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $149.40.

Steel Dynamics Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.