Victory Capital Management Inc. Sells 25,806 Shares of Steel Dynamics, Inc. $STLD

Key Points

• Victory Capital Management trimmed its Steel Dynamics stake by 1.2% in the fourth quarter, selling 25,806 shares and still holding about 2.13 million shares valued at roughly $361.2 million.
• Several other institutional investors also changed positions, with Boston Partners sharply increasing its holdings, while institutional ownership overall remains high at 82.41%.
• Steel Dynamics reported quarterly EPS of $2.78, just below estimates, on revenue of $5.20 billion; analysts currently rate the stock Moderate Buy with an average price target of $224.64, and the company also declared a quarterly dividend of $0.53 per share.

Victory Capital Management Inc. lowered its stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 1.2% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 2,131,392 shares of the basic materials company's stock after selling 25,806 shares during the period. Victory Capital Management Inc. owned approximately 1.46% of Steel Dynamics worth $361,164,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of the stock. Boston Partners increased its position in shares of Steel Dynamics by 147.9% in the fourth quarter. Boston Partners now owns 1,793,630 shares of the basic materials company's stock worth $303,970,000 after purchasing an additional 1,070,042 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of Steel Dynamics in the fourth quarter worth $448,000. Korea Investment CORP increased its position in shares of Steel Dynamics by 219.3% in the fourth quarter. Korea Investment CORP now owns 137,116 shares of the basic materials company's stock worth $23,234,000 after purchasing an additional 94,180 shares during the period. Banco Santander S.A. increased its position in shares of Steel Dynamics by 22.7% in the fourth quarter. Banco Santander S.A. now owns 7,020 shares of the basic materials company's stock worth $1,190,000 after purchasing an additional 1,300 shares during the period. Finally, Cohen & Steers Inc. bought a new position in shares of Steel Dynamics in the fourth quarter worth $4,427,000. Institutional investors own 82.41% of the company's stock.

Insider Transactions at Steel Dynamics

In other news, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the sale, the senior vice president directly 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 sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction dated 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 sale, the director directly owned 31,299 shares in the company, valued at $7,038,206.13. The trade was a 13.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 22,125 shares of company stock valued at $5,438,227. Company insiders own 6.60% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. BMO Capital Markets raised their price target on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Morgan Stanley restated an "underperform" rating and issued a $190.00 price target on shares of Steel Dynamics in a research report on Tuesday, March 17th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. Barclays began coverage on Steel Dynamics in a research note on Thursday, May 21st. They issued an "overweight" rating and a $270.00 price objective on the stock. Finally, Weiss Ratings raised Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. One 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 stock. Based on data from MarketBeat, Steel Dynamics presently has an average rating of "Moderate Buy" and an average price target of $224.64.

Steel Dynamics Stock Performance

NASDAQ:STLD opened at $282.76 on Friday. The stock's 50-day simple moving average is $230.74 and its 200 day simple moving average is $196.69. The firm has a market capitalization of $40.92 billion, a PE ratio of 30.24, a price-to-earnings-growth ratio of 0.57 and a beta of 1.50. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. Steel Dynamics, Inc. has a twelve month low of $119.89 and a twelve month high of $285.88.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 EPS for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The firm had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same period in the previous year, the business posted $1.44 earnings per share. The business's revenue for the quarter was up 19.1% compared to the same quarter last year. On average, analysts anticipate that Steel Dynamics, Inc. will post 15.32 EPS for the current fiscal year.

Steel Dynamics Dividend Announcement

The company 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. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Tuesday, June 30th. 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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