Wedge Capital Management L L P NC Reduces Stock Position in Steel Dynamics, Inc. $STLD

Key Points

• Wedge Capital Management cut its stake in Steel Dynamics by 28.6% in Q4, selling 14,862 shares and leaving 37,150 shares worth $6.295 million.
• Quarterly results: Steel Dynamics reported EPS of $1.82 (beating estimates by $0.10) while revenue was $4.41 billion (below expectations), with revenue up 14% year‑over‑year.
• Dividend and analyst view: The company raised its quarterly dividend to $0.53 (from $0.50) with an ex‑dividend date of March 31 (1.2% yield), and the stock carries a consensus "Hold" rating with a $182.44 price target.

Wedge Capital Management L L P NC lessened its stake in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) by 28.6% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 37,150 shares of the basic materials company's stock after selling 14,862 shares during the period. Wedge Capital Management L L P NC's holdings in Steel Dynamics were worth $6,295,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Versant Capital Management Inc grew its stake in shares of Steel Dynamics by 13.2% during the 3rd quarter. Versant Capital Management Inc now owns 548 shares of the basic materials company's stock valued at $76,000 after purchasing an additional 64 shares during the period. Northwestern Mutual Wealth Management Co. increased its holdings in Steel Dynamics by 4.1% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the basic materials company's stock valued at $246,000 after buying an additional 70 shares during the last quarter. Bartlett & CO. Wealth Management LLC boosted its stake in shares of Steel Dynamics by 24.8% during the 3rd quarter. Bartlett & CO. Wealth Management LLC now owns 377 shares of the basic materials company's stock worth $53,000 after acquiring an additional 75 shares during the last quarter. Choreo LLC raised its holdings in Steel Dynamics by 3.3% in the 3rd quarter. Choreo LLC now owns 2,521 shares of the basic materials company's stock worth $353,000 after purchasing an additional 80 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC increased its position in Steel Dynamics by 2.4% in the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 3,468 shares of the basic materials company's stock worth $484,000 after buying an additional 80 shares in the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Steel Dynamics Price Performance

STLD stock opened at $170.97 on Friday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.29 and a current ratio of 3.06. The company's fifty day moving average price is $184.61 and its 200-day moving average price is $166.75. Steel Dynamics, Inc. has a one year low of $103.17 and a one year high of $208.47. The company has a market capitalization of $24.77 billion, a PE ratio of 21.34, a price-to-earnings-growth ratio of 0.47 and a beta of 1.43.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.72 by $0.10. The company had revenue of $4.41 billion during the quarter, compared to analysts' expectations of $4.62 billion. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. Steel Dynamics's quarterly revenue was up 14.0% on a year-over-year basis. During the same period last year, the company posted $1.36 earnings per share. On average, equities analysts anticipate that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st will be given a dividend of $0.53 per share. The ex-dividend date is Tuesday, March 31st. This is a positive change from Steel Dynamics's previous quarterly dividend of $0.50. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.2%. Steel Dynamics's dividend payout ratio (DPR) is 24.97%.

Analyst Ratings Changes

STLD has been the topic of several analyst reports. Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a report on Tuesday, March 17th. KeyCorp began coverage on shares of Steel Dynamics in a research report on Wednesday. They set an "overweight" rating and a $190.00 price objective on the stock. Wall Street Zen cut shares of Steel Dynamics from a "strong-buy" rating to a "buy" rating in a research note on Saturday, March 7th. Morgan Stanley reaffirmed an "underperform" rating and issued a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. Finally, JPMorgan Chase & Co. cut their price target on Steel Dynamics from $194.00 to $192.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $182.44.

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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