Wolverine Asset Management LLC Invests $1.02 Million in Steel Dynamics, Inc. $STLD

Key Points

• Wolverine Asset Management opened a new position in Steel Dynamics (NASDAQ:STLD) in Q4, buying 6,000 shares valued at about $1.02 million, and institutional investors now own roughly 82.41% of the stock.
• Insider sales occurred on April 23: SVP Miguel Alvarez sold 4,825 shares and Director Kenneth W. Cornew sold 5,000 shares, and insiders currently own about 6.60% of the company.
• Steel Dynamics narrowly missed quarterly estimates (EPS $2.78 vs. $2.79; revenue $5.20B vs. $5.39B) despite 19.1% YoY revenue growth, and raised its quarterly dividend to $0.53 (annualized $2.12, ~0.9% yield).

Wolverine Asset Management LLC acquired a new position in Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The firm acquired 6,000 shares of the basic materials company's stock, valued at approximately $1,017,000.

Other large investors also recently modified their holdings of the company. Lingohr Asset Management GmbH raised its holdings in shares of Steel Dynamics by 1,284.8% in the 3rd quarter. Lingohr Asset Management GmbH now owns 40,423 shares of the basic materials company's stock worth $5,636,000 after purchasing an additional 37,504 shares during the period. Rakuten Investment Management Inc. purchased a new position in shares of Steel Dynamics in the 3rd quarter valued at $8,592,000. Forvis Mazars Wealth Advisors LLC purchased a new position in shares of Steel Dynamics in the 3rd quarter valued at $1,047,000. Mediolanum International Funds Ltd raised its stake in shares of Steel Dynamics by 157.2% in the 3rd quarter. Mediolanum International Funds Ltd now owns 206,140 shares of the basic materials company's stock valued at $28,629,000 after acquiring an additional 125,981 shares during the period. Finally, Knights of Columbus Asset Advisors LLC raised its stake in shares of Steel Dynamics by 156.3% in the 3rd quarter. Knights of Columbus Asset Advisors LLC now owns 15,935 shares of the basic materials company's stock valued at $2,222,000 after acquiring an additional 9,717 shares during the period. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, SVP Miguel Alvarez sold 4,825 shares of the business's 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 completion of the sale, the senior vice president directly owned 122,257 shares in the company, valued at approximately $27,578,734.06. The trade was a 3.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of the business's 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 owned 31,299 shares of the company's stock, valued at $7,038,206.13. This trade represents a 13.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 6.60% of the stock is currently owned by insiders.

Steel Dynamics Price Performance

STLD opened at $237.46 on Wednesday. The company has a 50-day moving average of $191.49 and a 200-day moving average of $177.85. 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. 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.

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

Steel Dynamics Increases Dividend

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

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on STLD shares. Citigroup raised their target price on shares of Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Bank of America downgraded Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 target price on the stock. in a report on Thursday, April 30th. KeyCorp lifted their price target on shares of Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. JPMorgan Chase & Co. lifted their price target on shares of Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 14th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. Six 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 stock. According to data from MarketBeat, Steel Dynamics presently has a consensus rating of "Hold" and a consensus target price of $214.30.

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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