KeyCorp Forecasts Strong Price Appreciation for Steel Dynamics (NASDAQ:STLD) Stock

Key Points

• KeyCorp raised its price target on Steel Dynamics from $190 to $241 and kept an "overweight" rating, implying about a 7.9% upside from the current price, while the MarketBeat consensus remains lower at roughly $190.78 with an average "Hold" rating.
• Q1 results showed a tiny EPS miss ($2.78 vs. $2.79) and revenue below estimates ($5.20B vs. $5.39B), but revenue was up 19.1% YoY with margin support from higher steel prices and record shipments, partly offset by weakness in the aluminum business.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its price objective boosted by equities researchers at KeyCorp from $190.00 to $241.00 in a report released on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the basic materials company's stock. KeyCorp's price target points to a potential upside of 7.89% from the company's current price.

A number of other research analysts also recently commented on STLD. Jefferies Financial Group reissued a "buy" rating on shares of Steel Dynamics in a report on Tuesday, March 17th. Wall Street Zen raised Steel Dynamics from a "hold" rating to a "buy" rating in a report on Saturday. Morgan Stanley reiterated an "underperform" rating and issued a $190.00 target price on shares of Steel Dynamics in a research report on Tuesday, March 17th. Weiss Ratings reissued a "hold (c+)" rating on shares of Steel Dynamics in a research report on Monday, December 29th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a report on Tuesday, April 14th. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Steel Dynamics currently has an average rating of "Hold" and a consensus price target of $190.78.

Steel Dynamics Stock Performance

Steel Dynamics stock opened at $223.38 on Wednesday. The stock has a fifty day moving average price of $186.20 and a 200 day moving average price of $173.18. The company has a current ratio of 3.06, a quick ratio of 1.29 and a debt-to-equity ratio of 0.48. Steel Dynamics has a 52 week low of $119.50 and a 52 week high of $226.00. The firm has a market capitalization of $32.33 billion, a P/E ratio of 24.03, a PEG ratio of 0.56 and a beta of 1.39.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The basic materials company reported $2.78 EPS for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). The company had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.64%. The company's revenue was up 19.1% compared to the same quarter last year. During the same period in the prior year, the company earned $1.44 EPS. Equities research analysts anticipate that Steel Dynamics will post 14.04 earnings per share for the current year.

Hedge Funds Weigh In On Steel Dynamics

Several hedge funds and other institutional investors have recently modified their holdings of STLD. Life Cycle Investment Partners Ltd bought a new stake in Steel Dynamics during the 4th quarter valued at $586,702,000. Norges Bank acquired a new stake in Steel Dynamics in the fourth quarter worth about $564,590,000. Boston Partners grew its position in Steel Dynamics by 147.9% in the 4th quarter. Boston Partners now owns 1,793,630 shares of the basic materials company's stock valued at $303,970,000 after buying an additional 1,070,042 shares in the last quarter. Hsbc Holdings PLC increased its stake in Steel Dynamics by 92.4% during the 4th quarter. Hsbc Holdings PLC now owns 1,030,448 shares of the basic materials company's stock valued at $174,609,000 after buying an additional 494,828 shares during the period. Finally, Qube Research & Technologies Ltd bought a new stake in shares of Steel Dynamics during the 2nd quarter worth about $48,746,000. Institutional investors and hedge funds own 82.41% of the company's stock.

Key Headlines Impacting Steel Dynamics

Here are the key news stories impacting Steel Dynamics this week:

• Positive Sentiment: Higher pricing and demand boosted profits — Q1 operating results showed higher steel prices and robust demand that lifted quarterly profit, underpinning margin strength. Read More.
• Positive Sentiment: Record steel shipments and revenue strength in some reports — Management highlighted record steel shipments and some outlets reported revenue beats, supporting the view of sustained demand for flat-rolled steel. Read More.
• Positive Sentiment: Tariff tailwinds improving margins — Analysts and commentators flagged that U.S. tariffs helped mix and pricing in Q1, a structural benefit that management said strengthened in the quarter. Read More.
• Neutral Sentiment: Earnings-call details available — The full Q1 earnings call transcript and slide deck are out; investors can review management’s commentary on demand trends, pricing, and capital allocation. Read More.
• Neutral Sentiment: Momentum interest from investors and analysts — Momentum-focused write-ups and some bullish analyst notes/price-target actions ahead of the print helped buying into the release. Read More.
• Negative Sentiment: Tiny EPS miss and mixed revenue reporting — Reported EPS missed consensus by $0.01; some outlets flag revenue and cash-flow nuances (and a weaker cash position noted by Zacks), which investors will watch for sustainability. Read More.
• Negative Sentiment: Aluminum business drag mentioned on the call — Management said aluminum results lagged and partially offset steel strength this quarter, a short-term headwind for consolidated margins. Read More.

About Steel Dynamics

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.