Morgan Stanley Increases Steel Dynamics (NASDAQ:STLD) Price Target to $270.00

Key Points

• Morgan Stanley raised its price target on Steel Dynamics from $227 to $270 while keeping an “equal weight” rating. The new target implies about 8% upside from the stock’s current price.
• Other analysts remain mostly positive on STLD, with several firms lifting targets or reiterating buy-style ratings. MarketBeat data shows a consensus rating of Moderate Buy and a consensus price target of $234.45.
• Steel Dynamics recently reported mixed quarterly results, missing EPS and revenue estimates slightly but posting year-over-year revenue growth of 19.1%. The company also saw insider selling, including recent share sales by a director and an SVP.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its target price raised by equities research analysts at Morgan Stanley from $227.00 to $270.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the basic materials company's stock. Morgan Stanley's price objective would suggest a potential upside of 8.04% from the company's current price.

Several other analysts have also weighed in on STLD. Wells Fargo & Company reduced their price objective on Steel Dynamics from $293.00 to $291.00 and set an "overweight" rating on the stock in a research note on Thursday. Weiss Ratings raised shares of Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday. Jefferies Financial Group restated a "buy" rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. BMO Capital Markets lifted their price target on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday, April 22nd. Finally, Citigroup upped their price objective on shares of Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Steel Dynamics presently has a consensus rating of "Moderate Buy" and a consensus price target of $234.45.

Steel Dynamics Price Performance

Shares of STLD opened at $249.91 on Monday. The firm has a 50 day simple moving average of $239.04 and a two-hundred day simple moving average of $200.34. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. Steel Dynamics has a one year low of $119.89 and a one year high of $288.74. The company has a market cap of $36.17 billion, a P/E ratio of 26.73, a P/E/G ratio of 0.52 and a beta of 1.50.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share 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 business had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same period in the prior year, the business posted $1.44 EPS. The company's revenue for the quarter was up 19.1% compared to the same quarter last year. Research analysts forecast that Steel Dynamics will post 15.67 EPS for the current fiscal year.

Insider Transactions at Steel Dynamics

In other news, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the sale, the director directly owned 31,299 shares of the company's stock, valued at approximately $7,038,206.13. This trade represents a 13.77% 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, SVP James Stanley Anderson sold 10,000 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $268.70, for a total value of $2,687,000.00. Following the sale, the senior vice president owned 102,837 shares in the company, valued at approximately $27,632,301.90. This trade represents a 8.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 22,125 shares of company stock valued at $5,438,226 over the last three months. Company insiders own 6.60% of the company's stock.

Hedge Funds Weigh In On Steel Dynamics

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Fisher Asset Management LLC raised its holdings in shares of Steel Dynamics by 47.2% in the 3rd quarter. Fisher Asset Management LLC now owns 34,878 shares of the basic materials company's stock worth $4,863,000 after purchasing an additional 11,183 shares during the period. Strs Ohio grew its holdings in Steel Dynamics by 7.3% during the fourth quarter. Strs Ohio now owns 153,878 shares of the basic materials company's stock valued at $26,075,000 after purchasing an additional 10,519 shares during the period. Concentric Capital Strategies LP purchased a new stake in Steel Dynamics in the third quarter worth $24,349,000. Robeco Institutional Asset Management B.V. increased its position in Steel Dynamics by 3.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock worth $340,289,000 after buying an additional 72,122 shares during the last quarter. Finally, Lansforsakringar Fondforvaltning AB publ raised its stake in shares of Steel Dynamics by 16.4% in the third quarter. Lansforsakringar Fondforvaltning AB publ now owns 47,912 shares of the basic materials company's stock valued at $6,680,000 after buying an additional 6,738 shares during the period. 82.41% of the stock is currently owned by institutional investors and hedge funds.

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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