Steel Dynamics (NASDAQ:STLD) Shares Gap Up After Better-Than-Expected Earnings

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $134.16, but opened at $141.06. Steel Dynamics shares last traded at $136.22, with a volume of 417,650 shares changing hands.

The basic materials company reported $3.67 earnings per share for the quarter, beating analysts' consensus estimates of $3.54 by $0.13. Steel Dynamics had a net margin of 13.04% and a return on equity of 29.49%. The business had revenue of $4.69 billion during the quarter, compared to analysts' expectations of $4.74 billion. During the same period last year, the business earned $4.01 earnings per share. The business's revenue for the quarter was down 4.1% on a year-over-year basis.

Steel Dynamics Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Sunday, April 14th. Investors of record on Sunday, March 31st were issued a $0.46 dividend. The ex-dividend date was Wednesday, March 27th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.42%. This is a boost from Steel Dynamics's previous quarterly dividend of $0.43. Steel Dynamics's payout ratio is 12.61%.

Analyst Upgrades and Downgrades

STLD has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their price objective on shares of Steel Dynamics from $100.00 to $118.00 and gave the company an "underweight" rating in a report on Tuesday, April 16th. UBS Group decreased their price target on shares of Steel Dynamics from $120.00 to $119.00 and set a "neutral" rating for the company in a research note on Wednesday, January 24th. Citigroup lifted their price target on shares of Steel Dynamics from $130.00 to $160.00 and gave the stock a "buy" rating in a research note on Wednesday, March 13th. Finally, BMO Capital Markets lifted their price target on shares of Steel Dynamics from $110.00 to $120.00 and gave the stock a "market perform" rating in a research note on Monday, March 18th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, Steel Dynamics has an average rating of "Hold" and an average price target of $121.17.

Institutional Trading of Steel Dynamics

Institutional investors have recently modified their holdings of the stock. CWM LLC boosted its stake in Steel Dynamics by 30.4% during the 3rd quarter. CWM LLC now owns 4,069 shares of the basic materials company's stock worth $436,000 after purchasing an additional 948 shares during the period. HB Wealth Management LLC increased its holdings in shares of Steel Dynamics by 16.5% in the 3rd quarter. HB Wealth Management LLC now owns 2,218 shares of the basic materials company's stock valued at $238,000 after purchasing an additional 314 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new position in shares of Steel Dynamics in the 3rd quarter valued at about $206,000. Capital Asset Advisory Services LLC increased its holdings in shares of Steel Dynamics by 13.5% in the 3rd quarter. Capital Asset Advisory Services LLC now owns 2,140 shares of the basic materials company's stock valued at $236,000 after purchasing an additional 254 shares in the last quarter. Finally, IQ EQ FUND MANAGEMENT IRELAND Ltd increased its holdings in shares of Steel Dynamics by 64.1% in the 3rd quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 11,436 shares of the basic materials company's stock valued at $1,226,000 after purchasing an additional 4,465 shares in the last quarter. Hedge funds and other institutional investors own 82.41% of the company's stock.

Steel Dynamics Price Performance

The stock's fifty day moving average price is $136.80 and its 200-day moving average price is $121.97. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.67 and a current ratio of 2.91. The firm has a market cap of $20.52 billion, a PE ratio of 8.90 and a beta of 1.42.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.