Steel Dynamics (NASDAQ:STLD) Stock Crosses Below Two Hundred Day Moving Average Following Insider Selling

Key Points

• Steel Dynamics shares fell below their 200-day moving average, trading as low as $221.27 versus the $224.64 average.
• EVP Barry Schneider sold 50,000 shares for about $12.45 million, reducing his stake by 20.29%.
• Analysts rate the stock a “Moderate Buy” with a $275.17 consensus price target; the latest quarter’s EPS of $5.26 missed expectations, while revenue rose 34.8% year over year.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Thursday after an insider sold shares in the company. The stock has a two hundred day moving average of $224.64 and traded as low as $221.27. Steel Dynamics shares last traded at $221.90, with a volume of 1,848,633 shares traded.

Specifically, EVP Barry Schneider sold 50,000 shares of the company's stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $248.91, for a total transaction of $12,445,500.00. Following the sale, the executive vice president owned 196,399 shares in the company, valued at $48,885,675.09. This represents a 20.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on STLD. JPMorgan Chase & Co. decreased their price objective on Steel Dynamics from $272.00 to $260.00 and set a "neutral" rating for the company in a research note on Friday, October 9th. Wells Fargo & Company upped their target price on shares of Steel Dynamics from $257.00 to $271.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 21st. The Goldman Sachs Group restated a "buy" rating and set a $299.00 target price (down from $301.00) on shares of Steel Dynamics in a research note on Tuesday, October 20th. UBS Group raised their target price on shares of Steel Dynamics from $165.00 to $276.00 and gave the company a "neutral" rating in a report on Monday, August 10th. Finally, BNP Paribas Exane lifted their price target on shares of Steel Dynamics from $275.00 to $276.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 21st. Nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $275.17.

Steel Dynamics Stock Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 3.14 and a quick ratio of 1.48. The company has a market capitalization of $31.56 billion, a price-to-earnings ratio of 16.38, a PEG ratio of 0.34 and a beta of 1.45. The stock has a 50 day simple moving average of $238.63 and a two-hundred day simple moving average of $224.64.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly earnings results on Monday, October 19th. The basic materials company reported $5.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $5.48 by ($0.22). The business had revenue of $6.51 billion for the quarter, compared to analysts' expectations of $6.43 billion. Steel Dynamics had a return on equity of 21.57% and a net margin of 8.82%. The firm's quarterly revenue was up 34.8% on a year-over-year basis. During the same period last year, the firm earned $2.74 earnings per share. As a group, analysts anticipate that Steel Dynamics, Inc. will post 18.12 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Wednesday, September 30th were issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, September 30th. Steel Dynamics's dividend payout ratio is 15.65%.

Hedge Funds Weigh In On Steel Dynamics

Hedge funds have recently added to or reduced their stakes in the stock. Meeder Asset Management Inc. purchased a new stake in Steel Dynamics in the second quarter valued at approximately $26,000. Wealth Enhancement Trust Services Inc. raised its stake in Steel Dynamics by 1,200.0% during the third quarter. Wealth Enhancement Trust Services Inc. now owns 117 shares of the basic materials company's stock worth $26,000 after purchasing an additional 108 shares during the period. Cedar Mountain Advisors LLC purchased a new position in Steel Dynamics during the first quarter worth approximately $31,000. NBH Bank acquired a new position in shares of Steel Dynamics in the 2nd quarter valued at $31,000. Finally, City State Bank acquired a new position in shares of Steel Dynamics in the 3rd quarter valued at $32,000. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

About Steel Dynamics

Steel Dynamics, Inc is a steel producer and metals recycler headquartered in Fort Wayne, Indiana. The company manufactures steel products using electric arc furnace technology and serves customers across industries such as construction, automotive, manufacturing, and energy.

Its operations include the production of flat rolled steel, long steel products, structural steel, rail, and specialty products. Steel Dynamics also provides steel processing and fabrication services, including the manufacture of steel joists, deck systems, and other components used in commercial and industrial construction.

The company operates metals recycling facilities that collect, process, and supply ferrous and nonferrous scrap to support its steelmaking operations.

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