Steel Dynamics, Inc. (NASDAQ:STLD) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Steel Dynamics “Moderate Buy”: Eight of 12 analysts recommend buying the stock, while four rate it a hold. The average 12-month price target is $259.09, with targets ranging from lowered estimates of $260 to Goldman Sachs’ $300 objective.
• Quarterly results exceeded expectations: Steel Dynamics reported adjusted earnings of $3.69 per share versus the $3.63 consensus estimate, while revenue rose 33.4% year over year to $6.09 billion.
• The company declared a quarterly dividend of $0.53 per share: The payment implies an annualized dividend of $2.12 and a 0.9% yield. Separately, a senior vice president sold 10,000 shares, while institutional investors own 82.41% of the company.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) has received an average recommendation of "Moderate Buy" from the twelve brokerages that are covering the firm, Marketbeat.com reports. Four investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $259.0909.

STLD has been the subject of a number of research analyst reports. Bank of America dropped their target price on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a research report on Thursday, July 9th. The Goldman Sachs Group assumed coverage on shares of Steel Dynamics in a research note on Wednesday, July 29th. They set a "buy" rating and a $300.00 price objective for the company. Weiss Ratings raised shares of Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, June 18th. Morgan Stanley reduced their target price on shares of Steel Dynamics from $270.00 to $260.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 22nd. Finally, Barclays upped their price target on shares of Steel Dynamics from $270.00 to $272.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 22nd.

Insider Activity

In other news, SVP James Stanley Anderson sold 10,000 shares of the 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 completion of 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 6.60% of the company's stock.

Hedge Funds Weigh In On Steel Dynamics

A number of institutional investors and hedge funds have recently bought and sold shares of STLD. Meeder Asset Management Inc. purchased a new stake in shares of Steel Dynamics during the second quarter valued at approximately $26,000. NBH Bank acquired a new position in shares of Steel Dynamics during the second quarter worth $31,000. Prosperity Bancshares Inc purchased a new position in shares of Steel Dynamics in the fourth quarter valued at $25,000. Caitlin John LLC purchased a new position in shares of Steel Dynamics in the second quarter valued at $35,000. Finally, MV Capital Management Inc. acquired a new stake in Steel Dynamics during the 4th quarter valued at $27,000. Hedge funds and other institutional investors own 82.41% of the company's stock.

Steel Dynamics Price Performance

Shares of STLD opened at $228.68 on Monday. The firm has a market cap of $32.78 billion, a PE ratio of 20.73, a price-to-earnings-growth ratio of 0.43 and a beta of 1.52. The company has a quick ratio of 1.45, a current ratio of 3.18 and a debt-to-equity ratio of 0.45. The company's fifty day moving average is $245.06 and its two-hundred day moving average is $222.52. Steel Dynamics has a fifty-two week low of $126.23 and a fifty-two week high of $288.74.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The basic materials company reported $3.69 EPS for the quarter, topping analysts' consensus estimates of $3.63 by $0.06. The company had revenue of $6.09 billion for the quarter, compared to the consensus estimate of $5.56 billion. Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%.The company's quarterly revenue was up 33.4% compared to the same quarter last year. During the same period last year, the business posted $2.01 EPS. Analysts forecast that Steel Dynamics will post 17.16 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be given a $0.53 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $2.12 annualized dividend and a dividend yield of 0.9%. Steel Dynamics's dividend payout ratio is presently 19.22%.

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.

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