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

Key Points

• Steel Dynamics has a consensus analyst rating of "Moderate Buy" from 12 brokerages, with an average 12-month price target of about $236.36.
• The company recently reported quarterly EPS of $2.78, just below estimates, while revenue of $5.20 billion also missed expectations; however, revenue still rose 19.1% year over year.
• Steel Dynamics announced a quarterly dividend of $0.53 per share, equal to an annualized dividend of $2.12 and a yield of about 1.0%.

Shares of Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twelve brokerages that are currently covering the stock, Marketbeat.com reports. Five investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $236.3636.

A number of equities research analysts have weighed in on STLD shares. BMO Capital Markets boosted their target price on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. JPMorgan Chase & Co. raised their price target on Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 14th. Bank of America cut their price objective on Steel Dynamics from $285.00 to $280.00 and set a "neutral" rating for the company in a report on Thursday, June 18th. Wells Fargo & Company reduced their price objective on Steel Dynamics from $293.00 to $291.00 and set an "overweight" rating for the company in a research report on Thursday, June 18th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Steel Dynamics in a report on Tuesday, March 17th.

Insider Buying and Selling at Steel Dynamics

In other Steel Dynamics news, SVP Miguel Alvarez sold 4,825 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the completion of the sale, the senior vice president directly owned 122,257 shares of the company's stock, valued at approximately $27,578,734.06. This represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kenneth W. Cornew sold 5,000 shares of the company's stock in a transaction that occurred on Thursday, April 23rd. The shares were 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 represents a 13.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 22,125 shares of company stock worth $5,438,226. 6.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Steel Dynamics

A number of hedge funds have recently modified their holdings of STLD. Prosperity Bancshares Inc bought a new position in Steel Dynamics in the 4th quarter worth $25,000. MV Capital Management Inc. purchased a new position in Steel Dynamics during the fourth quarter valued at $27,000. Sound Income Strategies LLC grew its holdings in Steel Dynamics by 1,500.0% during the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock valued at $28,000 after purchasing an additional 150 shares during the period. Cedar Mountain Advisors LLC bought a new stake in Steel Dynamics during the first quarter valued at about $31,000. Finally, DV Equities LLC purchased a new stake in Steel Dynamics in the fourth quarter worth about $33,000. Institutional investors own 82.41% of the company's stock.

Steel Dynamics Stock Performance

Shares of NASDAQ STLD opened at $220.39 on Friday. The firm's 50-day moving average price is $245.84 and its 200-day moving average price is $204.81. Steel Dynamics has a 52-week low of $119.89 and a 52-week high of $288.74. The company has a market cap of $31.89 billion, a PE ratio of 23.57, a PEG ratio of 0.43 and a beta of 1.53. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share for the quarter, missing the consensus estimate of $2.79 by ($0.01). The company had revenue of $5.20 billion for the quarter, compared to analysts' expectations of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The firm's revenue for the quarter was up 19.1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.44 earnings per share. As a group, analysts anticipate that Steel Dynamics will post 16.78 EPS for the current year.

Steel Dynamics Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics's dividend payout ratio is 22.67%.

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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