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

Key Points

• Steel Dynamics has an average analyst rating of “Moderate Buy” from 12 firms, with a consensus 12-month price target of about $224.64. Views are mixed, with one sell rating, four holds, six buys, and one strong buy.
• The company recently reported Q1 earnings of $2.78 per share, just below estimates, on revenue of $5.20 billion versus expectations of $5.39 billion. Revenue still rose 19.1% year over year, and analysts expect full-year EPS of 14.77.
• Steel Dynamics also announced a quarterly dividend of $0.53 per share, payable July 10, which annualizes to $2.12 per share and a yield of about 0.8%. Meanwhile, insiders have sold shares recently, while institutional investors continue to hold a large majority of the stock.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twelve research firms that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, four have given a hold recommendation, six have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $224.6364.

A number of equities research analysts have issued reports on STLD shares. Morgan Stanley reissued an "underperform" rating and set a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. BMO Capital Markets raised their price target on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. JPMorgan Chase & Co. lifted their price target on Steel Dynamics from $192.00 to $205.00 and gave the company a "neutral" rating in a research report on Tuesday, April 14th. Barclays assumed coverage on Steel Dynamics in a report on Thursday, May 21st. They set an "overweight" rating and a $270.00 price objective on the stock. Finally, Citigroup raised their target price on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd.

Steel Dynamics Price Performance

STLD opened at $269.80 on Wednesday. The company has a market capitalization of $39.05 billion, a price-to-earnings ratio of 28.86, a PEG ratio of 0.57 and a beta of 1.50. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. The firm has a 50-day moving average price of $224.82 and a 200-day moving average price of $194.42. Steel Dynamics has a twelve month low of $119.89 and a twelve month high of $280.49.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 EPS for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). The business 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 business's quarterly revenue was up 19.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.44 earnings per share. Equities analysts expect that Steel Dynamics will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's dividend payout ratio is presently 22.67%.

Insider Activity

In related news, SVP Miguel Alvarez sold 4,825 shares of the business'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 transaction, the senior vice president owned 122,257 shares of the company's stock, valued at approximately $27,578,734.06. The trade was a 3.80% decrease in their ownership of the stock. The sale was disclosed in a legal 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 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 in the company, valued at $7,038,206.13. This trade represents a 13.77% decrease in their position. 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 $5,438,227 over the last ninety days. 6.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Steel Dynamics

Institutional investors and hedge funds have recently made changes to their positions in the business. Parallel Advisors LLC boosted its stake in Steel Dynamics by 14.6% during the first quarter. Parallel Advisors LLC now owns 2,106 shares of the basic materials company's stock valued at $379,000 after buying an additional 268 shares during the period. NewEdge Advisors LLC grew its position in Steel Dynamics by 15.2% during the first quarter. NewEdge Advisors LLC now owns 14,134 shares of the basic materials company's stock worth $2,544,000 after buying an additional 1,865 shares in the last quarter. Alpine Woods Capital Investors LLC increased its stake in Steel Dynamics by 10.3% in the 1st quarter. Alpine Woods Capital Investors LLC now owns 44,156 shares of the basic materials company's stock worth $7,948,000 after acquiring an additional 4,117 shares during the last quarter. Glenmede Trust Co. NA raised its holdings in shares of Steel Dynamics by 3.3% in the 1st quarter. Glenmede Trust Co. NA now owns 3,439 shares of the basic materials company's stock valued at $619,000 after acquiring an additional 109 shares in the last quarter. Finally, Leigh Baldwin & CO. LLC bought a new stake in shares of Steel Dynamics during the 1st quarter valued at about $425,000. Hedge funds and other institutional investors own 82.41% of the company's stock.

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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