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

Key Points

• Analysts rate Steel Dynamics “Moderate Buy”: Eight of 12 brokerages recommend buying the stock, while four advise holding it. The average 12-month price target is $249, with recent targets ranging up to $300.
• Quarterly results exceeded expectations: Steel Dynamics reported 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 pays a quarterly dividend of $0.53, equivalent to an annualized $2.12 and a 0.8% yield. Shares opened at $252.34, compared with a 52-week range of $119.89 to $288.74.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twelve brokerages that are presently covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $249.00.

A number of research firms have recently weighed in on STLD. Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. KeyCorp restated an "overweight" rating on shares of Steel Dynamics in a research report on Wednesday, July 22nd. Citigroup boosted their price target on Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Wells Fargo & Company cut their price objective on shares of Steel Dynamics from $291.00 to $275.00 and set an "overweight" rating for the company in a research report on Wednesday, July 22nd. Finally, The Goldman Sachs Group started coverage on shares of Steel Dynamics in a research note on Wednesday. They set a "buy" rating and a $300.00 price objective on the stock.

Steel Dynamics Price Performance

Shares of NASDAQ STLD opened at $252.34 on Thursday. The business's 50 day moving average price is $248.00 and its two-hundred day moving average price is $213.15. The company has a market cap of $36.52 billion, a PE ratio of 22.88, a price-to-earnings-growth ratio of 0.49 and a beta of 1.53. The company has a quick ratio of 1.45, a current ratio of 3.18 and a debt-to-equity ratio of 0.45. Steel Dynamics has a twelve month low of $119.89 and a twelve month 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, beating the consensus estimate of $3.63 by $0.06. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The firm had revenue of $6.09 billion for the quarter, compared to the consensus estimate of $5.56 billion. During the same period in the previous year, the company earned $2.01 earnings per share. The company's quarterly revenue was up 33.4% on a year-over-year basis. On average, analysts predict that Steel Dynamics will post 17.16 EPS for the current year.

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Tuesday, June 30th were paid a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.12 annualized dividend and a yield of 0.8%. Steel Dynamics's dividend payout ratio (DPR) is 19.22%.

Insider Buying and Selling

In other news, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total transaction of $538,453.00. Following the sale, the senior vice president directly owned 28,618 shares in the company, valued at approximately $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP James Stanley Anderson sold 10,000 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the sale, the senior vice president directly owned 102,837 shares in the company, valued at $27,632,301.90. The trade was a 8.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 6.60% of the company's stock.

Institutional Trading of Steel Dynamics

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