Steel Dynamics, Inc. (NASDAQ:STLD) Plans Quarterly Dividend of $0.50

Key Points

• Steel Dynamics, Inc. announced a quarterly dividend of $0.50 per share, with a yield of 1.6%, payable on October 10th to shareholders of record as of September 30th.
• Despite missing earnings estimates for the last quarter, with earnings per share of $2.01 compared to a forecast of $2.05, analysts predict the company will post $12.10 per share next year, indicating strong future earnings potential.
• Recent insider selling included significant transactions by Director Gabriel Shaheen and SVP Christopher A. Graham, with a total of 20,749 shares sold over the last three months, representing 6.30% of stock ownership by insiders.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) declared a quarterly dividend on Thursday, August 14th, RTT News reports. Shareholders of record on Tuesday, September 30th will be given a dividend of 0.50 per share by the basic materials company on Friday, October 10th. This represents a c) annualized dividend and a yield of 1.6%.

Steel Dynamics has a payout ratio of 16.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Steel Dynamics to earn $12.10 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 16.5%.

Steel Dynamics Trading Down 1.4%

Steel Dynamics stock traded down $1.76 during trading hours on Thursday, hitting $127.48. The stock had a trading volume of 1,048,093 shares, compared to its average volume of 1,361,107. The company has a quick ratio of 1.34, a current ratio of 3.13 and a debt-to-equity ratio of 0.43. The stock has a market cap of $18.77 billion, a price-to-earnings ratio of 18.58, a P/E/G ratio of 1.05 and a beta of 1.38. Steel Dynamics has a one year low of $103.17 and a one year high of $155.56. The business's 50 day simple moving average is $129.77 and its 200-day simple moving average is $128.24.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Monday, July 21st. The basic materials company reported $2.01 EPS for the quarter, missing the consensus estimate of $2.05 by ($0.04). The firm had revenue of $4.57 billion during the quarter, compared to the consensus estimate of $4.82 billion. Steel Dynamics had a net margin of 6.07% and a return on equity of 11.88%. Steel Dynamics's revenue for the quarter was down 1.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.72 earnings per share. On average, equities analysts predict that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Insider Buying and Selling at Steel Dynamics

In other news, Director Gabriel Shaheen sold 1,254 shares of the company's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $134.11, for a total transaction of $168,173.94. Following the sale, the director directly owned 81,812 shares in the company, valued at $10,971,807.32. This represents a 1.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Christopher A. Graham sold 12,000 shares of the company's stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $126.71, for a total value of $1,520,520.00. Following the sale, the senior vice president owned 66,738 shares in the company, valued at approximately $8,456,371.98. This represents a 15.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 20,749 shares of company stock valued at $2,702,468 over the last three months. 6.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Steel Dynamics

Several hedge funds have recently bought and sold shares of the stock. Financial Gravity Asset Management Inc. bought a new position in Steel Dynamics during the first quarter valued at approximately $25,000. Cary Street Partners Investment Advisory LLC grew its position in Steel Dynamics by 493.9% during the first quarter. Cary Street Partners Investment Advisory LLC now owns 196 shares of the basic materials company's stock valued at $25,000 after acquiring an additional 163 shares during the last quarter. Trust Co. of Toledo NA OH bought a new position in Steel Dynamics during the second quarter valued at approximately $30,000. Zions Bancorporation National Association UT bought a new position in Steel Dynamics during the first quarter valued at approximately $32,000. Finally, WPG Advisers LLC bought a new position in Steel Dynamics during the first quarter valued at approximately $32,000. 82.41% of the stock is currently owned by institutional investors.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.

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