Steel Dynamics, Inc. (NASDAQ:STLD) Receives Average Rating of "Hold" from Analysts

Key Points

• Steel Dynamics has an average analyst rating of “Hold” from 11 covering firms, though sentiment is mixed with six buy ratings, four holds, and one sell. The average 12-month price target is $214.30.
• The company recently reported quarterly EPS of $2.78, slightly below expectations, and revenue of $5.20 billion, also missing estimates. Revenue was still up 19.1% year over year.
• Steel Dynamics announced a quarterly dividend of $0.53 per share, payable July 10, implying an annualized yield of about 0.9%. The payout ratio is currently 22.67%.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) has been given an average rating of "Hold" by the eleven research firms that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and six have assigned a buy recommendation to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $214.30.

A number of brokerages recently weighed in on STLD. Weiss Ratings raised Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. Citigroup lifted their price target on Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a report on Wednesday, April 22nd. Morgan Stanley restated an "underperform" rating and issued a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. BMO Capital Markets boosted their target price on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, April 22nd. Finally, JPMorgan Chase & Co. lifted their price target on Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 14th.

Steel Dynamics Price Performance

NASDAQ:STLD opened at $229.34 on Friday. The business's 50-day moving average price is $197.95 and its 200 day moving average price is $182.49. The firm has a market cap of $33.19 billion, a P/E ratio of 24.53, a PEG ratio of 0.50 and a beta of 1.48. Steel Dynamics has a 52-week low of $119.89 and a 52-week high of $243.73. 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 issued its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share for the quarter, missing analysts' consensus estimates of $2.79 by ($0.01). The company had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $5.39 billion. Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The company's revenue for the quarter was up 19.1% compared to the same quarter last year. During the same period in the prior year, the business posted $1.44 EPS. As a group, sell-side analysts predict that Steel Dynamics will post 14.77 earnings per share for the current fiscal year.

Steel Dynamics Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Tuesday, June 30th. Steel Dynamics's payout ratio is currently 22.67%.

Insider Activity

In other news, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction that occurred on 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, Director Kenneth W. Cornew sold 5,000 shares of the company's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total value of $1,124,350.00. Following the completion of the sale, the director owned 31,299 shares in the company, valued at $7,038,206.13. This trade represents a 13.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 12,125 shares of company stock worth $2,751,227. Company insiders own 6.60% of the company's stock.

Institutional Trading of Steel Dynamics

A number of large investors have recently bought and sold shares of STLD. NewEdge Advisors LLC grew its position in Steel Dynamics by 307.5% in the first quarter. NewEdge Advisors LLC now owns 819 shares of the basic materials company's stock valued at $102,000 after acquiring an additional 618 shares during the period. Acadian Asset Management LLC increased its holdings in shares of Steel Dynamics by 82.7% in the first quarter. Acadian Asset Management LLC now owns 3,485 shares of the basic materials company's stock worth $435,000 after acquiring an additional 1,578 shares in the last quarter. Jump Financial LLC bought a new position in shares of Steel Dynamics during the second quarter worth about $1,019,000. Qube Research & Technologies Ltd acquired a new position in Steel Dynamics during the second quarter valued at approximately $48,746,000. Finally, Sei Investments Co. grew its stake in Steel Dynamics by 7.9% in the second quarter. Sei Investments Co. now owns 105,051 shares of the basic materials company's stock valued at $13,447,000 after purchasing an additional 7,712 shares in the last quarter. 82.41% of the stock is currently owned by institutional investors.

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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