Steel Dynamics (NASDAQ:STLD) Cut to Neutral at Bank of America

Key Points

• Bank of America downgraded Steel Dynamics from "buy" to neutral and set a $250 price target, implying roughly a 9.5% upside from the prior close.
• Steel Dynamics reported quarterly EPS of $2.78 (missed by $0.01) and revenue of $5.20B (below expectations) but revenue was up 19.1% year‑over‑year; the stock traded at $228.33, near its 52‑week high of $229.00.
• Analyst sentiment is mixed: the consensus is a Hold with an average price target of $214.30 and a split of 5 Buys, 5 Holds and 1 Sell, despite several firms recently raising their targets.

Steel Dynamics (NASDAQ:STLD - Get Free Report) was downgraded by equities research analysts at Bank of America from a "buy" rating to a "neutral" rating in a research note issued on Thursday, Marketbeat Ratings reports. They currently have a $250.00 price objective on the basic materials company's stock. Bank of America's price target would suggest a potential upside of 9.49% from the company's previous close.

Several other equities research analysts have also recently commented on the company. Morgan Stanley restated an "underperform" rating and set a $190.00 price target on shares of Steel Dynamics in a research note on Tuesday, March 17th. Citigroup upped their price target on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. Wells Fargo & Company upped their price target on Steel Dynamics from $207.00 to $235.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 22nd. BMO Capital Markets upped their price target on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 22nd. Finally, Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. Five investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $214.30.

Steel Dynamics Stock Up 1.8%

STLD stock traded up $3.96 during trading on Thursday, hitting $228.33. 112,250 shares of the company's stock were exchanged, compared to its average volume of 1,275,474. The business has a 50-day moving average price of $189.85 and a two-hundred day moving average price of $176.41. The stock has a market capitalization of $33.04 billion, a price-to-earnings ratio of 24.33, a PEG ratio of 0.57 and a beta of 1.39. Steel Dynamics has a 52-week low of $119.89 and a 52-week high of $229.00. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data 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). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The firm had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $5.39 billion. During the same quarter in the prior year, the firm posted $1.44 EPS. Steel Dynamics's quarterly revenue was up 19.1% compared to the same quarter last year. As a group, equities research analysts expect that Steel Dynamics will post 14.34 EPS for the current year.

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 on Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total value of $1,088,423.50. Following the sale, the senior vice president 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kenneth W. Cornew sold 5,000 shares of the 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 sale, the director directly owned 31,299 shares in the company, valued at approximately $7,038,206.13. The trade was a 13.77% decrease in their position. The disclosure for this sale is available in the SEC filing. 6.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Steel Dynamics

A number of large investors have recently made changes to their positions in the stock. Resona Asset Management Co. Ltd. boosted its stake in shares of Steel Dynamics by 1.3% during the first quarter. Resona Asset Management Co. Ltd. now owns 43,430 shares of the basic materials company's stock valued at $7,750,000 after acquiring an additional 566 shares during the last quarter. Resonant Capital Advisors LLC boosted its stake in shares of Steel Dynamics by 3.3% during the first quarter. Resonant Capital Advisors LLC now owns 4,202 shares of the basic materials company's stock valued at $759,000 after acquiring an additional 136 shares during the last quarter. Burney Co. lifted its position in Steel Dynamics by 9.5% during the first quarter. Burney Co. now owns 4,078 shares of the basic materials company's stock worth $734,000 after buying an additional 353 shares during the period. Dividend Assets Capital LLC purchased a new position in Steel Dynamics during the first quarter worth about $1,513,000. Finally, Praxis Investment Management Inc. lifted its position in Steel Dynamics by 1.9% during the first quarter. Praxis Investment Management Inc. now owns 4,993 shares of the basic materials company's stock worth $899,000 after buying an additional 93 shares during the period. Institutional investors and hedge funds own 82.41% of the company's stock.

Steel Dynamics Company Profile

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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