Steel Dynamics (NASDAQ:STLD) Hits New 1-Year High - Should You Buy?

Key Points

• Steel Dynamics hit a new 52-week high of $243.74, reflecting a strong recent rally and a 4.0% stock increase in the report. The move came amid elevated trading interest, with the stock last seen near $243.17.
• Several analysts raised their price targets on STLD, including Citigroup to $255 and KeyCorp to $241, while the overall consensus remains a “Moderate Buy”. The average price target sits at $219.36, below the current share price.
• The company reported mixed quarterly results, with EPS of $2.78 missing estimates by a penny and revenue of $5.20 billion below expectations, though revenue still rose 19.1% year over year. Steel Dynamics also declared a quarterly dividend of $0.53 per share, payable July 10.

Shares of Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) hit a new 52-week high during trading on Tuesday . The stock traded as high as $243.74 and last traded at $243.17, with a volume of 23801 shares. The stock had previously closed at $240.03.

Analysts Set New Price Targets

Several brokerages have recently issued reports on STLD. BMO Capital Markets upped their price target on Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. KeyCorp upped their price target on Steel Dynamics from $190.00 to $241.00 and gave the company an "overweight" 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 company an "overweight" rating in a research note on Wednesday, April 22nd. Citigroup upped 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. Finally, Wall Street Zen raised Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $219.36.

Steel Dynamics Stock Up 4.0%

The firm has a 50 day simple moving average of $203.88 and a two-hundred day simple moving average of $185.80. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. The stock has a market cap of $36.13 billion, a price-to-earnings ratio of 26.70, a price-to-earnings-growth ratio of 0.51 and a beta of 1.48.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The company had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same period in the previous year, the company posted $1.44 EPS. The company's quarterly revenue was up 19.1% compared to the same quarter last year. As a group, sell-side analysts expect that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

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 issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics's dividend payout ratio is 22.67%.

Insiders Place Their Bets

In other Steel Dynamics news, SVP Miguel Alvarez sold 4,825 shares of the stock in a transaction dated 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 completion of the sale, the senior vice president directly owned 122,257 shares in the company, valued at $27,578,734.06. This represents 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 available through the SEC website. Also, SVP Richard A. Poinsatte sold 2,300 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total value of $538,453.00. Following the completion of the sale, the senior vice president owned 28,618 shares of the company's stock, valued at $6,699,759.98. This trade represents a 7.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 12,125 shares of company stock worth $2,751,227 over the last ninety days. 6.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Steel Dynamics

Several large investors have recently modified their holdings of STLD. Prosperity Bancshares Inc bought a new stake in shares of Steel Dynamics in the fourth quarter worth about $25,000. Cornerstone Planning Group LLC grew its holdings in shares of Steel Dynamics by 1,636.4% during the third quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company's stock worth $27,000 after buying an additional 180 shares in the last quarter. MV Capital Management Inc. bought a new position in shares of Steel Dynamics during the fourth quarter worth about $27,000. Sound Income Strategies LLC grew its holdings in shares of Steel Dynamics by 1,500.0% during the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock worth $28,000 after buying an additional 150 shares in the last quarter. Finally, Cedar Mountain Advisors LLC bought a new position in shares of Steel Dynamics during the first quarter worth about $31,000. 82.41% of the stock is currently owned by institutional investors.

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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