Steel Dynamics (NASDAQ:STLD) Hits New 12-Month High - Should You Buy?

Key Points

• New 52-week high: Steel Dynamics shares reached $229.50 (last $228.50) on the day, with about 214,447 shares traded.
• Mixed analyst view: Wall Street is split (five Buy, five Hold, one Sell) with a consensus rating of "Hold" and an average price target of $214.30, though some firms recently raised targets to $255 and $240.
• Quarterly results and dividend bump: The company reported $2.78 EPS (missed by $0.01) and $5.20B revenue (vs. $5.39B expected) while revenue rose 19.1% year-over-year, and it raised the quarterly dividend to $0.53 ($2.12 annualized, ~0.9% yield).

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) hit a new 52-week high on Thursday . The company traded as high as $229.50 and last traded at $228.50, with a volume of 214447 shares changing hands. The stock had previously closed at $224.37.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on STLD. JPMorgan Chase & Co. boosted their price target on Steel Dynamics from $192.00 to $205.00 and gave the company a "neutral" rating in a report on Tuesday, April 14th. Citigroup boosted 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 reiterated an "underperform" rating and issued a $190.00 price target on shares of Steel Dynamics in a report on Tuesday, March 17th. Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a report on Saturday, April 18th. Finally, BMO Capital Markets boosted their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research report on Wednesday, April 22nd. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $214.30.

Steel Dynamics Trading Up 2.0%

The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. The stock has a market cap of $33.12 billion, a P/E ratio of 24.50, a PEG ratio of 0.57 and a beta of 1.39. The firm's 50-day simple moving average is $189.85 and its 200 day simple moving average is $176.41.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 EPS for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The firm had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $5.39 billion. During the same quarter last year, the company posted $1.44 EPS. Steel Dynamics's revenue for the quarter was up 19.1% on a year-over-year basis. As a group, equities research analysts anticipate that Steel Dynamics, Inc. will post 14.34 earnings per share for the current year.

Steel Dynamics Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st were paid a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This is a positive change from Steel Dynamics's previous quarterly dividend of $0.50. This represents a $2.12 annualized dividend and a dividend yield of 0.9%. Steel Dynamics's dividend payout ratio (DPR) is currently 22.67%.

Insider Buying and Selling at Steel Dynamics

In other news, SVP Miguel Alvarez sold 4,825 shares of the 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 completion of the transaction, 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 SEC, which can be accessed through this link. Also, Director Kenneth W. Cornew sold 5,000 shares of the stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the completion of the transaction, the director owned 31,299 shares of the company's stock, valued at $7,038,206.13. This trade represents a 13.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Prosperity Bancshares Inc bought a new position in shares of Steel Dynamics in the fourth quarter valued at approximately $25,000. MV Capital Management Inc. bought a new position in Steel Dynamics during the fourth quarter valued at about $27,000. Sound Income Strategies LLC boosted its stake in 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 valued at $28,000 after buying an additional 150 shares in the last quarter. Cornerstone Planning Group LLC boosted its stake in 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 valued at $27,000 after buying an additional 180 shares in the last quarter. Finally, DV Equities LLC bought a new position in Steel Dynamics during the fourth quarter valued at about $33,000. 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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