Steel Dynamics (NASDAQ:STLD) Issues Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Steel Dynamics reported quarterly earnings of $2.74 EPS, exceeding analysts' expectations by $0.07.
• The company announced a quarterly dividend of $0.50, representing an annual yield of 1.4%.
• Institutional investors currently hold 82.41% of Steel Dynamics' stock, indicating strong institutional interest in the company.

Steel Dynamics (NASDAQ:STLD - Get Free Report) announced its earnings results on Monday. The basic materials company reported $2.74 earnings per share for the quarter, beating the consensus estimate of $2.63 by $0.11, RTT News reports. Steel Dynamics had a net margin of 6.07% and a return on equity of 11.88%. During the same period in the prior year, the business posted $2.05 earnings per share. The firm's quarterly revenue was up 11.2% on a year-over-year basis.

Steel Dynamics Stock Up 2.5%

Shares of NASDAQ STLD traded up $3.53 on Monday, hitting $146.28. The company had a trading volume of 1,623,971 shares, compared to its average volume of 1,542,305. The company has a quick ratio of 1.34, a current ratio of 3.13 and a debt-to-equity ratio of 0.43. Steel Dynamics has a 12-month low of $103.17 and a 12-month high of $155.56. The firm has a market capitalization of $21.53 billion, a P/E ratio of 21.32, a PEG ratio of 1.17 and a beta of 1.40. The business has a 50 day moving average of $135.49 and a two-hundred day moving average of $130.69.

Steel Dynamics Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Tuesday, September 30th. Steel Dynamics's payout ratio is currently 29.15%.

Insider Buying and Selling

In other Steel Dynamics news, SVP Christopher A. Graham sold 12,000 shares of the company's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $126.71, for a total value of $1,520,520.00. Following the completion of the transaction, the senior vice president owned 66,738 shares in the company, valued at $8,456,371.98. This represents a 15.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Steel Dynamics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MUFG Securities EMEA plc acquired a new stake in shares of Steel Dynamics during the second quarter valued at about $52,000. NewEdge Advisors LLC boosted its holdings 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 purchasing an additional 618 shares during the last quarter. MGB Wealth Management LLC acquired a new stake in Steel Dynamics during the 2nd quarter valued at approximately $251,000. Acadian Asset Management LLC increased its holdings in Steel Dynamics by 82.7% during the 1st quarter. Acadian Asset Management LLC now owns 3,485 shares of the basic materials company's stock worth $435,000 after purchasing an additional 1,578 shares during the last quarter. Finally, Boothbay Fund Management LLC acquired a new position in shares of Steel Dynamics in the 2nd quarter valued at approximately $462,000. Hedge funds and other institutional investors own 82.41% of the company's stock.

Analyst Ratings Changes

Several brokerages have weighed in on STLD. Wells Fargo & Company boosted their price target on Steel Dynamics from $143.00 to $150.00 and gave the company an "overweight" rating in a report on Monday, September 15th. JPMorgan Chase & Co. raised their target price on shares of Steel Dynamics from $150.00 to $160.00 and gave the stock a "neutral" rating in a research report on Monday, October 13th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Steel Dynamics in a research report on Wednesday, October 8th. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $149.89.

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.