Steel Dynamics (NASDAQ:STLD) Price Target Raised to $235.00

Key Points

• Wells Fargo raised its price target on Steel Dynamics to $235 with an "overweight" rating (implying ~3.7% upside); analyst views remain mixed — KeyCorp lifted its target to $241, while the MarketBeat consensus is a "Hold" with a $202 target (5 Buy, 4 Hold, 1 Sell).
• Q1 results showed EPS of $2.78 (missed by $0.01) and revenue of $5.20B (below estimates) but revenue was up 19.1% YoY and management highlighted strong steel shipments/pricing even as the aluminum segment showed weakness.
• The stock recently traded near its 12-month high (~$226.67), with a market cap of ~$32.8B, a P/E of ~24.2 and high institutional ownership (~82%), signaling significant investor interest despite near-term execution nuances.

Steel Dynamics (NASDAQ:STLD - Get Free Report) had its target price hoisted by Wells Fargo & Company from $207.00 to $235.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the basic materials company's stock. Wells Fargo & Company's target price would suggest a potential upside of 3.68% from the company's previous close.

STLD has been the subject of several other reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Steel Dynamics in a research report on Monday, December 29th. KeyCorp increased their price objective on Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a research report on Wednesday. Morgan Stanley reiterated an "underperform" rating and issued a $190.00 price objective on shares of Steel Dynamics in a research report on Tuesday, March 17th. JPMorgan Chase & Co. increased their price objective on Steel Dynamics from $192.00 to $205.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 14th. Finally, Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday. Five analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Steel Dynamics presently has a consensus rating of "Hold" and a consensus price target of $202.00.

Steel Dynamics Price Performance

Shares of NASDAQ:STLD traded up $6.46 during midday trading on Wednesday, hitting $226.67. The company had a trading volume of 496,302 shares, compared to its average volume of 1,280,401. Steel Dynamics has a twelve month low of $119.50 and a twelve month high of $226.97. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.06 and a quick ratio of 1.29. The stock has a market cap of $32.80 billion, a price-to-earnings ratio of 24.22, a price-to-earnings-growth ratio of 0.56 and a beta of 1.39. The business's 50-day simple moving average is $186.20 and its 200-day simple moving average is $173.18.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The basic materials company reported $2.78 EPS for the quarter, missing the consensus estimate of $2.79 by ($0.01). The company had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.64%. Steel Dynamics'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. On average, research analysts predict that Steel Dynamics will post 14.04 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Lingohr Asset Management GmbH boosted its position in shares of Steel Dynamics by 1,284.8% during the third quarter. Lingohr Asset Management GmbH now owns 40,423 shares of the basic materials company's stock worth $5,636,000 after buying an additional 37,504 shares during the period. Ninety One UK Ltd boosted its position in shares of Steel Dynamics by 33.5% during the third quarter. Ninety One UK Ltd now owns 119,863 shares of the basic materials company's stock worth $16,712,000 after buying an additional 30,102 shares during the period. Rakuten Investment Management Inc. purchased a new position in shares of Steel Dynamics during the third quarter worth $8,592,000. Forvis Mazars Wealth Advisors LLC purchased a new position in shares of Steel Dynamics during the third quarter worth $1,047,000. Finally, Mediolanum International Funds Ltd boosted its position in shares of Steel Dynamics by 157.2% during the third quarter. Mediolanum International Funds Ltd now owns 206,140 shares of the basic materials company's stock worth $28,629,000 after buying an additional 125,981 shares during the period. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Steel Dynamics

Here are the key news stories impacting Steel Dynamics this week:

• Positive Sentiment: KeyCorp raised its price target to $241 and kept an overweight rating, supporting bullish sentiment and giving investors a near-term valuation tailwind. Read More.
• Positive Sentiment: Company reported strong shipments and benefited from higher steel prices; top-line momentum and robust demand were cited as drivers of the quarter’s profit and helped investor optimism. Read More.
• Neutral Sentiment: Q1 earnings call transcript, slide deck and multiple write-ups were published (useful for detail and guidance context) — transcripts and slides are available for those parsing guidance and segment detail. Read More.
• Neutral Sentiment: Analyst coverage remains constructive overall (several buy/overweight ratings) but consensus views are mixed; monitor subsequent analyst reaction for further target/ratings changes. Read More.
• Negative Sentiment: Reported EPS of $2.78 missed consensus by $0.01 and revenue of $5.20B missed the $5.39B consensus — the tiny EPS miss and revenue shortfall are immediate near-term negatives investors will weigh. Read More.
• Negative Sentiment: Management noted aluminum segment weakness on the call (aluminum drag), which created some offset to otherwise strong steel performance. Read More.
• Negative Sentiment: Analysts and coverage flagged nuance around a weaker cash position and the small miss — potential concerns for short-term cash/working-capital dynamics and margin sustainability. Read More.

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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