Steel Dynamics (NASDAQ:STLD) Rating Increased to Strong-Buy at Barclays

Key Points

• Barclays upgraded Steel Dynamics to “strong-buy”, adding to a wave of recent positive analyst action. Several other firms also raised ratings or price targets, and the stock now has a consensus Moderate Buy with an average target of $219.36.
• The stock was trading sharply higher, opening at $240.03 and up 3.5% on the day, near its 12-month high of $243.73. Steel Dynamics also carries a market cap of about $34.74 billion.
• Recent earnings were mixed but still showed strong growth year over year: EPS of $2.78 missed estimates by a penny and revenue of $5.20 billion came in below forecasts, though revenue rose 19.1% from a year earlier. Insiders recently sold shares, while institutional investors continue to hold the vast majority of the stock.

Steel Dynamics (NASDAQ:STLD - Get Free Report) was upgraded by equities researchers at Barclays to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports.

Other research analysts also recently issued reports about the company. Citigroup lifted their target price on Steel Dynamics from $180.00 to $255.00 and gave the company a "buy" rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. BMO Capital Markets lifted their target price on Steel Dynamics from $195.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. Wall Street Zen upgraded Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. Finally, JPMorgan Chase & Co. raised 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. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Steel Dynamics presently has a consensus rating of "Moderate Buy" and an average price target of $219.36.

Steel Dynamics Trading Up 3.5%

Shares of STLD stock opened at $240.03 on Thursday. The business's 50 day moving average is $202.58 and its two-hundred day moving average is $184.97. Steel Dynamics has a twelve month low of $119.89 and a twelve month high of $243.73. The company has a market capitalization of $34.74 billion, a P/E ratio of 25.67, a price-to-earnings-growth ratio of 0.49 and a beta of 1.48. 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 announced 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 analysts' expectations of $5.39 billion. During the same quarter last year, the business posted $1.44 earnings per share. The company's revenue for the quarter was up 19.1% compared to the same quarter last year. Equities analysts forecast that Steel Dynamics will post 14.77 EPS for the current year.

Insider Activity

In other news, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction that occurred 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 sale, the senior vice president directly owned 122,257 shares of the company's stock, valued at $27,578,734.06. This trade represents a 3.80% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the director directly owned 31,299 shares of the company's stock, valued at $7,038,206.13. This represents a 13.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 12,125 shares of company stock valued at $2,751,227 in the last three months. 6.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Steel Dynamics

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Capital Research Global Investors raised its holdings in Steel Dynamics by 0.3% during the fourth quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company's stock worth $613,926,000 after purchasing an additional 9,959 shares during the last quarter. Life Cycle Investment Partners Ltd acquired a new position in Steel Dynamics during the fourth quarter worth $586,702,000. Norges Bank acquired a new position in Steel Dynamics during the fourth quarter worth $564,590,000. Robeco Institutional Asset Management B.V. raised its holdings in Steel Dynamics by 3.7% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock worth $340,289,000 after purchasing an additional 72,122 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in Steel Dynamics by 6.3% during the fourth quarter. Invesco Ltd. now owns 1,965,092 shares of the basic materials company's stock worth $332,985,000 after purchasing an additional 116,379 shares during the last quarter. 82.41% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.