Steel Dynamics (NASDAQ:STLD) Reaches New 52-Week High - Should You Buy?

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $238.74 and last traded at $237.46, with a volume of 1127508 shares traded. The stock had previously closed at $229.82.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Citigroup lifted their price target on Steel Dynamics from $180.00 to $255.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. Morgan Stanley reiterated an "underperform" rating and set a $190.00 price objective on shares of Steel Dynamics in a research report on Tuesday, March 17th. Weiss Ratings upgraded Steel Dynamics from a "hold (c)" rating to a "buy (b-)" rating in a research report on Wednesday, April 29th. Bank of America downgraded Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 price objective on the stock. in a research report on Thursday, April 30th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Six equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Steel Dynamics has a consensus rating of "Hold" and a consensus price target of $214.30.

Steel Dynamics Stock Performance

The stock has a market cap of $34.24 billion, a PE ratio of 25.40, a P/E/G ratio of 0.49 and a beta of 1.48. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. The stock has a 50-day moving average of $191.49 and a 200 day moving average of $177.85.

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 analysts' consensus estimates of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The business had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $5.39 billion. During the same quarter in the prior year, the firm earned $1.44 EPS. Steel Dynamics's revenue for the quarter was up 19.1% compared to the same quarter last year. Equities analysts predict that Steel Dynamics, Inc. will post 14.77 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Tuesday, March 31st were given a $0.53 dividend. This is an increase from Steel Dynamics's previous quarterly dividend of $0.50. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Tuesday, March 31st. Steel Dynamics's dividend payout ratio (DPR) is presently 22.67%.

Insiders Place Their Bets

In other Steel Dynamics news, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total value of $1,124,350.00. Following the sale, the director owned 31,299 shares in the company, valued at $7,038,206.13. The trade was a 13.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The shares were 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 owned 122,257 shares in the company, valued at $27,578,734.06. This represents a 3.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 6.60% of the stock is owned by insiders.

Institutional Trading of Steel Dynamics

Institutional investors have recently added to or reduced their stakes in the stock. Prosperity Bancshares Inc acquired a new stake in Steel Dynamics in the 4th quarter valued at approximately $25,000. MV Capital Management Inc. purchased a new stake in shares of Steel Dynamics in the 4th quarter valued at $27,000. Sound Income Strategies LLC raised its holdings in shares of Steel Dynamics by 1,500.0% in the 4th 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 during the period. Cedar Mountain Advisors LLC purchased a new stake in shares of Steel Dynamics in the 1st quarter valued at $31,000. Finally, Cornerstone Planning Group LLC raised its holdings in shares of Steel Dynamics by 1,636.4% in the 3rd 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 during the period. Institutional investors and hedge funds own 82.41% of the company's stock.

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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