Steel Dynamics (NASDAQ:STLD) Releases Earnings Results, Beats Estimates By $0.16 EPS

Key Points

• Steel Dynamics beat earnings expectations, reporting quarterly EPS of $3.80 versus analysts’ estimate of $3.64. The company also posted a 15.54% return on equity and a 7.22% net margin.
• The stock fell 2.1% on the day the results were released, trading at $230.49 despite heavier-than-average volume. Shares remain below their 1-year high of $288.74 but above the 1-year low of $119.89.
• Wall Street remains cautiously bullish on STLD, with a consensus rating of “Moderate Buy” and a target price of $239.18. Recent analyst moves included price target changes from Bank of America, Morgan Stanley, Citigroup, and rating upgrades from Wall Street Zen and Weiss Ratings.

Steel Dynamics (NASDAQ:STLD - Get Free Report) released its quarterly earnings results on Monday. The basic materials company reported $3.80 earnings per share for the quarter, topping analysts' consensus estimates of $3.64 by $0.16, Zacks reports. Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.

Steel Dynamics Stock Down 2.1%

Shares of STLD stock traded down $5.02 during trading on Monday, reaching $230.49. The company's stock had a trading volume of 1,760,087 shares, compared to its average volume of 1,250,451. Steel Dynamics has a 1-year low of $119.89 and a 1-year high of $288.74. The stock's 50-day moving average price is $245.95 and its 200 day moving average price is $209.05. The company has a market capitalization of $33.36 billion, a price-to-earnings ratio of 24.65, a P/E/G ratio of 0.45 and a beta of 1.53. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33.

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Tuesday, June 30th were issued a $0.53 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. Steel Dynamics's payout ratio is 22.67%.

Analyst Ratings Changes

Several brokerages have weighed in on STLD. Bank of America lowered their target price on shares of Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a research note on Thursday, July 9th. Wall Street Zen raised shares of Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday, April 18th. Morgan Stanley upped their price objective on shares of Steel Dynamics from $227.00 to $270.00 and gave the stock an "equal weight" rating in a report on Monday, June 22nd. Weiss Ratings upgraded shares of Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 18th. Finally, Citigroup upped 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. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Steel Dynamics currently has a consensus rating of "Moderate Buy" and a consensus target price of $239.18.

Insider Buying and Selling at Steel Dynamics

In other Steel Dynamics news, SVP Miguel Alvarez sold 4,825 shares of the firm's stock in a transaction that occurred 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 transaction, the senior vice president 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 sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP James Stanley Anderson sold 10,000 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the completion of the transaction, the senior vice president owned 102,837 shares of the company's stock, valued at approximately $27,632,301.90. This trade represents a 8.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 22,125 shares of company stock valued at $5,438,226 in the last quarter. Corporate insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of STLD. Prosperity Bancshares Inc purchased a new position in shares of Steel Dynamics in the 4th quarter valued at about $25,000. DV Equities LLC acquired a new stake in Steel Dynamics in the fourth quarter valued at approximately $33,000. Strive Financial Group LLC purchased a new position in Steel Dynamics in the fourth quarter worth approximately $34,000. Measured Wealth Private Client Group LLC purchased a new position in Steel Dynamics in the third quarter worth approximately $46,000. Finally, MUFG Securities EMEA plc acquired a new position in Steel Dynamics during the 2nd quarter worth approximately $52,000. 82.41% of the stock is owned by institutional investors and hedge funds.

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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