Steel Dynamics (NASDAQ:STLD) Sets New 1-Year High - Should You Buy?

Key Points

• Steel Dynamics hit a new 52-week high, trading as high as $281.59 after rising about 4.2% intraday, and it has been supported by a strong move above both its 50-day and 200-day moving averages.
• Analyst views are mixed, but the broader consensus remains “Moderate Buy” with an average target price of $224.64, even as some firms raised targets and others kept cautious or bearish ratings.
• The company reported higher year-over-year revenue in its latest quarter and continues to pay a quarterly dividend of $0.53 per share, though recent insider selling and a modest earnings miss may temper enthusiasm.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) reached a new 52-week high on Thursday . The stock traded as high as $281.59 and last traded at $279.6190, with a volume of 535635 shares. The stock had previously closed at $268.34.

Wall Street Analyst Weigh In

Several analysts have recently commented on STLD shares. Morgan Stanley restated an "underperform" rating and set a $190.00 target price on shares of Steel Dynamics in a report on Tuesday, March 17th. Bank of America cut Steel Dynamics from a "buy" rating to a "neutral" rating and set a $250.00 target price on the stock. in a report on Thursday, April 30th. Wells Fargo & Company increased their target price on Steel Dynamics from $235.00 to $293.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. Barclays began coverage on shares of Steel Dynamics in a research report on Thursday, May 21st. They set an "overweight" rating and a $270.00 target price on the stock. Finally, KeyCorp upped their target price on shares of Steel Dynamics from $190.00 to $241.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $224.64.

Steel Dynamics Trading Up 4.2%

The company has a market cap of $40.46 billion, a P/E ratio of 29.90, a P/E/G ratio of 0.57 and a beta of 1.50. 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 business has a 50-day moving average price of $226.75 and a two-hundred day moving average price of $195.23.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 EPS for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The business had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same quarter in the prior year, the firm earned $1.44 EPS. The firm's quarterly revenue was up 19.1% compared to the same quarter last year. On average, analysts predict that Steel Dynamics, Inc. will post 14.77 EPS for the current year.

Steel Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics's dividend payout ratio (DPR) is currently 22.67%.

Insider Buying and Selling

In other news, Director Kenneth W. Cornew sold 5,000 shares of the firm's 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 transaction, the director directly owned 31,299 shares in the company, valued at $7,038,206.13. This trade represents a 13.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP James Stanley Anderson sold 10,000 shares of the firm's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total value of $2,687,000.00. Following the completion of the transaction, the senior vice president owned 102,837 shares in the company, valued at $27,632,301.90. This represents a 8.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 22,125 shares of company stock valued at $5,438,227 over the last 90 days. Company insiders own 6.60% of the company's stock.

Institutional Trading of Steel Dynamics

A number of hedge funds have recently modified their holdings of the company. Fisher Asset Management LLC increased its position in shares of Steel Dynamics by 47.2% in the 3rd quarter. Fisher Asset Management LLC now owns 34,878 shares of the basic materials company's stock valued at $4,863,000 after buying an additional 11,183 shares in the last quarter. Strs Ohio increased its position in shares of Steel Dynamics by 7.3% in the 4th quarter. Strs Ohio now owns 153,878 shares of the basic materials company's stock valued at $26,075,000 after buying an additional 10,519 shares in the last quarter. Concentric Capital Strategies LP bought a new stake in shares of Steel Dynamics in the 3rd quarter valued at $24,349,000. Robeco Institutional Asset Management B.V. increased its position in shares of Steel Dynamics by 3.7% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company's stock valued at $340,289,000 after buying an additional 72,122 shares in the last quarter. Finally, Lansforsakringar Fondforvaltning AB publ increased its position in shares of Steel Dynamics by 16.4% in the 3rd quarter. Lansforsakringar Fondforvaltning AB publ now owns 47,912 shares of the basic materials company's stock valued at $6,680,000 after buying an additional 6,738 shares in the last quarter. 82.41% of the stock is currently 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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