Steel Dynamics (NASDAQ:STLD) Sets New 12-Month High - Still a Buy?

Key Points

• Steel Dynamics stock hit a new 52-week high, trading as high as $208.87 and last around $209.42, up roughly 4.7% on the session.
• Analyst coverage is mixed—five Buys, four Holds and one Sell—resulting in a consensus “Hold” with an average price target of $185.11 (below the current price), although some firms like JPMorgan and Wells Fargo have recently raised targets into the $205–$207 range.
• On fundamentals, the company beat quarterly EPS estimates ($1.82 vs. $1.72), reported 14% YoY revenue growth, has a $30.36B market cap, and recently raised its quarterly dividend to $0.53 (about a 1.0% yield).

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Monday . The company traded as high as $208.87 and last traded at $209.4240, with a volume of 347916 shares changing hands. The stock had previously closed at $200.32.

Wall Street Analysts Forecast Growth

STLD has been the topic of a number of analyst reports. Jefferies Financial Group reaffirmed a "buy" rating on shares of Steel Dynamics in a report on Tuesday, March 17th. JPMorgan Chase & Co. boosted 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. Wall Street Zen raised Steel Dynamics from a "hold" rating to a "buy" rating in a research note on Saturday. Wells Fargo & Company raised their price target on Steel Dynamics from $196.00 to $207.00 and gave the company an "overweight" rating in a report on Wednesday, April 15th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Steel Dynamics in a report on Monday, December 29th. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $185.11.

Steel Dynamics Trading Up 4.7%

The company has a market capitalization of $30.36 billion, a price-to-earnings ratio of 26.15, a PEG ratio of 0.53 and a beta of 1.39. The firm has a 50-day moving average price of $185.69 and a 200-day moving average price of $172.19. The company has a current ratio of 3.06, a quick ratio of 1.29 and a debt-to-equity ratio of 0.48.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings results on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share for the quarter, beating analysts' consensus estimates of $1.72 by $0.10. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The company had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.62 billion. During the same period in the prior year, the company earned $1.36 EPS. Steel Dynamics's revenue was up 14.0% on a year-over-year basis. As a group, sell-side analysts predict that Steel Dynamics, Inc. will post 9.01 EPS for the current year.

Steel Dynamics Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 10th. Shareholders of record on Tuesday, March 31st were given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 1.0%. This is a positive change from Steel Dynamics's previous quarterly dividend of $0.50. The ex-dividend date was Tuesday, March 31st. Steel Dynamics's dividend payout ratio (DPR) is presently 26.47%.

Institutional Investors Weigh In On Steel Dynamics

Hedge funds have recently modified their holdings of the stock. Prosperity Bancshares Inc purchased a new stake in shares of Steel Dynamics during the fourth quarter valued at $25,000. MV Capital Management Inc. purchased a new position in shares of Steel Dynamics in the fourth quarter worth approximately $27,000. Sound Income Strategies LLC increased its position in shares of Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company's stock worth $28,000 after acquiring an additional 150 shares in the last quarter. Cornerstone Planning Group LLC increased its position in shares of Steel Dynamics by 1,636.4% in the third quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company's stock worth $27,000 after acquiring an additional 180 shares in the last quarter. Finally, DV Equities LLC purchased a new position in shares of Steel Dynamics in the fourth quarter worth approximately $33,000. 82.41% of the stock is owned by hedge funds and other institutional investors.

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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