Steel Dynamics (NASDAQ:STLD) Shares Gap Up on Analyst Upgrade

Key Points

• Steel Dynamics' share price rose significantly after Wells Fargo upgraded its price target from $143 to $150, leading to an opening price of $138.35.
• Analysts generally have a positive outlook on Steel Dynamics, with an average rating of "Moderate Buy" and a consensus price target of $149.40.
• The company has announced a quarterly dividend of $0.50, set to be paid on October 10th, reflecting an annualized yield of 1.4% and a payout ratio of 29.15%.

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report)'s share price gapped up before the market opened on Tuesday after Wells Fargo & Company raised their price target on the stock from $143.00 to $150.00. The stock had previously closed at $131.58, but opened at $138.35. Wells Fargo & Company currently has an overweight rating on the stock. Steel Dynamics shares last traded at $138.06, with a volume of 315,334 shares changing hands.

Other research analysts also recently issued reports about the stock. JPMorgan Chase & Co. increased their price target on shares of Steel Dynamics from $138.00 to $150.00 and gave the stock a "neutral" rating in a research report on Monday, July 14th. Morgan Stanley raised their price objective on shares of Steel Dynamics from $140.00 to $145.00 and gave the company an "overweight" rating in a research report on Friday, June 20th. Nine research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $149.40.

Insiders Place Their Bets

In related news, SVP Christopher A. Graham sold 12,000 shares of the firm's stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $126.71, for a total transaction of $1,520,520.00. Following the completion of the transaction, the senior vice president directly owned 66,738 shares of the company's stock, valued at approximately $8,456,371.98. This trade represents a 15.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On Steel Dynamics

Institutional investors have recently bought and sold shares of the stock. Cary Street Partners Investment Advisory LLC grew its stake in Steel Dynamics by 493.9% during the first quarter. Cary Street Partners Investment Advisory LLC now owns 196 shares of the basic materials company's stock valued at $25,000 after acquiring an additional 163 shares in the last quarter. Financial Gravity Asset Management Inc. purchased a new position in Steel Dynamics during the first quarter valued at $25,000. Trust Co. of Toledo NA OH purchased a new position in Steel Dynamics during the second quarter valued at $30,000. Zions Bancorporation National Association UT purchased a new position in Steel Dynamics during the first quarter valued at $32,000. Finally, WPG Advisers LLC purchased a new position in Steel Dynamics during the first quarter valued at $32,000. 82.41% of the stock is owned by hedge funds and other institutional investors.

Steel Dynamics Stock Up 5.1%

The company has a market capitalization of $20.36 billion, a PE ratio of 20.15, a PEG ratio of 1.06 and a beta of 1.40. The company's 50 day moving average is $129.55 and its two-hundred day moving average is $127.97. The company has a quick ratio of 1.34, a current ratio of 3.13 and a debt-to-equity ratio of 0.43.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last issued its quarterly earnings data on Monday, July 21st. The basic materials company reported $2.01 EPS for the quarter, missing analysts' consensus estimates of $2.05 by ($0.04). Steel Dynamics had a return on equity of 11.88% and a net margin of 6.07%.The business had revenue of $4.57 billion during the quarter, compared to analysts' expectations of $4.82 billion. During the same period in the previous year, the business earned $2.72 earnings per share. The business's quarterly revenue was down 1.5% on a year-over-year basis. On average, analysts anticipate that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Tuesday, September 30th. Steel Dynamics's dividend payout ratio (DPR) is presently 29.15%.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.

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