Steel Dynamics (NASDAQ:STLD) Upgraded to Strong-Buy at The Goldman Sachs Group

Key Points

• Goldman Sachs upgraded Steel Dynamics to “strong buy,” joining a generally positive analyst outlook. The stock has a “Moderate Buy” consensus rating and an average price target of $249.
• Steel Dynamics reported quarterly EPS of $3.69, exceeding estimates of $3.63, while revenue reached $6.09 billion, up 33.4% year over year and above expectations.
• The shares opened at $252.34, with a market capitalization of approximately $36.52 billion; institutional investors own 82.41% of the company, while recent insider transactions involved executives selling shares.

Steel Dynamics (NASDAQ:STLD - Get Free Report) was upgraded by investment analysts at The Goldman Sachs Group to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports.

A number of other research analysts have also recently commented on the company. Barclays boosted their price objective on Steel Dynamics from $270.00 to $272.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 22nd. Weiss Ratings upgraded Steel Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 18th. BMO Capital Markets boosted their price target on Steel Dynamics from $195.00 to $240.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 22nd. Bank of America decreased their price target on Steel Dynamics from $280.00 to $260.00 and set a "neutral" rating for the company in a report on Thursday, July 9th. Finally, Wells Fargo & Company lowered their price objective on shares of Steel Dynamics from $291.00 to $275.00 and set an "overweight" rating for the company in a research report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $249.00.

Steel Dynamics Price Performance

Steel Dynamics stock opened at $252.34 on Wednesday. The firm has a fifty day moving average of $248.00 and a 200-day moving average of $213.15. Steel Dynamics has a 52-week low of $119.89 and a 52-week high of $288.74. The company has a quick ratio of 1.45, a current ratio of 3.18 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $36.52 billion, a P/E ratio of 22.88, a PEG ratio of 0.49 and a beta of 1.53.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share for the quarter, beating the consensus estimate of $3.63 by $0.06. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The business had revenue of $6.09 billion for the quarter, compared to analyst estimates of $5.56 billion. During the same quarter in the previous year, the business posted $2.01 EPS. The business's quarterly revenue was up 33.4% on a year-over-year basis. As a group, analysts predict that Steel Dynamics will post 17.16 EPS for the current year.

Insider Activity

In related news, SVP Richard A. Poinsatte sold 2,300 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total value of $538,453.00. Following the transaction, the senior vice president owned 28,618 shares in the company, valued at approximately $6,699,759.98. The trade was a 7.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP James Stanley Anderson sold 10,000 shares of the stock in a transaction dated Friday, June 5th. The shares were 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 directly owned 102,837 shares of the company's stock, valued at $27,632,301.90. This represents a 8.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 6.60% of the company's stock.

Institutional Trading of Steel Dynamics

Hedge funds have recently made changes to their positions in the stock. Strs Ohio lifted its position in shares of Steel Dynamics by 7.3% during the fourth quarter. Strs Ohio now owns 153,878 shares of the basic materials company's stock worth $26,075,000 after purchasing an additional 10,519 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its holdings in Steel Dynamics by 3.7% in the fourth 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 during the last quarter. Canada Post Corp Registered Pension Plan raised its stake in Steel Dynamics by 70.5% during the fourth quarter. Canada Post Corp Registered Pension Plan now owns 11,692 shares of the basic materials company's stock valued at $1,981,000 after buying an additional 4,835 shares in the last quarter. Ethic Inc. raised its stake in Steel Dynamics by 56.5% during the fourth quarter. Ethic Inc. now owns 18,548 shares of the basic materials company's stock valued at $3,143,000 after buying an additional 6,695 shares in the last quarter. Finally, Delphi Management Inc. MA lifted its holdings in Steel Dynamics by 399.1% during the 4th quarter. Delphi Management Inc. MA now owns 8,161 shares of the basic materials company's stock worth $1,383,000 after buying an additional 6,526 shares during the last quarter. Institutional investors and hedge funds own 82.41% of the company's stock.

About Steel Dynamics

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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