Steel Dynamics (NASDAQ:STLD) Hits New 12-Month High – Here’s Why

Shares of Steel Dynamics, Inc. (NASDAQ:STLD) hit a new 52-week high during trading on Thursday . The stock traded as high as $175.52 and last traded at $175.8430, with a volume of 210148 shares traded. The stock had previously closed at $172.74.

Wall Street Analysts Forecast Growth

STLD has been the topic of a number of research analyst reports. BMO Capital Markets lifted their price target on shares of Steel Dynamics from $155.00 to $167.00 and gave the company an “outperform” rating in a report on Wednesday, October 22nd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Steel Dynamics in a report on Monday. Morgan Stanley boosted their price target on Steel Dynamics from $145.00 to $173.00 and gave the company an “overweight” rating in a research report on Friday, October 24th. Citigroup raised their price objective on Steel Dynamics from $150.00 to $180.00 and gave the stock a “buy” rating in a report on Wednesday, October 29th. Finally, Wells Fargo & Company lifted their price objective on Steel Dynamics from $172.00 to $190.00 and gave the company an “overweight” rating in a research note on Monday, December 15th. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $176.89.

Steel Dynamics Stock Down 0.2%

The stock has a market capitalization of $25.45 billion, a price-to-earnings ratio of 23.08, a price-to-earnings-growth ratio of 1.17 and a beta of 1.47. The firm has a 50-day moving average of $159.27 and a 200 day moving average of $141.68. The company has a current ratio of 3.11, a quick ratio of 1.47 and a debt-to-equity ratio of 0.43.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings data on Tuesday, October 21st. The basic materials company reported $2.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.63 by $0.11. Steel Dynamics had a net margin of 6.39% and a return on equity of 12.89%. The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.74 billion. During the same quarter last year, the company earned $2.05 earnings per share. Steel Dynamics’s revenue for the quarter was up 11.2% on a year-over-year basis. On average, sell-side analysts anticipate that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Wednesday, December 31st. Steel Dynamics’s payout ratio is presently 26.49%.

Insider Activity

In other news, SVP Miguel Alvarez sold 8,251 shares of the stock in a transaction that occurred on Wednesday, October 29th. The stock was sold at an average price of $162.79, for a total transaction of $1,343,180.29. Following the completion of the transaction, the senior vice president directly owned 117,068 shares in the company, valued at approximately $19,057,499.72. This represents a 6.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 6.30% of the stock is currently owned by insiders.

Institutional Trading of Steel Dynamics

Several institutional investors have recently added to or reduced their stakes in STLD. Allworth Financial LP boosted its position in shares of Steel Dynamics by 119.3% during the 2nd quarter. Allworth Financial LP now owns 11,012 shares of the basic materials company’s stock valued at $1,410,000 after purchasing an additional 5,991 shares in the last quarter. Nomura Asset Management Co. Ltd. raised its holdings in shares of Steel Dynamics by 21.9% in the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 88,558 shares of the basic materials company’s stock worth $11,336,000 after purchasing an additional 15,931 shares in the last quarter. Edgestream Partners L.P. lifted its stake in Steel Dynamics by 477.1% during the second quarter. Edgestream Partners L.P. now owns 32,427 shares of the basic materials company’s stock valued at $4,151,000 after purchasing an additional 26,808 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp boosted its holdings in Steel Dynamics by 1.2% during the second quarter. Mitsubishi UFJ Trust & Banking Corp now owns 163,399 shares of the basic materials company’s stock worth $20,917,000 after buying an additional 1,954 shares in the last quarter. Finally, Korea Investment CORP boosted its holdings in Steel Dynamics by 17.7% during the second quarter. Korea Investment CORP now owns 133,975 shares of the basic materials company’s stock worth $17,150,000 after buying an additional 20,135 shares in the last quarter. 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.