Steel Dynamics (NASDAQ:STLD) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Steel Dynamics (NASDAQ:STLD) from a hold rating to a buy rating in a report issued on Saturday.

Several other brokerages have also commented on STLD. Wells Fargo & Company upped their price target on shares of Steel Dynamics from $196.00 to $207.00 and gave the stock an “overweight” rating in a research report on Wednesday. KeyCorp started coverage on shares of Steel Dynamics in a research report on Wednesday, March 25th. They set an “overweight” rating and a $190.00 price target for the company. Jefferies Financial Group reissued a “buy” rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. JPMorgan Chase & Co. increased their price objective on shares of Steel Dynamics from $192.00 to $205.00 and gave the stock a “neutral” rating in a research report on Tuesday, April 14th. Finally, Morgan Stanley reissued an “underperform” rating and issued a $190.00 price objective on shares of Steel Dynamics in a research report on Tuesday, March 17th. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $185.11.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $200.32 on Friday. Steel Dynamics has a one year low of $112.72 and a one year high of $208.47. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.29 and a current ratio of 3.06. The company has a 50 day moving average price of $185.69 and a 200 day moving average price of $171.97. The firm has a market capitalization of $28.99 billion, a price-to-earnings ratio of 25.01, a price-to-earnings-growth ratio of 0.52 and a beta of 1.39.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings results on Tuesday, January 27th. The basic materials company reported $1.82 EPS for the quarter, topping the consensus estimate of $1.72 by $0.10. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The firm had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.62 billion. During the same quarter in the prior year, the business posted $1.36 earnings per share. Steel Dynamics’s revenue for the quarter was up 14.0% compared to the same quarter last year. Sell-side analysts anticipate that Steel Dynamics will post 9.01 EPS for the current year.

Steel Dynamics Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st were given a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This is an increase from Steel Dynamics’s previous quarterly dividend of $0.50. This represents a $2.12 annualized dividend and a dividend yield of 1.1%. Steel Dynamics’s dividend payout ratio (DPR) is currently 26.47%.

Institutional Investors Weigh In On Steel Dynamics

Several large investors have recently made changes to their positions in STLD. Prosperity Bancshares Inc purchased a new position in shares of Steel Dynamics in the fourth quarter valued at $25,000. MV Capital Management Inc. purchased a new stake in Steel Dynamics during the 4th quarter worth $27,000. Sound Income Strategies LLC lifted its holdings in Steel Dynamics by 1,500.0% in the 4th quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock worth $28,000 after buying an additional 150 shares in the last quarter. Cornerstone Planning Group LLC lifted its holdings in Steel Dynamics by 1,636.4% in the 3rd quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company’s stock worth $27,000 after buying an additional 180 shares in the last quarter. Finally, DV Equities LLC purchased a new position in Steel Dynamics in the 4th quarter valued at about $33,000. 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.