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

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

Several other equities analysts have also recently issued reports on STLD. The Goldman Sachs Group set a $172.00 price objective on Steel Dynamics and gave the company a “neutral” rating in a report on Friday, October 31st. BMO Capital Markets raised their price target on shares of Steel Dynamics from $155.00 to $167.00 and gave the company an “outperform” rating in a research note on Wednesday, October 22nd. Morgan Stanley restated an “equal weight” rating and issued a $194.00 price objective (up previously from $173.00) on shares of Steel Dynamics in a report on Friday, January 9th. KeyCorp restated an “overweight” rating and issued a $190.00 price target on shares of Steel Dynamics in a research report on Wednesday, January 7th. Finally, Wells Fargo & Company raised their price objective on shares of Steel Dynamics from $172.00 to $190.00 and gave the stock an “overweight” rating in a research report on Monday, December 15th. Five analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Steel Dynamics presently has a consensus rating of “Hold” and an average price target of $182.00.

Steel Dynamics Stock Performance

STLD stock opened at $179.57 on Friday. The business has a 50-day moving average price of $171.89 and a 200 day moving average price of $150.54. Steel Dynamics has a 1-year low of $103.17 and a 1-year high of $185.56. The company has a market capitalization of $26.22 billion, a P/E ratio of 22.42, a PEG ratio of 0.76 and a beta of 1.48. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.06 and a quick ratio of 1.47.

Steel Dynamics (NASDAQ:STLD) last announced its earnings results on Monday, January 26th. The basic materials company reported $1.82 EPS for the quarter, topping analysts’ consensus estimates of $1.72 by $0.10. The business had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.62 billion. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The firm’s revenue was up 14.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.36 earnings per share. As a group, equities research analysts forecast that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Steel Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, December 31st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. Steel Dynamics’s payout ratio is 24.97%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC grew its position in shares of Steel Dynamics by 1,636.4% during 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 during the last quarter. Sound Income Strategies LLC boosted its stake in Steel Dynamics by 1,500.0% during the 4th quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock worth $28,000 after purchasing an additional 150 shares during the period. Trust Co. of Toledo NA OH purchased a new position in Steel Dynamics during the 2nd quarter worth $30,000. Rosenberg Matthew Hamilton increased its stake in Steel Dynamics by 306.2% in the second quarter. Rosenberg Matthew Hamilton now owns 264 shares of the basic materials company’s stock valued at $34,000 after purchasing an additional 199 shares during the period. Finally, Torren Management LLC purchased a new stake in shares of Steel Dynamics in the fourth quarter valued at about $34,000. Hedge funds and other institutional investors 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.