Steel Dynamics (NASDAQ:STLD) Shares Gap Down – What’s Next?

Steel Dynamics, Inc. (NASDAQ:STLD) shares gapped down before the market opened on Friday . The stock had previously closed at $199.51, but opened at $189.00. Steel Dynamics shares last traded at $194.2080, with a volume of 1,011,710 shares traded.

Analyst Ratings Changes

STLD has been the subject of several analyst reports. Wells Fargo & Company upped their target price on Steel Dynamics from $172.00 to $190.00 and gave the company an “overweight” rating in a report on Monday, December 15th. UBS Group set a $165.00 price objective on shares of Steel Dynamics in a research note on Tuesday, November 4th. Wall Street Zen raised shares of Steel Dynamics from a “hold” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Weiss Ratings restated a “hold (c+)” rating on shares of Steel Dynamics in a research report on Monday, December 29th. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $194.00 price objective (up from $173.00) on shares of Steel Dynamics in a research report on Friday, January 9th. Five analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Steel Dynamics has an average rating of “Hold” and an average price target of $182.00.

Steel Dynamics Stock Performance

The firm’s fifty day moving average is $178.05 and its 200 day moving average is $155.23. The firm has a market capitalization of $27.99 billion, a price-to-earnings ratio of 23.93, a PEG ratio of 0.52 and a beta of 1.46. The company has a debt-to-equity ratio of 0.48, a current ratio of 3.06 and a quick ratio of 1.29.

Steel Dynamics (NASDAQ:STLD) last released its earnings results on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.72 by $0.10. The company 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 company’s revenue was up 14.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.36 EPS. On average, analysts predict that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. NewEdge Advisors LLC grew its stake in shares of Steel Dynamics by 307.5% in the 1st quarter. NewEdge Advisors LLC now owns 819 shares of the basic materials company’s stock valued at $102,000 after buying an additional 618 shares in the last quarter. Acadian Asset Management LLC grew its position in Steel Dynamics by 82.7% in the first quarter. Acadian Asset Management LLC now owns 3,485 shares of the basic materials company’s stock worth $435,000 after acquiring an additional 1,578 shares in the last quarter. Blair William & Co. IL increased its stake in shares of Steel Dynamics by 5.8% during the 2nd quarter. Blair William & Co. IL now owns 1,813 shares of the basic materials company’s stock worth $232,000 after purchasing an additional 100 shares during the last quarter. CWM LLC raised its holdings in shares of Steel Dynamics by 176.0% during the 2nd quarter. CWM LLC now owns 22,994 shares of the basic materials company’s stock valued at $2,943,000 after purchasing an additional 14,664 shares in the last quarter. Finally, MGO One Seven LLC raised its holdings in shares of Steel Dynamics by 33.2% during the 2nd quarter. MGO One Seven LLC now owns 2,866 shares of the basic materials company’s stock valued at $367,000 after purchasing an additional 714 shares in the last quarter. 82.41% of the stock is owned by institutional investors and hedge funds.

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.