Steel Dynamics (NASDAQ:STLD) Trading Down 5.9% Following Analyst Downgrade

Steel Dynamics, Inc. (NASDAQ:STLD) shares dropped 5.9% on Thursday after Wells Fargo & Company lowered their price target on the stock from $293.00 to $291.00. Wells Fargo & Company currently has an overweight rating on the stock. Steel Dynamics traded as low as $252.63 and last traded at $254.2490. Approximately 397,549 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 1,214,812 shares. The stock had previously closed at $270.13.

Other equities analysts have also recently issued reports about the stock. Jefferies Financial Group reaffirmed a “buy” rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Morgan Stanley restated an “underperform” rating and set a $190.00 target price on shares of Steel Dynamics in a research note on Tuesday, March 17th. Weiss Ratings raised shares of Steel Dynamics from a “hold (c)” rating to a “buy (b-)” rating in a report on Wednesday, April 29th. KeyCorp upped their price target on shares of Steel Dynamics from $190.00 to $241.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Finally, JPMorgan Chase & Co. increased their price target on shares of Steel Dynamics from $192.00 to $205.00 and gave the company a “neutral” rating in a report on Tuesday, April 14th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Steel Dynamics presently has an average rating of “Moderate Buy” and a consensus price target of $227.18.

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, SVP Richard A. Poinsatte sold 2,300 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $234.11, for a total transaction of $538,453.00. Following the transaction, the senior vice president owned 28,618 shares in the company, valued at $6,699,759.98. This trade represents a 7.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of Steel Dynamics stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total value of $1,124,350.00. Following the sale, the director directly owned 31,299 shares of the company’s stock, valued at $7,038,206.13. This represents a 13.77% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 22,125 shares of company stock valued at $5,438,227. Corporate insiders own 6.60% of the company’s stock.

Institutional Trading of Steel Dynamics

A number of institutional investors have recently bought and sold shares of STLD. Prosperity Bancshares Inc bought a new position in shares of Steel Dynamics during the fourth quarter worth approximately $25,000. MV Capital Management Inc. bought a new stake in shares of Steel Dynamics in the fourth quarter valued at approximately $27,000. Sound Income Strategies LLC boosted its stake in shares of Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock valued at $28,000 after buying an additional 150 shares during the period. Cedar Mountain Advisors LLC acquired a new stake in Steel Dynamics during the first quarter worth approximately $31,000. Finally, DV Equities LLC acquired a new stake in Steel Dynamics during the fourth quarter worth approximately $33,000. Institutional investors own 82.41% of the company’s stock.

Steel Dynamics Stock Performance

The stock has a market cap of $36.60 billion, a P/E ratio of 27.05, a price-to-earnings-growth ratio of 0.55 and a beta of 1.50. The company has a current ratio of 3.13, a quick ratio of 1.33 and a debt-to-equity ratio of 0.46. The stock has a 50 day simple moving average of $236.34 and a 200 day simple moving average of $199.19.

Steel Dynamics (NASDAQ:STLD) last released its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.01). The company had revenue of $5.20 billion for the quarter, compared to the consensus estimate of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The business’s revenue was up 19.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.44 earnings per share. On average, equities analysts expect that Steel Dynamics, Inc. will post 15.85 earnings per share for the current year.

Steel Dynamics Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.12 annualized dividend and a yield of 0.8%. Steel Dynamics’s dividend payout ratio is currently 22.67%.

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.