Steel Dynamics, Inc. (NASDAQ:STLD) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Steel Dynamics, Inc. (NASDAQ:STLD) has been assigned a consensus rating of “Moderate Buy” from the twelve analysts that are currently covering the company, Marketbeat.com reports. Four investment analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $249.00.

A number of analysts have commented on the stock. Morgan Stanley cut their price target on shares of Steel Dynamics from $270.00 to $260.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 22nd. Weiss Ratings raised Steel Dynamics from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, June 18th. The Goldman Sachs Group assumed coverage on Steel Dynamics in a research note on Wednesday. They issued a “buy” rating and a $300.00 price objective on the stock. Bank of America cut their target price on Steel Dynamics from $280.00 to $260.00 and set a “neutral” rating on the stock in a research report on Thursday, July 9th. Finally, Barclays raised their target price on Steel Dynamics from $270.00 to $272.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 22nd.

Insider Activity at Steel Dynamics

In other news, SVP James Stanley Anderson sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the completion of the sale, the senior vice president owned 102,837 shares of the company’s stock, valued at $27,632,301.90. This trade represents a 8.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP Richard A. Poinsatte sold 2,300 shares of Steel Dynamics stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total transaction of $538,453.00. Following the completion of the sale, the senior vice president owned 28,618 shares of the company’s stock, valued at $6,699,759.98. This represents a 7.44% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Steel Dynamics

Several institutional investors have recently made changes to their positions in the stock. Prosperity Bancshares Inc bought a new position in shares of Steel Dynamics during the 4th quarter worth about $25,000. MV Capital Management Inc. bought a new stake in Steel Dynamics in the 4th quarter valued at about $27,000. Sound Income Strategies LLC raised 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 buying an additional 150 shares during the period. Cedar Mountain Advisors LLC acquired a new position in Steel Dynamics during the 1st quarter worth approximately $31,000. Finally, DV Equities LLC bought a new position in Steel Dynamics in the fourth quarter worth approximately $33,000. Institutional investors and hedge funds own 82.41% of the company’s stock.

Steel Dynamics Trading Down 2.8%

NASDAQ:STLD opened at $252.34 on Thursday. The firm’s fifty day moving average is $248.00 and its 200-day moving average is $213.15. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.45 and a current ratio of 3.18. Steel Dynamics has a 52 week low of $119.89 and a 52 week high of $288.74. The firm has a market cap of $36.52 billion, a P/E ratio of 22.88, a P/E/G ratio of 0.49 and a beta of 1.53.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings data on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share for the quarter, topping the consensus estimate of $3.63 by $0.06. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The company had revenue of $6.09 billion during the quarter, compared to analysts’ expectations of $5.56 billion. During the same period in the prior year, the company posted $2.01 earnings per share. Steel Dynamics’s revenue for the quarter was up 33.4% compared to the same quarter last year. Equities analysts expect that Steel Dynamics will post 17.16 earnings per share for the current year.

Steel Dynamics Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Tuesday, June 30th. Steel Dynamics’s dividend payout ratio is presently 19.22%.

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.