Steel Dynamics, Inc. (NASDAQ:STLD) Stock Has Consensus Target Price of $275.17 According to Brokerages

Shares of Steel Dynamics, Inc. (NASDAQ:STLD) have been given a consensus rating of “Moderate Buy” by the thirteen brokerages that are covering the stock, Marketbeat reports. Four equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $275.17.

Several equities research analysts recently issued reports on the stock. Barclays set a $280.00 target price on shares of Steel Dynamics in a research report on Friday, October 23rd. BMO Capital Markets cut their price objective on Steel Dynamics from $296.00 to $290.00 and set an “outperform” rating on the stock in a report on Tuesday, September 29th. BNP Paribas Exane increased their target price on shares of Steel Dynamics from $275.00 to $276.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 21st. The Goldman Sachs Group reiterated a “buy” rating and issued a $299.00 price target (down from $301.00) on shares of Steel Dynamics in a report on Tuesday, October 20th. Finally, JPMorgan Chase & Co. cut their target price on shares of Steel Dynamics from $272.00 to $260.00 and set a “neutral” rating on the stock in a report on Friday, October 9th.

Insider Buying and Selling

In other Steel Dynamics news, EVP Barry Schneider sold 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 3rd. The shares were sold at an average price of $248.91, for a total value of $12,445,500.00. Following the sale, the executive vice president owned 196,399 shares in the company, valued at approximately $48,885,675.09. This trade represents a 20.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Steel Dynamics

Hedge funds and other institutional investors have recently made changes to their positions in the business. Meeder Asset Management Inc. acquired a new stake in Steel Dynamics in the 2nd quarter valued at approximately $26,000. Wealth Enhancement Trust Services Inc. raised its stake in Steel Dynamics by 1,200.0% during the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 117 shares of the basic materials company’s stock valued at $26,000 after acquiring an additional 108 shares in the last quarter. NBH Bank acquired a new position in Steel Dynamics during the 2nd quarter worth $31,000. City State Bank acquired a new position in shares of Steel Dynamics during the third quarter valued at $32,000. Finally, IFG Advisory LLC acquired a new position in shares of Steel Dynamics during the third quarter valued at $33,000. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Steel Dynamics Stock Up 2.1%

STLD stock opened at $227.56 on Friday. The company has a 50 day moving average price of $238.23 and a two-hundred day moving average price of $225.13. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.48 and a current ratio of 3.14. The stock has a market capitalization of $32.36 billion, a P/E ratio of 16.79, a PEG ratio of 0.34 and a beta of 1.45. Steel Dynamics has a one year low of $150.22 and a one year high of $288.74.

Steel Dynamics (NASDAQ:STLD) last released its earnings results on Monday, October 19th. The basic materials company reported $5.26 EPS for the quarter, missing the consensus estimate of $5.48 by ($0.22). The business had revenue of $6.51 billion during the quarter, compared to analyst estimates of $6.43 billion. Steel Dynamics had a net margin of 8.82% and a return on equity of 21.57%. The business’s revenue for the quarter was up 34.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.74 earnings per share. As a group, sell-side analysts expect that Steel Dynamics will post 18.12 EPS for the current year.

Steel Dynamics declared that its board has initiated a share repurchase plan on Monday, November 9th that permits the company to repurchase $3 billion in shares. This buyback authorization permits the basic materials company to repurchase up to 8.8% of its stock through open market purchases. Share buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Steel Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 8th. Shareholders of record on Thursday, December 31st will be paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, December 31st. Steel Dynamics’s payout ratio is presently 15.65%.

About Steel Dynamics

Steel Dynamics, Inc is a U.S.-based steel producer and metals recycler founded in 1993. The company operates electric-arc-furnace steel mills and produces flat-rolled, structural, engineered bar, merchant bar and rail products for customers across a range of industries.

Its businesses also include metals recycling, steel fabrication and aluminum operations. Through these activities, Steel Dynamics collects and processes scrap metal, manufactures steel components and supplies products used in construction, automotive manufacturing, energy and other markets.

Headquartered in Fort Wayne, Indiana, the company serves customers primarily in the United States and Mexico.