Short Interest in Steel Dynamics, Inc. (NASDAQ:STLD) Declines By 17.5%

Steel Dynamics, Inc. (NASDAQ:STLD) was the target of a significant decline in short interest in the month of February. As of February 27th, there was short interest totaling 3,656,327 shares, a decline of 17.5% from the February 12th total of 4,434,070 shares. Based on an average trading volume of 1,040,576 shares, the days-to-cover ratio is presently 3.5 days. Approximately 2.7% of the shares of the company are short sold. Approximately 2.7% of the shares of the company are short sold. Based on an average trading volume of 1,040,576 shares, the days-to-cover ratio is presently 3.5 days.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Jacobi Capital Management LLC grew its position in Steel Dynamics by 1.6% during the 4th quarter. Jacobi Capital Management LLC now owns 3,533 shares of the basic materials company’s stock worth $599,000 after acquiring an additional 55 shares during the last quarter. Optas LLC grew its holdings in shares of Steel Dynamics by 3.0% during the fourth quarter. Optas LLC now owns 1,979 shares of the basic materials company’s stock worth $335,000 after purchasing an additional 58 shares during the last quarter. Hohimer Wealth Management LLC increased its stake in shares of Steel Dynamics by 1.1% in the fourth quarter. Hohimer Wealth Management LLC now owns 5,708 shares of the basic materials company’s stock valued at $967,000 after buying an additional 61 shares in the last quarter. Versant Capital Management Inc raised its holdings in shares of Steel Dynamics by 13.2% in the third quarter. Versant Capital Management Inc now owns 548 shares of the basic materials company’s stock valued at $76,000 after buying an additional 64 shares during the last quarter. Finally, Wright Investors Service Inc. lifted its position in Steel Dynamics by 1.2% during the 4th quarter. Wright Investors Service Inc. now owns 5,555 shares of the basic materials company’s stock worth $941,000 after buying an additional 64 shares in the last quarter. 82.41% of the stock is owned by institutional investors and hedge funds.

Steel Dynamics Price Performance

Shares of NASDAQ STLD traded up $2.74 during midday trading on Monday, reaching $173.34. 221,583 shares of the company traded hands, compared to its average volume of 1,299,745. Steel Dynamics has a 12 month low of $103.17 and a 12 month high of $208.47. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.29 and a current ratio of 3.06. The stock’s 50-day simple moving average is $184.81 and its 200-day simple moving average is $164.26. The firm has a market cap of $25.11 billion, a PE ratio of 21.63, a PEG ratio of 0.45 and a beta of 1.43.

Steel Dynamics (NASDAQ:STLD) last announced 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. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The business had revenue of $4.41 billion during the quarter, compared to analysts’ expectations of $4.62 billion. During the same quarter last year, the company posted $1.36 EPS. The firm’s revenue for the quarter was up 14.0% on a year-over-year basis. As a group, equities analysts anticipate that Steel Dynamics will post 9.01 earnings per share for the current fiscal year.

Steel Dynamics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.50. This represents a $2.12 annualized dividend and a dividend yield of 1.2%. Steel Dynamics’s dividend payout ratio (DPR) is 24.97%.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. Jefferies Financial Group increased their price target on shares of Steel Dynamics from $180.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, December 10th. Morgan Stanley reiterated an “equal weight” rating and issued a $194.00 target price (up from $173.00) on shares of Steel Dynamics in a research note on Friday, January 9th. Wells Fargo & Company upped their price target on Steel Dynamics from $190.00 to $210.00 and gave the company an “overweight” rating in a report on Monday, March 2nd. Wall Street Zen cut Steel Dynamics from a “strong-buy” rating to a “buy” rating in a research report on Saturday, March 7th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Steel Dynamics in a research note on Monday, December 29th. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Steel Dynamics presently has a consensus rating of “Moderate Buy” and a consensus target price of $184.22.

Steel Dynamics Company Profile

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.