Steel Dynamics (NASDAQ:STLD) Hits New 1-Year High – What’s Next?

Steel Dynamics, Inc. (NASDAQ:STLD) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $243.74 and last traded at $243.17, with a volume of 23801 shares changing hands. The stock had previously closed at $240.03.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on STLD shares. Weiss Ratings raised Steel Dynamics from a “hold (c)” rating to a “buy (b-)” rating in a research report on Wednesday, April 29th. Jefferies Financial Group reissued a “buy” rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. BMO Capital Markets boosted their target price on Steel Dynamics from $195.00 to $240.00 and gave the company an “outperform” rating in a research note on Wednesday, April 22nd. JPMorgan Chase & Co. raised their price target on shares of Steel Dynamics from $192.00 to $205.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 14th. Finally, Bank of America downgraded shares of Steel Dynamics from a “buy” rating to a “neutral” rating and set a $250.00 price objective on the stock. in a report on Thursday, April 30th. One research 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat, Steel Dynamics presently has a consensus rating of “Moderate Buy” and an average price target of $219.36.

Steel Dynamics Price Performance

The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. The company’s 50-day simple moving average is $207.16 and its 200-day simple moving average is $187.22. The stock has a market capitalization of $37.37 billion, a price-to-earnings ratio of 27.62, a P/E/G ratio of 0.53 and a beta of 1.48.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.79 by ($0.01). The company had revenue of $5.20 billion during 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 company’s quarterly revenue was up 19.1% on a year-over-year basis. During the same quarter last year, the firm posted $1.44 earnings per share. Research analysts forecast that Steel Dynamics, Inc. will post 14.77 earnings per share for the current fiscal year.

Steel Dynamics Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Steel Dynamics’s dividend payout ratio (DPR) is 22.67%.

Insider Buying and Selling at Steel Dynamics

In related news, SVP Miguel Alvarez sold 4,825 shares of the business’s stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total value of $1,088,423.50. Following the sale, the senior vice president owned 122,257 shares of the company’s stock, valued at $27,578,734.06. The trade was a 3.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Kenneth W. Cornew sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the transaction, the director owned 31,299 shares of the company’s stock, valued at approximately $7,038,206.13. The trade was a 13.77% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 12,125 shares of company stock worth $2,751,227. 6.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Steel Dynamics

Large investors have recently added to or reduced their stakes in the business. Capital Research Global Investors boosted its holdings in Steel Dynamics by 0.3% during the 4th quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company’s stock worth $613,926,000 after acquiring an additional 9,959 shares during the last quarter. Life Cycle Investment Partners Ltd purchased a new stake in shares of Steel Dynamics in the fourth quarter valued at about $586,702,000. Norges Bank bought a new position in shares of Steel Dynamics during the fourth quarter valued at about $564,590,000. Robeco Institutional Asset Management B.V. boosted its holdings in Steel Dynamics by 3.7% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,008,199 shares of the basic materials company’s stock worth $340,289,000 after purchasing an additional 72,122 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in Steel Dynamics by 6.3% during the fourth quarter. Invesco Ltd. now owns 1,965,092 shares of the basic materials company’s stock worth $332,985,000 after purchasing an additional 116,379 shares during the last quarter. Institutional investors own 82.41% of the company’s stock.

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.