Steel Dynamics (NASDAQ:STLD) Hits New 1-Year High – Should You Buy?

Steel Dynamics, Inc. (NASDAQ:STLD)’s stock price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $178.94 and last traded at $178.1170, with a volume of 182181 shares trading hands. The stock had previously closed at $171.81.

Wall Street Analyst Weigh In

STLD has been the topic of a number of research reports. The Goldman Sachs Group set a $172.00 target price on shares of Steel Dynamics and gave the stock a “neutral” rating in a research note on Friday, October 31st. Wells Fargo & Company lifted their target price on shares of Steel Dynamics from $172.00 to $190.00 and gave the stock an “overweight” rating in a research note on Monday, December 15th. Morgan Stanley reaffirmed an “equal weight” rating and set a $194.00 target price (up previously from $173.00) on shares of Steel Dynamics in a research note on Friday, January 9th. BMO Capital Markets increased their price objective on shares of Steel Dynamics from $155.00 to $167.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 22nd. Finally, JPMorgan Chase & Co. upped their price target on Steel Dynamics from $165.00 to $190.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Five equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Steel Dynamics currently has a consensus rating of “Hold” and an average price target of $182.00.

Steel Dynamics Trading Down 0.6%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.47 and a current ratio of 3.11. The firm has a market capitalization of $26.11 billion, a P/E ratio of 23.68, a PEG ratio of 0.75 and a beta of 1.48. The firm has a 50 day simple moving average of $169.20 and a two-hundred day simple moving average of $148.62.

Steel Dynamics (NASDAQ:STLD) last announced its earnings results on Tuesday, October 21st. The basic materials company reported $2.74 EPS for the quarter, beating the consensus estimate of $2.63 by $0.11. Steel Dynamics had a net margin of 6.39% and a return on equity of 12.89%. The company had revenue of $4.83 billion during the quarter, compared to the consensus estimate of $4.74 billion. During the same quarter in the prior year, the company posted $2.05 earnings per share. The firm’s revenue for the quarter was up 11.2% on a year-over-year basis. Equities research analysts forecast that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Wednesday, December 31st were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $2.00 annualized dividend and a dividend yield of 1.1%. Steel Dynamics’s dividend payout ratio (DPR) is currently 26.49%.

Insider Activity

In related news, SVP Miguel Alvarez sold 8,251 shares of the stock in a transaction that occurred on Wednesday, October 29th. The stock was sold at an average price of $162.79, for a total transaction of $1,343,180.29. Following the completion of the sale, the senior vice president directly owned 117,068 shares of the company’s stock, valued at approximately $19,057,499.72. This trade represents a 6.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 6.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Steel Dynamics

Several institutional investors have recently added to or reduced their stakes in STLD. Versant Capital Management Inc boosted its stake in 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 acquiring an additional 64 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of Steel Dynamics by 4.1% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the basic materials company’s stock valued at $246,000 after buying an additional 70 shares during the last quarter. Bartlett & CO. Wealth Management LLC grew its stake in shares of Steel Dynamics by 24.8% during the 3rd quarter. Bartlett & CO. Wealth Management LLC now owns 377 shares of the basic materials company’s stock worth $53,000 after acquiring an additional 75 shares during the period. Choreo LLC raised its stake in Steel Dynamics by 3.3% in the 3rd quarter. Choreo LLC now owns 2,521 shares of the basic materials company’s stock valued at $353,000 after acquiring an additional 80 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC lifted its holdings in Steel Dynamics by 2.4% during the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 3,468 shares of the basic materials company’s stock valued at $484,000 after purchasing an additional 80 shares during the last quarter. Institutional investors own 82.41% of the company’s stock.

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.