Steel Dynamics (NASDAQ:STLD) Shares Down 8.2% – Time to Sell?

Shares of Steel Dynamics, Inc. (NASDAQ:STLD) fell 8.2% during trading on Wednesday . The stock traded as low as $236.46 and last traded at $229.3260. Approximately 678,336 shares changed hands during trading, a decline of 45% from the average daily volume of 1,225,574 shares. The stock had previously closed at $249.81.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. UBS Group lifted their target price on shares of Steel Dynamics from $165.00 to $276.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. The Goldman Sachs Group began coverage on shares of Steel Dynamics in a research report on Wednesday, July 29th. They set a “buy” rating and a $300.00 price target for the company. BMO Capital Markets raised their price objective on Steel Dynamics from $195.00 to $240.00 and gave the company an “outperform” rating in a research note on Wednesday, April 22nd. Morgan Stanley decreased their price objective on Steel Dynamics from $270.00 to $260.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 22nd. Finally, Barclays boosted their target price on Steel Dynamics from $270.00 to $272.00 and gave the company an “overweight” rating in a research note on Wednesday, July 22nd. Eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $259.09.

Steel Dynamics Trading Down 10.5%

The stock has a market capitalization of $32.04 billion, a P/E ratio of 20.39, a P/E/G ratio of 0.48 and a beta of 1.52. The firm’s 50 day moving average price is $248.10 and its 200 day moving average price is $221.61. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.18 and a quick ratio of 1.45.

Steel Dynamics (NASDAQ:STLD) last posted its earnings results on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.63 by $0.06. Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%.The company had revenue of $6.09 billion for the quarter, compared to analysts’ expectations of $5.56 billion. During the same period last year, the firm earned $2.01 earnings per share. Steel Dynamics’s quarterly revenue was up 33.4% on a year-over-year basis. As a group, equities research analysts expect that Steel Dynamics, Inc. will post 17.16 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, October 9th. Stockholders of record on Wednesday, September 30th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, September 30th. Steel Dynamics’s dividend payout ratio (DPR) is currently 19.22%.

Insider Buying and Selling at Steel Dynamics

In other news, SVP James Stanley Anderson sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the transaction, the senior vice president directly owned 102,837 shares of the company’s stock, valued at approximately $27,632,301.90. The trade was a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 6.60% of the company’s stock.

Institutional Trading of Steel Dynamics

Several large investors have recently added to or reduced their stakes in the stock. Prosperity Bancshares Inc bought a new position in Steel Dynamics in the 4th quarter worth $25,000. Meeder Asset Management Inc. bought a new stake in shares of Steel Dynamics during the 2nd quarter valued at about $26,000. MV Capital Management Inc. bought a new stake in shares of Steel Dynamics during the 4th quarter valued at about $27,000. Cedar Mountain Advisors LLC purchased a new position in shares of Steel Dynamics during the first quarter valued at about $31,000. Finally, DV Equities LLC purchased a new position in shares of Steel Dynamics during the fourth quarter valued at about $33,000. 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.