Steel Dynamics (NASDAQ:STLD) Stock Price Down 5.9% Following Analyst Downgrade

Steel Dynamics, Inc. (NASDAQ:STLD) shares were down 5.9% during trading on Thursday after Wells Fargo & Company lowered their price target on the stock from $293.00 to $291.00. Wells Fargo & Company currently has an overweight rating on the stock. Steel Dynamics traded as low as $252.63 and last traded at $254.2490. Approximately 397,549 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 1,214,812 shares. The stock had previously closed at $270.13.

Several other analysts also recently issued reports on the company. KeyCorp lifted their price target on Steel Dynamics from $190.00 to $241.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. Wall Street Zen raised Steel Dynamics from a “hold” rating to a “buy” rating in a research report on Saturday, April 18th. Jefferies Financial Group reiterated a “buy” rating on shares of Steel Dynamics in a report on Tuesday, March 17th. Weiss Ratings upgraded Steel Dynamics from a “hold (c)” rating to a “buy (b-)” rating in a research note on Wednesday, April 29th. Finally, Citigroup upped their price target on Steel Dynamics from $180.00 to $255.00 and gave the stock a “buy” rating in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Steel Dynamics currently has an average rating of “Moderate Buy” and a consensus target price of $227.18.

Insider Buying and Selling at Steel Dynamics

In other news, Director Kenneth W. Cornew sold 5,000 shares of the stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the completion of the transaction, the director directly owned 31,299 shares in the company, valued at $7,038,206.13. This represents a 13.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Richard A. Poinsatte sold 2,300 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total value of $538,453.00. Following the completion of the transaction, the senior vice president owned 28,618 shares of the company’s stock, valued at $6,699,759.98. The trade was a 7.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 22,125 shares of company stock valued at $5,438,227. Corporate insiders own 6.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Prosperity Bancshares Inc bought a new position in shares of Steel Dynamics in the fourth quarter valued at $25,000. MV Capital Management Inc. bought a new stake in Steel Dynamics during the fourth quarter worth $27,000. Sound Income Strategies LLC raised its position in Steel Dynamics by 1,500.0% during the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock worth $28,000 after acquiring an additional 150 shares in the last quarter. Cedar Mountain Advisors LLC acquired a new stake in Steel Dynamics in the first quarter valued at $31,000. Finally, DV Equities LLC bought a new position in shares of Steel Dynamics in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 82.41% of the company’s stock.

Steel Dynamics Trading Down 6.4%

The company has a market cap of $36.60 billion, a P/E ratio of 27.05, a P/E/G ratio of 0.55 and a beta of 1.50. The business’s 50-day moving average price is $236.34 and its 200 day moving average price is $199.19. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13.

Steel Dynamics (NASDAQ:STLD) last issued its 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). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The firm had revenue of $5.20 billion during the quarter, compared to analyst estimates of $5.39 billion. During the same quarter last year, the business posted $1.44 earnings per share. The company’s revenue for the quarter was up 19.1% on a year-over-year basis. As a group, analysts expect that Steel Dynamics, Inc. will post 15.85 earnings per share for the current year.

Steel Dynamics Announces Dividend

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

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.