Morningstar Investment Management LLC Decreases Stake in Steel Dynamics, Inc. $STLD

Morningstar Investment Management LLC lowered its stake in Steel Dynamics, Inc. (NASDAQ:STLD) by 46.6% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 3,711 shares of the basic materials company’s stock after selling 3,244 shares during the quarter. Morningstar Investment Management LLC’s holdings in Steel Dynamics were worth $668,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in STLD. Life Cycle Investment Partners Ltd purchased a new position in shares of Steel Dynamics in the fourth quarter valued at about $586,702,000. Norges Bank bought a new stake in shares of Steel Dynamics in the fourth quarter worth about $564,590,000. Boston Partners increased its holdings in Steel Dynamics by 147.9% during the 4th quarter. Boston Partners now owns 1,793,630 shares of the basic materials company’s stock valued at $303,970,000 after purchasing an additional 1,070,042 shares during the period. Bessemer Group Inc. increased its holdings in Steel Dynamics by 56,088.1% during the 1st quarter. Bessemer Group Inc. now owns 542,215 shares of the basic materials company’s stock valued at $97,598,000 after purchasing an additional 541,250 shares during the period. Finally, Hsbc Holdings PLC raised its position in Steel Dynamics by 92.4% during the 4th quarter. Hsbc Holdings PLC now owns 1,030,448 shares of the basic materials company’s stock valued at $174,609,000 after purchasing an additional 494,828 shares during the last quarter. Hedge funds and other institutional investors own 82.41% of the company’s stock.

Steel Dynamics Price Performance

STLD stock opened at $247.11 on Monday. Steel Dynamics, Inc. has a fifty-two week low of $119.89 and a fifty-two week high of $288.74. The business’s 50 day moving average price is $246.36 and its two-hundred day moving average price is $211.40. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.45 and a current ratio of 3.18. The company has a market capitalization of $35.76 billion, a price-to-earnings ratio of 22.40, a price-to-earnings-growth ratio of 0.47 and a beta of 1.53.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings results on Monday, July 20th. The basic materials company reported $3.69 earnings per share for the quarter, beating the consensus estimate of $3.63 by $0.06. The company had revenue of $6.09 billion for the quarter, compared to analyst estimates of $5.56 billion. Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%.The firm’s revenue was up 33.4% on a year-over-year basis. During the same period in the previous year, the company posted $2.01 earnings per share. As a group, analysts forecast that Steel Dynamics, Inc. will post 17.17 earnings per share for the current fiscal year.

Steel Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were given a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. Steel Dynamics’s dividend payout ratio is currently 19.22%.

Insider Transactions at Steel Dynamics

In related news, SVP Richard A. Poinsatte sold 2,300 shares of the 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 directly owned 28,618 shares in the company, valued at $6,699,759.98. This trade represents a 7.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP James Stanley Anderson sold 10,000 shares of the stock in a transaction dated 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 completion of the transaction, the senior vice president 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 SEC filing for this sale provides additional information. 6.60% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on STLD shares. Weiss Ratings upgraded Steel Dynamics from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, June 18th. Wall Street Zen raised Steel Dynamics from a “hold” rating to a “buy” rating in a research note on Saturday, April 18th. Wells Fargo & Company decreased their target price on Steel Dynamics from $291.00 to $275.00 and set an “overweight” rating for the company in a report on Wednesday. JPMorgan Chase & Co. raised their price target on Steel Dynamics from $256.00 to $260.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 22nd. Finally, Barclays lifted their price target on shares of Steel Dynamics from $270.00 to $272.00 and gave the company an “overweight” rating in a report on Wednesday. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Steel Dynamics has an average rating of “Moderate Buy” and a consensus price target of $237.36.

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.