Steel Dynamics (NASDAQ:STLD) Hits New 1-Year High – Here’s Why

Steel Dynamics, Inc. (NASDAQ:STLD)’s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $168.47 and last traded at $168.66, with a volume of 42589 shares. The stock had previously closed at $167.83.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. BMO Capital Markets upped their price target on Steel Dynamics from $155.00 to $167.00 and gave the company an “outperform” rating in a report on Wednesday, October 22nd. JPMorgan Chase & Co. lifted their target price on Steel Dynamics from $150.00 to $160.00 and gave the stock a “neutral” rating in a report on Monday, October 13th. KeyCorp upped their target price on Steel Dynamics from $152.00 to $165.00 and gave the company an “overweight” rating in a report on Monday, October 27th. Jefferies Financial Group increased their price target on Steel Dynamics from $165.00 to $180.00 and gave the company a “buy” rating in a research report on Wednesday, October 22nd. Finally, Citigroup lifted their price target on Steel Dynamics from $150.00 to $180.00 and gave the stock a “buy” rating in a research note on Wednesday, October 29th. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Steel Dynamics currently has a consensus rating of “Moderate Buy” and an average price target of $170.44.

Steel Dynamics Trading Up 0.2%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.34 and a current ratio of 3.11. The stock has a market cap of $24.55 billion, a price-to-earnings ratio of 22.24, a price-to-earnings-growth ratio of 1.39 and a beta of 1.45. The company’s 50 day simple moving average is $150.65 and its two-hundred day simple moving average is $137.65.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly 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 business had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.74 billion. During the same period in the previous year, the company posted $2.05 EPS. Steel Dynamics’s revenue was up 11.2% on a year-over-year basis. Research analysts expect that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Wednesday, December 31st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.2%. Steel Dynamics’s dividend payout ratio (DPR) is 26.49%.

Insider Activity

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

Institutional Trading of Steel Dynamics

Institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc grew its position in Steel Dynamics by 13.2% during the third quarter. Versant Capital Management Inc now owns 548 shares of the basic materials company’s stock worth $76,000 after buying an additional 64 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Steel Dynamics by 4.1% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the basic materials company’s stock worth $246,000 after purchasing an additional 70 shares in the last quarter. Bartlett & CO. Wealth Management LLC increased its position in shares of Steel Dynamics by 24.8% in the third quarter. Bartlett & CO. Wealth Management LLC now owns 377 shares of the basic materials company’s stock worth $53,000 after purchasing an additional 75 shares during the last quarter. Harbour Capital Advisors LLC lifted its position in Steel Dynamics by 0.5% during the second quarter. Harbour Capital Advisors LLC now owns 14,828 shares of the basic materials company’s stock valued at $1,988,000 after purchasing an additional 80 shares during the last quarter. Finally, Choreo LLC grew 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 worth $353,000 after buying an additional 80 shares in the last quarter. 82.41% of the stock is currently owned by institutional investors and hedge funds.

About Steel Dynamics

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.