Steel Dynamics (NASDAQ:STLD) Sets New 1-Year High Following Analyst Upgrade


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Steel Dynamics, Inc. (NASDAQ:STLD)’s share price hit a new 52-week high on Monday after Bank of America upgraded the stock from a neutral rating to a buy rating. Bank of America now has a $61.00 price target on the stock, up from their previous price target of $49.00. Steel Dynamics traded as high as $52.67 and last traded at $52.36, with a volume of 17207 shares trading hands. The stock had previously closed at $51.50.

STLD has been the topic of a number of other reports. The Goldman Sachs Group assumed coverage on Steel Dynamics in a report on Thursday, April 15th. They set a “buy” rating and a $57.00 price objective on the stock. Morgan Stanley boosted their price target on shares of Steel Dynamics from $44.00 to $53.00 and gave the company an “overweight” rating in a research report on Thursday, March 18th. Credit Suisse Group raised their price objective on shares of Steel Dynamics from $52.00 to $55.00 and gave the stock an “outperform” rating in a report on Monday. BMO Capital Markets boosted their target price on Steel Dynamics from $46.00 to $52.00 and gave the stock a “market perform” rating in a report on Thursday, March 18th. They noted that the move was a valuation call. Finally, Zacks Investment Research upgraded Steel Dynamics from a “hold” rating to a “strong-buy” rating and set a $56.00 price objective for the company in a research report on Tuesday, March 16th. One equities research analyst has rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of $46.89.

In related news, Director Keith E. Busse sold 8,035 shares of Steel Dynamics stock in a transaction dated Wednesday, March 10th. The stock was sold at an average price of $49.06, for a total value of $394,197.10. 5.00% of the stock is owned by company insiders.

A number of hedge funds have recently made changes to their positions in the business. LS Investment Advisors LLC grew its holdings in Steel Dynamics by 3.2% during the 4th quarter. LS Investment Advisors LLC now owns 10,629 shares of the basic materials company’s stock worth $392,000 after acquiring an additional 327 shares during the period. Fruth Investment Management boosted its holdings in Steel Dynamics by 4.8% during the fourth quarter. Fruth Investment Management now owns 8,700 shares of the basic materials company’s stock worth $320,000 after buying an additional 400 shares during the last quarter. Sheaff Brock Investment Advisors LLC grew its position in shares of Steel Dynamics by 7.5% during the 4th quarter. Sheaff Brock Investment Advisors LLC now owns 7,699 shares of the basic materials company’s stock worth $284,000 after buying an additional 535 shares during the period. Sei Investments Co. grew its position in shares of Steel Dynamics by 0.5% during the 4th quarter. Sei Investments Co. now owns 115,398 shares of the basic materials company’s stock worth $4,309,000 after buying an additional 546 shares during the period. Finally, Northwest Investment Counselors LLC bought a new stake in shares of Steel Dynamics in the 1st quarter valued at about $28,000. 79.95% of the stock is currently owned by hedge funds and other institutional investors.

The company has a current ratio of 3.28, a quick ratio of 1.91 and a debt-to-equity ratio of 0.65. The firm has a market cap of $10.59 billion, a P/E ratio of 22.08, a price-to-earnings-growth ratio of 1.06 and a beta of 1.40. The firm’s 50 day moving average is $48.92 and its two-hundred day moving average is $39.59.

Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Sunday, April 18th. The basic materials company reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.98 by $0.12. The company had revenue of $3.54 billion during the quarter, compared to analyst estimates of $3.41 billion. Steel Dynamics had a net margin of 5.17% and a return on equity of 13.33%. The firm’s revenue was up 37.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.88 EPS. Analysts predict that Steel Dynamics, Inc. will post 2.63 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, April 16th. Stockholders of record on Wednesday, March 31st were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Tuesday, March 30th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.08%. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.25. Steel Dynamics’s dividend payout ratio (DPR) is currently 33.55%.

Steel Dynamics Company Profile (NASDAQ:STLD)

Steel Dynamics, Inc engages in the manufacture of steel products and metal recycling. It operates through the following segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment consists of sheet products including hot roll, cold roll, and coated steel; long products including structural steel beams, pilings, and standard and premium grade rail; and steel finishing services such as turning, polishing, straightening, chamfering, threading, and precision saw-cutting.

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