Steel Dynamics (NASDAQ:STLD) Cut to “Buy” at Wall Street Zen

by · The Markets Daily

Wall Street Zen downgraded shares of Steel Dynamics (NASDAQ:STLD – Free Report) from a strong-buy rating to a buy rating in a research report sent to investors on Saturday.

Other equities research analysts have also recently issued research reports about the company. Morgan Stanley restated an “equal weight” rating and issued a $194.00 price target (up from $173.00) on shares of Steel Dynamics in a research note on Friday, January 9th. Wells Fargo & Company lifted their price objective on shares of Steel Dynamics from $190.00 to $210.00 and gave the stock an “overweight” rating in a research report on Monday, March 2nd. Jefferies Financial Group upped their price objective on shares of Steel Dynamics from $180.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, December 10th. Weiss Ratings reissued a “hold (c+)” rating on shares of Steel Dynamics in a research report on Monday, December 29th. Finally, JPMorgan Chase & Co. raised their target price on shares of Steel Dynamics from $165.00 to $190.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Steel Dynamics currently has an average rating of “Moderate Buy” and a consensus target price of $184.22.

Check Out Our Latest Analysis on STLD

Steel Dynamics Price Performance

Shares of NASDAQ STLD opened at $182.36 on Friday. The business’s 50 day moving average price is $184.29 and its two-hundred day moving average price is $162.98. The company has a market cap of $26.42 billion, a PE ratio of 22.77, a price-to-earnings-growth ratio of 0.49 and a beta of 1.43. The company has a quick ratio of 1.29, a current ratio of 3.06 and a debt-to-equity ratio of 0.48. Steel Dynamics has a twelve month low of $103.17 and a twelve month high of $208.47.

Steel Dynamics (NASDAQ:STLD – Get Free Report) last released its quarterly earnings data on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.72 by $0.10. Steel Dynamics had a return on equity of 13.56% and a net margin of 6.52%.The firm had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.62 billion. During the same quarter in the prior year, the company earned $1.36 earnings per share. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. On average, analysts predict that Steel Dynamics will post 9.01 EPS for the current year.

Steel Dynamics Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, April 10th. Investors of record on Tuesday, March 31st will be paid a $0.53 dividend. This is a boost from Steel Dynamics’s previous quarterly dividend of $0.50. The ex-dividend date is Tuesday, March 31st. This represents a $2.12 annualized dividend and a yield of 1.2%. Steel Dynamics’s dividend payout ratio is presently 24.97%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in STLD. State Street Corp boosted its position in shares of Steel Dynamics by 3.3% in the second quarter. State Street Corp now owns 7,300,813 shares of the basic materials company’s stock valued at $938,196,000 after acquiring an additional 230,582 shares during the period. Capital Research Global Investors increased its position in Steel Dynamics by 0.3% during the fourth quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company’s stock worth $613,926,000 after acquiring an additional 9,959 shares during the period. Life Cycle Investment Partners Ltd acquired a new stake in Steel Dynamics in the 4th quarter worth about $586,702,000. Norges Bank acquired a new stake in Steel Dynamics in the 4th quarter worth about $564,590,000. Finally, Nordea Investment Management AB boosted its holdings in Steel Dynamics by 12.1% in the 3rd quarter. Nordea Investment Management AB now owns 2,340,480 shares of the basic materials company’s stock valued at $322,518,000 after purchasing an additional 252,108 shares during the period. Institutional investors own 82.41% of the company’s stock.

About Steel Dynamics

(Get Free Report)

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.

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