Steel Dynamics (NASDAQ:STLD) Downgraded to “Sell” Rating by StockNews.com

StockNews.com downgraded shares of Steel Dynamics (NASDAQ:STLD) from a hold rating to a sell rating in a report released on Wednesday.

STLD has been the subject of several other research reports. BNP Paribas raised shares of Steel Dynamics from a “neutral” rating to an “outperform” rating in a report on Friday, January 3rd. KeyCorp raised shares of Steel Dynamics from a “sector weight” rating to an “overweight” rating and set a $155.00 target price for the company in a research note on Tuesday, February 11th. UBS Group reiterated a “neutral” rating and issued a $149.00 price target (up from $145.00) on shares of Steel Dynamics in a report on Thursday, December 12th. The Goldman Sachs Group assumed coverage on Steel Dynamics in a research report on Monday, December 2nd. They set a “neutral” rating and a $155.00 price objective for the company. Finally, JPMorgan Chase & Co. decreased their price objective on Steel Dynamics from $134.00 to $132.00 and set a “neutral” rating on the stock in a report on Friday, January 17th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $146.22.

Steel Dynamics Stock Performance

Shares of STLD opened at $133.48 on Wednesday. Steel Dynamics has a 52 week low of $104.60 and a 52 week high of $155.56. The company has a quick ratio of 1.08, a current ratio of 2.53 and a debt-to-equity ratio of 0.32. The stock has a market cap of $20.32 billion, a price-to-earnings ratio of 13.62, a PEG ratio of 1.05 and a beta of 1.35. The business has a 50-day simple moving average of $124.64 and a two-hundred day simple moving average of $127.12.

Steel Dynamics (NASDAQ:STLD) last released its earnings results on Wednesday, January 22nd. The basic materials company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.33). Steel Dynamics had a return on equity of 17.32% and a net margin of 8.76%. During the same quarter in the prior year, the firm posted $2.61 EPS. On average, analysts expect that Steel Dynamics will post 9.01 EPS for the current year.

Steel Dynamics announced that its board has initiated a stock buyback program on Monday, February 24th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the basic materials company to buy up to 7.4% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Steel Dynamics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 11th. Shareholders of record on Monday, March 31st will be given a dividend of $0.50 per share. This is a boost from Steel Dynamics’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Monday, March 31st. This represents a $2.00 dividend on an annualized basis and a yield of 1.50%. Steel Dynamics’s payout ratio is 20.41%.

Insider Buying and Selling

In other Steel Dynamics news, SVP Glenn Pushis sold 23,649 shares of the firm’s stock in a transaction dated Tuesday, February 11th. The shares were sold at an average price of $134.67, for a total value of $3,184,810.83. Following the completion of the sale, the senior vice president now owns 122,140 shares of the company’s stock, valued at $16,448,593.80. This trade represents a 16.22 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 6.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Steel Dynamics

Large investors have recently bought and sold shares of the business. Wilmington Savings Fund Society FSB bought a new stake in shares of Steel Dynamics during the third quarter worth $25,000. ORG Wealth Partners LLC purchased a new position in Steel Dynamics in the 4th quarter worth about $28,000. Private Trust Co. NA lifted its holdings in Steel Dynamics by 532.6% during the 3rd quarter. Private Trust Co. NA now owns 291 shares of the basic materials company’s stock valued at $37,000 after buying an additional 245 shares in the last quarter. IAG Wealth Partners LLC purchased a new stake in Steel Dynamics in the 4th quarter valued at about $39,000. Finally, Investment Management Corp VA ADV bought a new position in Steel Dynamics in the 4th quarter worth about $40,000. Hedge funds and other institutional investors own 82.41% of the company’s stock.

Steel Dynamics Company Profile

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.