Steel Dynamics (NASDAQ:STLD) Hits New 12-Month High – What’s Next?

Steel Dynamics, Inc. (NASDAQ:STLD)’s stock price hit a new 52-week high on Wednesday . The stock traded as high as $178.94 and last traded at $178.1170, with a volume of 182181 shares. The stock had previously closed at $171.81.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. The Goldman Sachs Group set a $172.00 target price on shares of Steel Dynamics and gave the company a “neutral” rating in a report on Friday, October 31st. Jefferies Financial Group upped their price objective on Steel Dynamics from $180.00 to $190.00 and gave the stock a “buy” rating in a research note on Wednesday, December 10th. Wells Fargo & Company lifted their target price on Steel Dynamics from $172.00 to $190.00 and gave the company an “overweight” rating in a research report on Monday, December 15th. Weiss Ratings restated a “hold (c+)” rating on shares of Steel Dynamics in a research report on Monday, December 29th. Finally, BMO Capital Markets raised their price objective on Steel Dynamics from $155.00 to $167.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 22nd. Five research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Steel Dynamics currently has a consensus rating of “Hold” and a consensus price target of $182.00.

Steel Dynamics Stock Up 4.1%

The company has a current ratio of 3.11, a quick ratio of 1.47 and a debt-to-equity ratio of 0.43. The company has a 50 day simple moving average of $168.27 and a two-hundred day simple moving average of $148.18. The firm has a market capitalization of $26.13 billion, a P/E ratio of 23.68, a P/E/G ratio of 0.72 and a beta of 1.48.

Steel Dynamics (NASDAQ:STLD) last released its earnings results on Tuesday, October 21st. The basic materials company reported $2.74 EPS for the quarter, topping the consensus estimate of $2.63 by $0.11. The firm had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.74 billion. Steel Dynamics had a net margin of 6.39% and a return on equity of 12.89%. The company’s quarterly revenue was up 11.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.05 earnings per share. On average, equities analysts predict that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, December 31st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. Steel Dynamics’s dividend payout ratio (DPR) is presently 26.49%.

Insider Activity

In related news, SVP Miguel Alvarez sold 8,251 shares of the business’s stock in a transaction dated 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 sale, the senior vice president directly owned 117,068 shares in the company, valued at approximately $19,057,499.72. The trade was a 6.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 6.30% of the company’s stock.

Institutional Trading of Steel Dynamics

Hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC increased its position in Steel Dynamics by 307.5% in the first quarter. NewEdge Advisors LLC now owns 819 shares of the basic materials company’s stock worth $102,000 after purchasing an additional 618 shares during the last quarter. Acadian Asset Management LLC increased its holdings in shares of Steel Dynamics by 82.7% in the 1st quarter. Acadian Asset Management LLC now owns 3,485 shares of the basic materials company’s stock worth $435,000 after buying an additional 1,578 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its position in shares of Steel Dynamics by 19.9% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 32,988 shares of the basic materials company’s stock valued at $4,395,000 after buying an additional 5,477 shares in the last quarter. Assenagon Asset Management S.A. raised its position in shares of Steel Dynamics by 4.3% during the 2nd quarter. Assenagon Asset Management S.A. now owns 26,089 shares of the basic materials company’s stock valued at $3,340,000 after buying an additional 1,064 shares in the last quarter. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Steel Dynamics by 133.1% in the 2nd quarter. Farther Finance Advisors LLC now owns 3,578 shares of the basic materials company’s stock valued at $458,000 after acquiring an additional 2,043 shares during the last quarter. 82.41% of the stock is owned by hedge funds and other institutional investors.

About Steel Dynamics

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.