JPMorgan Chase & Co. Cuts Steel Dynamics (NASDAQ:STLD) Price Target to $256.00

Steel Dynamics (NASDAQ:STLD) had its price objective cut by JPMorgan Chase & Co. from $262.00 to $256.00 in a report issued on Wednesday morning,Benzinga reports. They currently have a neutral rating on the basic materials company’s stock.

Several other brokerages have also recently weighed in on STLD. Jefferies Financial Group reiterated a “buy” rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. KeyCorp raised their target price on Steel Dynamics from $241.00 to $262.00 and gave the stock an “overweight” rating in a report on Wednesday, June 24th. Morgan Stanley lifted their target price on Steel Dynamics from $227.00 to $270.00 and gave the company an “equal weight” rating in a research report on Monday, June 22nd. Wall Street Zen raised Steel Dynamics from a “hold” rating to a “buy” rating in a report on Saturday, April 18th. Finally, Citigroup upped their price target on Steel Dynamics from $180.00 to $255.00 and gave the stock a “buy” rating in a research report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $239.18.

Steel Dynamics Price Performance

Shares of NASDAQ:STLD opened at $235.51 on Wednesday. The company has a quick ratio of 1.33, a current ratio of 3.13 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $34.08 billion, a PE ratio of 25.19, a price-to-earnings-growth ratio of 0.44 and a beta of 1.53. The firm’s 50 day moving average price is $245.95 and its 200-day moving average price is $208.80. Steel Dynamics has a twelve month low of $119.89 and a twelve month high of $288.74.

Steel Dynamics (NASDAQ:STLD) last announced its earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.79 by ($0.01). Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The business had revenue of $5.20 billion for the quarter, compared to the consensus estimate of $5.39 billion. During the same quarter last year, the firm posted $1.44 earnings per share. The business’s quarterly revenue was up 19.1% compared to the same quarter last year. Equities research analysts expect that Steel Dynamics will post 17.27 EPS for the current year.

Steel Dynamics Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were paid a $0.53 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. Steel Dynamics’s dividend payout ratio is 22.67%.

Insider Activity

In related news, Director Kenneth W. Cornew sold 5,000 shares of the company’s stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $224.87, for a total value of $1,124,350.00. Following the completion of the transaction, the director owned 31,299 shares of the company’s stock, valued at approximately $7,038,206.13. This represents a 13.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP James Stanley Anderson sold 10,000 shares of the company’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the completion of the transaction, the senior vice president directly owned 102,837 shares of the company’s stock, valued at $27,632,301.90. This represents a 8.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 22,125 shares of company stock valued at $5,438,226 over the last 90 days. Company insiders own 6.60% of the company’s stock.

Hedge Funds Weigh In On Steel Dynamics

Several large investors have recently made changes to their positions in the business. NewEdge Advisors LLC raised its stake in Steel Dynamics by 307.5% during the 1st quarter. NewEdge Advisors LLC now owns 819 shares of the basic materials company’s stock valued at $102,000 after purchasing an additional 618 shares during the period. Acadian Asset Management LLC boosted its stake in 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 purchasing an additional 1,578 shares during the period. Jump Financial LLC purchased a new stake in Steel Dynamics during the 2nd quarter valued at approximately $1,019,000. Qube Research & Technologies Ltd purchased a new stake in Steel Dynamics during the 2nd quarter valued at approximately $48,746,000. Finally, Sei Investments Co. raised its position in shares of Steel Dynamics by 7.9% during the second quarter. Sei Investments Co. now owns 105,051 shares of the basic materials company’s stock valued at $13,447,000 after buying an additional 7,712 shares during the last quarter. 82.41% of the stock is currently 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.