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

Steel Dynamics (NASDAQ:STLD) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

Several other brokerages have also weighed in on STLD. Jefferies Financial Group upped their target price on Steel Dynamics from $180.00 to $190.00 and gave the stock a “buy” rating in a research report on Wednesday, December 10th. Morgan Stanley reissued 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. KeyCorp restated an “overweight” rating and issued a $190.00 price objective on shares of Steel Dynamics in a report on Wednesday, January 7th. JPMorgan Chase & Co. raised their price objective on shares of Steel Dynamics from $165.00 to $190.00 and gave the company a “neutral” rating in a research report on Friday, December 5th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Steel Dynamics in a research note on Monday, December 29th. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $184.22.

Steel Dynamics Trading Down 4.4%

Shares of NASDAQ:STLD opened at $181.61 on Friday. The firm has a fifty day moving average of $184.10 and a two-hundred day moving average of $162.09. The firm has a market capitalization of $26.31 billion, a P/E ratio of 22.67, a price-to-earnings-growth ratio of 0.51 and a beta of 1.43. Steel Dynamics has a 12-month low of $103.17 and a 12-month high of $208.47. 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 (NASDAQ:STLD) last posted its quarterly earnings results on Tuesday, January 27th. The basic materials company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.72 by $0.10. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The business had revenue of $4.41 billion for the quarter, compared to analysts’ expectations of $4.62 billion. During the same period in the previous year, the company posted $1.36 EPS. Steel Dynamics’s revenue was up 14.0% on a year-over-year basis. On average, equities analysts expect that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of STLD. Prosperity Bancshares Inc acquired a new position in Steel Dynamics during the 4th quarter worth $25,000. MV Capital Management Inc. acquired a new stake in shares of Steel Dynamics in the fourth quarter valued at about $27,000. Sound Income Strategies LLC increased its stake in shares of Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock worth $28,000 after purchasing an additional 150 shares during the period. Cornerstone Planning Group LLC increased its stake in shares of Steel Dynamics by 1,636.4% in the third quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company’s stock worth $27,000 after purchasing an additional 180 shares during the period. Finally, DV Equities LLC acquired a new position in shares of Steel Dynamics during the 4th quarter worth about $33,000. 82.41% of the stock is currently owned by institutional investors and hedge funds.

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.