K2 Principal Fund L.P. Reduces Position in Steel Dynamics, Inc. $STLD

K2 Principal Fund L.P. lessened its stake in shares of Steel Dynamics, Inc. (NASDAQ:STLD) by 70.0% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 1,200 shares of the basic materials company’s stock after selling 2,800 shares during the period. K2 Principal Fund L.P.’s holdings in Steel Dynamics were worth $203,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Sound Income Strategies LLC grew its position in Steel Dynamics by 1,500.0% during the 4th 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 last quarter. Torren Management LLC purchased a new stake in Steel Dynamics during the 4th quarter worth approximately $34,000. Nvest Wealth Strategies Inc. purchased a new stake in Steel Dynamics during the 4th quarter worth approximately $42,000. Eagle Bay Advisors LLC purchased a new stake in Steel Dynamics during the 4th quarter worth approximately $45,000. Finally, Measured Wealth Private Client Group LLC purchased a new stake in Steel Dynamics during the 3rd quarter worth approximately $46,000. Hedge funds and other institutional investors own 82.41% of the company’s stock.

Insider Activity

In related news, SVP Miguel Alvarez sold 4,825 shares of the stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the sale, the senior vice president directly owned 122,257 shares of the company’s stock, valued at approximately $27,578,734.06. This represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Kenneth W. Cornew sold 5,000 shares of the stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $224.87, for a total transaction of $1,124,350.00. Following the sale, the director directly owned 31,299 shares in the company, valued at $7,038,206.13. This trade represents a 13.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 22,125 shares of company stock valued at $5,438,227. 6.60% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on STLD. Citigroup boosted their target price on shares of Steel Dynamics from $180.00 to $255.00 and gave the stock a “buy” rating in a research report on Wednesday, April 22nd. KeyCorp upped their price objective on shares of Steel Dynamics from $190.00 to $241.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. Jefferies Financial Group reaffirmed a “buy” rating on shares of Steel Dynamics in a report on Tuesday, March 17th. JPMorgan Chase & Co. upped their price objective on shares of Steel Dynamics from $192.00 to $205.00 and gave the company a “neutral” rating in a report on Tuesday, April 14th. Finally, Bank of America downgraded shares of Steel Dynamics from a “buy” rating to a “neutral” rating and set a $250.00 price objective on the stock. in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $224.64.

Steel Dynamics Stock Up 1.1%

STLD stock opened at $282.76 on Friday. The firm’s fifty day simple moving average is $230.74 and its 200-day simple moving average is $196.69. The company has a market capitalization of $40.92 billion, a P/E ratio of 30.24, a price-to-earnings-growth ratio of 0.58 and a beta of 1.50. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. Steel Dynamics, Inc. has a 12 month low of $119.89 and a 12 month high of $285.88.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings data on Tuesday, April 21st. The basic materials company reported $2.78 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 during the quarter, compared to analysts’ expectations of $5.39 billion. During the same period last year, the company earned $1.44 earnings per share. The firm’s revenue was up 19.1% on a year-over-year basis. As a group, equities research analysts forecast that Steel Dynamics, Inc. will post 15.85 earnings per share for the current year.

Steel Dynamics Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.7%. Steel Dynamics’s dividend payout ratio is 22.67%.

Steel Dynamics Company Profile

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.