Wells Fargo & Company Cuts Steel Dynamics (NASDAQ:STLD) Price Target to $196.00

Steel Dynamics (NASDAQ:STLD) had its target price lowered by Wells Fargo & Company from $210.00 to $196.00 in a report released on Wednesday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the basic materials company’s stock.

A number of other research firms also recently weighed in on STLD. Jefferies Financial Group reiterated a “buy” rating on shares of Steel Dynamics in a research report on Tuesday. JPMorgan Chase & Co. raised their price objective on Steel Dynamics from $165.00 to $190.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Steel Dynamics in a report on Monday, December 29th. Wall Street Zen downgraded Steel Dynamics from a “strong-buy” rating to a “buy” rating in a research report on Saturday, March 7th. Finally, Morgan Stanley reissued an “underperform” rating and set a $190.00 target price on shares of Steel Dynamics in a report on Tuesday. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Steel Dynamics currently has an average rating of “Hold” and a consensus target price of $182.44.

Steel Dynamics Price Performance

NASDAQ:STLD opened at $163.95 on Wednesday. Steel Dynamics has a 52 week low of $103.17 and a 52 week high of $208.47. The firm has a market cap of $23.75 billion, a price-to-earnings ratio of 20.47, a P/E/G ratio of 0.46 and a beta of 1.43. The firm’s 50-day simple moving average is $184.68 and its 200 day simple moving average is $165.13. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.29 and a current ratio of 3.06.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings data on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.72 by $0.10. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The firm had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.62 billion. During the same quarter in the previous year, the firm posted $1.36 EPS. The business’s revenue for the quarter was up 14.0% compared to the same quarter last year. As a group, sell-side analysts predict that Steel Dynamics will post 9.01 earnings per share for the current year.

Steel Dynamics Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.50. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.3%. Steel Dynamics’s payout ratio is currently 24.97%.

Institutional Trading of Steel Dynamics

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

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.