Steel Dynamics, Inc. (NASDAQ:STLD) Given Consensus Recommendation of “Hold” by Analysts

Shares of Steel Dynamics, Inc. (NASDAQ:STLD) have been given a consensus recommendation of “Hold” by the ten research firms that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and five have issued a buy recommendation on the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $182.4444.

Several analysts have recently issued reports on the stock. Wall Street Zen cut shares of Steel Dynamics from a “strong-buy” rating to a “buy” rating in a research note on Saturday, March 7th. Jefferies Financial Group restated a “buy” rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. KeyCorp initiated coverage on Steel Dynamics in a research note on Wednesday, March 25th. They issued an “overweight” rating and a $190.00 price objective on the stock. Wells Fargo & Company dropped their target price on shares of Steel Dynamics from $210.00 to $196.00 and set an “overweight” rating for the company in a research report on Wednesday, March 18th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Steel Dynamics in a report on Monday, December 29th.

Steel Dynamics Stock Up 4.8%

STLD opened at $180.00 on Friday. The stock has a market capitalization of $26.05 billion, a price-to-earnings ratio of 22.47, a price-to-earnings-growth ratio of 0.47 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 debt-to-equity ratio of 0.48, a current ratio of 3.06 and a quick ratio of 1.29. The business has a 50-day moving average of $184.74 and a two-hundred day moving average of $167.60.

Steel Dynamics (NASDAQ:STLD) last released its earnings results on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share (EPS) for the quarter, topping 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 last year, the company earned $1.36 earnings per share. The company’s quarterly revenue was up 14.0% on a year-over-year basis. On average, research analysts expect that Steel Dynamics will post 9.01 earnings per share for the current year.

Steel Dynamics Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 10th. Investors of record on Tuesday, March 31st will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Tuesday, March 31st. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.50. Steel Dynamics’s dividend payout ratio (DPR) is presently 24.97%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in STLD. State Street Corp raised its holdings in shares of Steel Dynamics by 3.3% during the 2nd quarter. State Street Corp now owns 7,300,813 shares of the basic materials company’s stock valued at $938,196,000 after buying an additional 230,582 shares during the period. Capital Research Global Investors grew its position in Steel Dynamics by 0.3% in the fourth quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company’s stock valued at $613,926,000 after acquiring an additional 9,959 shares in the last quarter. Life Cycle Investment Partners Ltd purchased a new stake in shares of Steel Dynamics during the fourth quarter valued at approximately $586,702,000. Norges Bank purchased a new stake in shares of Steel Dynamics during the fourth quarter valued at approximately $564,590,000. Finally, Nordea Investment Management AB lifted its position in shares of Steel Dynamics by 12.1% during the third quarter. Nordea Investment Management AB now owns 2,340,480 shares of the basic materials company’s stock worth $322,518,000 after purchasing an additional 252,108 shares in 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.