Steel Dynamics (NASDAQ:STLD) Upgraded to Strong-Buy at Barclays

Barclays upgraded shares of Steel Dynamics (NASDAQ:STLD) to a strong-buy rating in a research report released on Thursday,Zacks.com reports.

Several other equities analysts have also recently commented on the company. Jefferies Financial Group restated a “buy” rating on shares of Steel Dynamics in a research report on Tuesday, March 17th. Wall Street Zen upgraded Steel Dynamics from a “hold” rating to a “buy” rating in a research report on Saturday, April 18th. KeyCorp boosted their price objective on Steel Dynamics from $190.00 to $241.00 and gave the stock an “overweight” rating in a report on Wednesday, April 22nd. BMO Capital Markets upped their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 22nd. Finally, Wells Fargo & Company raised their target price on shares of Steel Dynamics from $207.00 to $235.00 and gave the company an “overweight” rating in a research note on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $219.36.

Steel Dynamics Price Performance

Steel Dynamics stock opened at $240.03 on Thursday. Steel Dynamics has a one year low of $119.89 and a one year high of $243.73. The business has a fifty day moving average price of $202.58 and a 200-day moving average price of $184.97. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.13 and a quick ratio of 1.33. The firm has a market capitalization of $34.74 billion, a P/E ratio of 25.67, a PEG ratio of 0.49 and a beta of 1.48.

Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share for the quarter, missing the consensus estimate of $2.79 by ($0.01). The company had revenue of $5.20 billion for the quarter, compared to the consensus estimate of $5.39 billion. Steel Dynamics had a net margin of 7.22% and a return on equity of 15.54%. The company’s quarterly revenue was up 19.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.44 earnings per share. As a group, equities research analysts forecast that Steel Dynamics will post 14.77 EPS for the current year.

Steel Dynamics Announces Dividend

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

Insider Activity

In other Steel Dynamics news, SVP Richard A. Poinsatte sold 2,300 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total transaction of $538,453.00. Following the transaction, the senior vice president directly owned 28,618 shares in the company, valued at $6,699,759.98. This trade represents a 7.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Miguel Alvarez sold 4,825 shares of Steel Dynamics stock in a transaction that occurred on Thursday, April 23rd. The stock was sold at an average price of $225.58, for a total transaction of $1,088,423.50. Following the transaction, the senior vice president directly owned 122,257 shares in the company, valued at $27,578,734.06. This trade represents a 3.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 12,125 shares of company stock worth $2,751,227. 6.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Steel Dynamics

Several institutional investors have recently bought and sold shares of the stock. Lingohr Asset Management GmbH grew its holdings in Steel Dynamics by 1,284.8% in the 3rd quarter. Lingohr Asset Management GmbH now owns 40,423 shares of the basic materials company’s stock worth $5,636,000 after acquiring an additional 37,504 shares during the last quarter. Mediolanum International Funds Ltd raised its stake in shares of Steel Dynamics by 157.2% during the third quarter. Mediolanum International Funds Ltd now owns 206,140 shares of the basic materials company’s stock valued at $28,629,000 after acquiring an additional 125,981 shares during the last quarter. Fisher Asset Management LLC raised its stake in shares of Steel Dynamics by 47.2% during the third quarter. Fisher Asset Management LLC now owns 34,878 shares of the basic materials company’s stock valued at $4,863,000 after acquiring an additional 11,183 shares during the last quarter. Knights of Columbus Asset Advisors LLC boosted its holdings in shares of Steel Dynamics by 156.3% during the third quarter. Knights of Columbus Asset Advisors LLC now owns 15,935 shares of the basic materials company’s stock worth $2,222,000 after purchasing an additional 9,717 shares during the period. Finally, Concentric Capital Strategies LP purchased a new stake in shares of Steel Dynamics during the third quarter worth about $24,349,000. 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.