Steel Dynamics (NASDAQ:STLD) Issues Earnings Results

Steel Dynamics (NASDAQ:STLD – Get Rating) posted its earnings results on Wednesday. The basic materials company reported $4.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.60 by $0.77, RTT News reports. Steel Dynamics had a return on equity of 65.26% and a net margin of 18.99%. The firm had revenue of $4.83 billion during the quarter, compared to analysts’ expectations of $4.77 billion. During the same period in the previous year, the firm earned $5.78 earnings per share. The company’s revenue was down 9.1% on a year-over-year basis.

Steel Dynamics Stock Up 2.2 %

STLD traded up $2.38 on Wednesday, hitting $110.41. 1,947,960 shares of the company were exchanged, compared to its average volume of 1,587,538. Steel Dynamics has a 12 month low of $52.26 and a 12 month high of $113.71. The company has a market cap of $19.38 billion, a PE ratio of 4.79 and a beta of 1.46. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.08 and a current ratio of 3.67. The stock’s fifty day moving average is $104.60 and its 200-day moving average is $89.13.

Steel Dynamics Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 13th. Investors of record on Saturday, December 31st were issued a dividend of $0.34 per share. The ex-dividend date of this dividend was Friday, December 30th. This represents a $1.36 annualized dividend and a yield of 1.23%. Steel Dynamics’s payout ratio is presently 6.00%.

Analyst Ratings Changes

A number of research firms have issued reports on STLD. Morgan Stanley boosted their target price on Steel Dynamics from $78.00 to $85.00 and gave the company an “equal weight” rating in a research note on Friday, October 21st. The Goldman Sachs Group upped their price objective on Steel Dynamics from $88.00 to $99.00 and gave the stock a “buy” rating in a research report on Friday, October 21st. Bank of America began coverage on Steel Dynamics in a research report on Wednesday, January 4th. They set a “buy” rating for the company. StockNews.com cut Steel Dynamics from a “buy” rating to a “hold” rating in a research report on Thursday, November 24th. Finally, BMO Capital Markets upped their price objective on Steel Dynamics from $89.00 to $100.00 and gave the stock a “market perform” rating in a research report on Monday, November 14th. Four investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $99.83.

Steel Dynamics announced that its board has initiated a stock repurchase program on Thursday, November 10th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the basic materials company to buy up to 8.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In related news, Director James C. Marcuccilli sold 2,500 shares of the company’s stock in a transaction dated Friday, December 2nd. The stock was sold at an average price of $108.90, for a total transaction of $272,250.00. Following the sale, the director now owns 82,965 shares in the company, valued at $9,034,888.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Steel Dynamics

A number of large investors have recently made changes to their positions in the company. Clearstead Advisors LLC acquired a new stake in shares of Steel Dynamics in the 3rd quarter valued at $35,000. Neuberger Berman Group LLC lifted its stake in shares of Steel Dynamics by 10.1% in the 3rd quarter. Neuberger Berman Group LLC now owns 80,591 shares of the basic materials company’s stock valued at $5,732,000 after acquiring an additional 7,361 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of Steel Dynamics by 0.9% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 26,603 shares of the basic materials company’s stock valued at $1,887,000 after acquiring an additional 226 shares during the last quarter. Centiva Capital LP bought a new position in shares of Steel Dynamics in the 2nd quarter valued at $960,000. Finally, National Pension Service lifted its stake in shares of Steel Dynamics by 3.3% in the 2nd quarter. National Pension Service now owns 382,365 shares of the basic materials company’s stock valued at $25,293,000 after acquiring an additional 12,152 shares during the last quarter. Institutional investors own 79.54% of the company’s stock.

About Steel Dynamics

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Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars.