Steel Dynamics (NASDAQ:STLD) Sets New 1-Year Low - What's Next?
Steel Dynamics (NASDAQ:STLD) reached a new 52-week low of $124.73 during trading, closing at $129.71. Analysts have mixed ratings, with Jefferies upgrading to "buy" and a price target of $145.00. The company reported $1.44 EPS, exceeding estimates, and announced a quarterly dividend of $0.50. A stock repurchase plan of $1.50 billion was initiated, indicating potential undervaluation. Insider trading saw SVP Glenn Pushis sell 23,649 shares. Institutional investors have also modified their holdings recently.
Shares of Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) reached a new 52-week low during trading on Wednesday . The stock traded as low as $124.73 and last traded at $129.71, with a volume of 1501885 shares changing hands. The stock had previously closed at $129.28.
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Analyst Ratings Changes
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A number of brokerages recently issued reports on STLD. Jefferies Financial Group raised shares of Steel Dynamics from a "hold" rating to a "buy" rating and lifted their price objective for the company from $125.00 to $145.00 in a research note on Friday, January 24th. Morgan Stanley set a $140.00 price target on shares of Steel Dynamics and gave the stock an "overweight" rating in a report on Thursday, April 24th. KeyCorp raised Steel Dynamics from a "sector weight" rating to an "overweight" rating and set a $155.00 price target on the stock in a research note on Tuesday, February 11th. Wolfe Research upgraded shares of Steel Dynamics from an "underperform" rating to a "peer perform" rating in a research report on Thursday, February 27th. Finally, UBS Group upgraded Steel Dynamics from a "neutral" rating to a "buy" rating and set a $149.00 price objective for the company in a research report on Monday, March 24th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $147.44.
Read Our Latest Research Report on Steel Dynamics
Steel Dynamics Price Performance
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The business has a 50-day moving average of $123.69 and a 200 day moving average of $128.16. The company has a current ratio of 2.53, a quick ratio of 1.08 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $19.44 billion, a P/E ratio of 13.24, a price-to-earnings-growth ratio of 1.05 and a beta of 1.35.
Steel Dynamics (NASDAQ:STLD - Get Free Report) last released its quarterly earnings results on Tuesday, April 22nd. The basic materials company reported $1.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.40 by $0.04. Steel Dynamics had a return on equity of 17.32% and a net margin of 8.76%. The business had revenue of $4.37 billion during the quarter, compared to the consensus estimate of $4.17 billion. During the same quarter in the previous year, the business earned $3.67 EPS. On average, sell-side analysts predict that Steel Dynamics, Inc. will post 9.01 earnings per share for the current fiscal year.
Steel Dynamics Announces Dividend
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The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 11th. Shareholders of record on Monday, June 30th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 1.54%. The ex-dividend date of this dividend is Monday, June 30th. Steel Dynamics's payout ratio is 26.42%.
Steel Dynamics announced that its Board of Directors has initiated a stock repurchase plan on Monday, February 24th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the basic materials company to purchase up to 7.4% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board of directors believes its stock is undervalued.
Insider Buying and Selling
In related news, SVP Glenn Pushis sold 23,649 shares of Steel Dynamics stock in a transaction dated Tuesday, February 11th. The stock was sold at an average price of $134.67, for a total value of $3,184,810.83. Following the completion of the sale, the senior vice president now owns 122,140 shares of the company's stock, valued at approximately $16,448,593.80. This trade represents a 16.22 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 6.30% of the stock is owned by insiders.
Institutional Trading of Steel Dynamics
Several hedge funds and other institutional investors have recently modified their holdings of STLD. Wilmington Savings Fund Society FSB bought a new stake in shares of Steel Dynamics during the 3rd quarter valued at $25,000. Financial Gravity Asset Management Inc. bought a new position in Steel Dynamics in the first quarter valued at $25,000. ORG Wealth Partners LLC purchased a new position in shares of Steel Dynamics in the 4th quarter worth about $28,000. Grove Bank & Trust grew its position in Steel Dynamics by 194.7% during the first quarter. Grove Bank & Trust now owns 277 shares of the basic materials company's stock valued at $35,000 after acquiring an additional 183 shares during the last quarter. Finally, Wayfinding Financial LLC bought a new stake in shares of Steel Dynamics in the 1st quarter worth approximately $36,000. Institutional investors own 82.41% of the company's stock.
About Steel Dynamics
(Get Free Report)Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.
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