Steel Dynamics, Inc. (NASDAQ:STLD) – Investment analysts at KeyCorp upped their FY2018 earnings per share estimates for shares of Steel Dynamics in a research report issued on Sunday, September 9th, Zacks Investment Research reports. KeyCorp analyst P. Gibbs now forecasts that the basic materials company will post earnings of $5.44 per share for the year, up from their prior estimate of $5.15. KeyCorp also issued estimates for Steel Dynamics’ FY2019 earnings at $3.55 EPS.
Steel Dynamics (NASDAQ:STLD) last posted its earnings results on Monday, July 23rd. The basic materials company reported $1.53 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.49 by $0.04. The firm had revenue of $3.09 billion during the quarter, compared to analyst estimates of $2.91 billion. Steel Dynamics had a net margin of 10.01% and a return on equity of 26.90%. The business’s revenue was up 29.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.63 EPS.
STLD has been the subject of several other research reports. Zacks Investment Research upgraded shares of Steel Dynamics from a “hold” rating to a “buy” rating and set a $53.00 price target for the company in a research report on Tuesday, June 19th. Bank of America increased their price target on shares of Steel Dynamics from $54.00 to $56.00 and gave the company a “buy” rating in a research report on Wednesday, July 25th. Finally, BidaskClub lowered shares of Steel Dynamics from a “buy” rating to a “hold” rating in a research report on Thursday, August 2nd. Four analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $54.08.
STLD traded down $0.34 during trading on Wednesday, hitting $45.41. 2,652,649 shares of the company traded hands, compared to its average volume of 2,255,969. The firm has a market cap of $10.61 billion, a P/E ratio of 17.14, a PEG ratio of 0.68 and a beta of 1.29. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.92 and a current ratio of 3.61. Steel Dynamics has a one year low of $35.40 and a one year high of $52.10.
Large investors have recently modified their holdings of the business. Wells Fargo & Company MN lifted its holdings in shares of Steel Dynamics by 5.1% in the first quarter. Wells Fargo & Company MN now owns 1,700,582 shares of the basic materials company’s stock worth $75,199,000 after buying an additional 81,896 shares in the last quarter. Commerce Bank purchased a new stake in shares of Steel Dynamics in the first quarter worth about $201,000. Victory Capital Management Inc. lifted its holdings in shares of Steel Dynamics by 1,180.3% in the first quarter. Victory Capital Management Inc. now owns 430,512 shares of the basic materials company’s stock worth $19,037,000 after buying an additional 396,886 shares in the last quarter. M&T Bank Corp lifted its holdings in shares of Steel Dynamics by 98.1% in the first quarter. M&T Bank Corp now owns 40,237 shares of the basic materials company’s stock worth $1,780,000 after buying an additional 19,928 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. lifted its holdings in shares of Steel Dynamics by 15.2% in the first quarter. Robeco Institutional Asset Management B.V. now owns 110,603 shares of the basic materials company’s stock worth $4,890,000 after buying an additional 14,579 shares in the last quarter. Hedge funds and other institutional investors own 83.43% of the company’s stock.
In other Steel Dynamics news, insider Christopher A. Graham sold 10,800 shares of the stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $47.61, for a total transaction of $514,188.00. Following the completion of the transaction, the insider now owns 26,087 shares in the company, valued at $1,242,002.07. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 4.40% of the stock is owned by company insiders.
Steel Dynamics announced that its Board of Directors has initiated a share repurchase program on Tuesday, September 4th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the basic materials company to purchase up to 6.8% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Friday, October 12th. Shareholders of record on Sunday, September 30th will be given a dividend of $0.1875 per share. The ex-dividend date of this dividend is Thursday, September 27th. This represents a $0.75 dividend on an annualized basis and a yield of 1.65%. Steel Dynamics’s dividend payout ratio is presently 28.30%.
Steel Dynamics Company Profile
Steel Dynamics, Inc, together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars.
Further Reading: Return on Investment (ROI) Defined, Explained
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