Steel Dynamics (NASDAQ:STLD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday, September 12th. The brokerage presently has a $52.00 price target on the basic materials company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 14.51% from the stock’s previous close.
According to Zacks, “Steel Dynamics has outperformed the industry over a year. The company should gain from strong demand across automotive and construction markets. The Heartland acquisition has also boosted its shipping capacity and portfolio of value-added products. The company should also benefit from its efforts to expand capacity and upgrade facilities. It also remains committed to deliver value to shareholders leveraging strong cash flows.”
Other equities analysts also recently issued research reports about the stock. BidaskClub downgraded shares of Steel Dynamics from a “hold” rating to a “sell” rating in a report on Thursday, August 9th. Bank of America lifted their price objective on shares of Steel Dynamics from $54.00 to $56.00 and gave the stock a “buy” rating in a report on Wednesday, July 25th. ValuEngine downgraded shares of Steel Dynamics from a “buy” rating to a “hold” rating in a report on Saturday, June 16th. Morgan Stanley raised shares of Steel Dynamics from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $50.00 to $52.00 in a report on Monday, August 27th. Finally, Jefferies Financial Group reissued a “buy” rating and set a $58.00 price target on shares of Steel Dynamics in a report on Wednesday, July 25th. Four investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. Steel Dynamics currently has an average rating of “Buy” and a consensus price target of $54.08.
Shares of STLD traded down $0.34 during mid-day trading on Wednesday, reaching $45.41. 2,652,649 shares of the stock traded hands, compared to its average volume of 2,255,969. Steel Dynamics has a 12-month low of $35.40 and a 12-month high of $52.10. The company has a quick ratio of 1.92, a current ratio of 3.61 and a debt-to-equity ratio of 0.66. The firm has a market capitalization of $10.61 billion, a P/E ratio of 17.14, a P/E/G ratio of 0.68 and a beta of 1.29.
Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings results on Monday, July 23rd. The basic materials company reported $1.53 earnings per share for the quarter, topping analysts’ consensus estimates of $1.49 by $0.04. The business had revenue of $3.09 billion during the quarter, compared to the consensus estimate of $2.91 billion. Steel Dynamics had a net margin of 10.01% and a return on equity of 26.90%. The business’s quarterly revenue was up 29.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.63 earnings per share. Equities analysts expect that Steel Dynamics will post 5.55 earnings per share for the current fiscal year.
Steel Dynamics announced that its Board of Directors has approved a stock repurchase program on Tuesday, September 4th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the basic materials company to repurchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.
In other Steel Dynamics news, insider Christopher A. Graham sold 10,800 shares of the business’s stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $47.61, for a total value of $514,188.00. Following the sale, the insider now directly owns 26,087 shares in the company, valued at $1,242,002.07. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 4.40% of the stock is currently owned by insiders.
Institutional investors and hedge funds have recently modified their holdings of the stock. Qube Research & Technologies Ltd purchased a new position in Steel Dynamics in the 2nd quarter worth about $119,000. Smithfield Trust Co. increased its stake in Steel Dynamics by 2,523.1% in the 1st quarter. Smithfield Trust Co. now owns 3,410 shares of the basic materials company’s stock worth $150,000 after purchasing an additional 3,280 shares in the last quarter. First Mercantile Trust Co. increased its stake in Steel Dynamics by 96.0% in the 1st quarter. First Mercantile Trust Co. now owns 3,508 shares of the basic materials company’s stock worth $155,000 after purchasing an additional 1,718 shares in the last quarter. Mount Yale Investment Advisors LLC purchased a new position in Steel Dynamics in the 1st quarter worth about $188,000. Finally, Itau Unibanco Holding S.A. purchased a new position in Steel Dynamics in the 2nd quarter worth about $193,000. 83.43% of the stock is currently owned by hedge funds and other institutional investors.
About Steel Dynamics
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.
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