Steel Dynamics (NASDAQ:STLD) Hits New 52-Week High – Here’s Why

Steel Dynamics, Inc. (NASDAQ:STLD) reached a new 52-week high during trading on Monday . The company traded as high as $185.79 and last traded at $186.0450, with a volume of 616523 shares trading hands. The stock had previously closed at $179.57.

Analyst Upgrades and Downgrades

STLD has been the topic of several research reports. JPMorgan Chase & Co. upped their price objective on Steel Dynamics from $165.00 to $190.00 and gave the company a “neutral” rating in a research note on Friday, December 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Steel Dynamics in a research report on Monday, December 29th. KeyCorp reissued an “overweight” rating and set a $190.00 target price on shares of Steel Dynamics in a research note on Wednesday, January 7th. Wall Street Zen upgraded Steel Dynamics from a “hold” rating to a “strong-buy” rating in a research report on Saturday. Finally, Wells Fargo & Company raised their target price on Steel Dynamics from $172.00 to $190.00 and gave the company an “overweight” rating in a research note on Monday, December 15th. Five equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, Steel Dynamics has an average rating of “Hold” and an average price target of $182.00.

Steel Dynamics Price Performance

The company has a quick ratio of 1.29, a current ratio of 3.06 and a debt-to-equity ratio of 0.48. The stock’s 50 day moving average price is $171.89 and its two-hundred day moving average price is $150.70. The firm has a market capitalization of $27.24 billion, a price-to-earnings ratio of 23.29, a P/E/G ratio of 0.75 and a beta of 1.46.

Steel Dynamics (NASDAQ:STLD) last issued its earnings results on Monday, January 26th. The basic materials company reported $1.82 EPS for the quarter, beating analysts’ consensus estimates of $1.72 by $0.10. Steel Dynamics had a return on equity of 13.56% and a net margin of 6.52%.The firm had revenue of $4.41 billion for the quarter, compared to the consensus estimate of $4.62 billion. During the same quarter in the previous year, the company posted $1.36 earnings per share. The business’s quarterly revenue was up 14.0% compared to the same quarter last year. Analysts anticipate that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Wednesday, December 31st were paid a $0.50 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $2.00 dividend on an annualized basis and a yield of 1.1%. Steel Dynamics’s payout ratio is 24.97%.

Institutional Investors Weigh In On Steel Dynamics

A number of large investors have recently bought and sold shares of the business. Sound Income Strategies LLC lifted its position in shares of Steel Dynamics by 1,500.0% in the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock worth $28,000 after buying an additional 150 shares during the last quarter. Cornerstone Planning Group LLC boosted its holdings in shares of Steel Dynamics by 1,636.4% during the 3rd quarter. Cornerstone Planning Group LLC now owns 191 shares of the basic materials company’s stock worth $27,000 after buying an additional 180 shares during the period. Torren Management LLC bought a new position in Steel Dynamics in the 4th quarter worth $34,000. Trust Co. of Toledo NA OH bought a new stake in Steel Dynamics during the 2nd quarter valued at approximately $30,000. Finally, Nvest Wealth Strategies Inc. acquired a new stake in Steel Dynamics in the 4th quarter valued at approximately $42,000. 82.41% of the stock is currently owned by 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.