Steel Dynamics (NASDAQ:STLD) Upgraded by The Goldman Sachs Group to Strong-Buy Rating

The Goldman Sachs Group upgraded shares of Steel Dynamics (NASDAQ:STLD) to a strong-buy rating in a research report released on Wednesday,Zacks.com reports.

A number of other research firms have also weighed in on STLD. Wall Street Zen raised Steel Dynamics from a “hold” rating to a “buy” rating in a research note on Saturday, April 18th. Citigroup raised their target price on Steel Dynamics from $180.00 to $255.00 and gave the stock a “buy” rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded Steel Dynamics from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, June 18th. KeyCorp reissued an “overweight” rating on shares of Steel Dynamics in a research report on Wednesday, July 22nd. Finally, Wells Fargo & Company dropped their price objective on shares of Steel Dynamics from $291.00 to $275.00 and set an “overweight” rating for the company in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Steel Dynamics has an average rating of “Moderate Buy” and a consensus target price of $249.00.

Steel Dynamics Trading Down 2.8%

STLD opened at $252.34 on Wednesday. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.18 and a quick ratio of 1.45. The company’s 50 day simple moving average is $248.00 and its two-hundred day simple moving average is $213.15. Steel Dynamics has a 1-year low of $119.89 and a 1-year high of $288.74. The firm has a market capitalization of $36.52 billion, a price-to-earnings ratio of 22.88, a price-to-earnings-growth ratio of 0.49 and a beta of 1.53.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings results on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.63 by $0.06. Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%.The business had revenue of $6.09 billion during the quarter, compared to analyst estimates of $5.56 billion. During the same period in the prior year, the business earned $2.01 earnings per share. The business’s revenue was up 33.4% compared to the same quarter last year. Analysts expect that Steel Dynamics will post 17.16 EPS for the current fiscal year.

Steel Dynamics Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were given a $0.53 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.8%. Steel Dynamics’s payout ratio is currently 19.22%.

Insider Buying and Selling at Steel Dynamics

In other news, SVP James Stanley Anderson sold 10,000 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $268.70, for a total transaction of $2,687,000.00. Following the completion of the transaction, the senior vice president directly owned 102,837 shares in the company, valued at approximately $27,632,301.90. This represents a 8.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Richard A. Poinsatte sold 2,300 shares of Steel Dynamics stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $234.11, for a total transaction of $538,453.00. Following the completion of the sale, the senior vice president owned 28,618 shares of the company’s stock, valued at $6,699,759.98. This trade represents a 7.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 6.60% of the company’s stock.

Institutional Trading of Steel Dynamics

A number of hedge funds and other institutional investors have recently bought and sold shares of STLD. Life Cycle Investment Partners Ltd purchased a new position in shares of Steel Dynamics in the 4th quarter valued at about $586,702,000. Norges Bank purchased a new stake in Steel Dynamics during the fourth quarter worth approximately $564,590,000. Boston Partners lifted its stake in Steel Dynamics by 147.9% during the fourth quarter. Boston Partners now owns 1,793,630 shares of the basic materials company’s stock worth $303,970,000 after purchasing an additional 1,070,042 shares during the last quarter. Bessemer Group Inc. boosted its holdings in Steel Dynamics by 56,088.1% in the first quarter. Bessemer Group Inc. now owns 542,215 shares of the basic materials company’s stock valued at $97,598,000 after purchasing an additional 541,250 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its holdings in Steel Dynamics by 92.4% in the fourth quarter. Hsbc Holdings PLC now owns 1,030,448 shares of the basic materials company’s stock valued at $174,609,000 after purchasing an additional 494,828 shares in the last quarter. 82.41% of the stock is currently owned by institutional investors and hedge funds.

Steel Dynamics Company Profile

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.