Steel Dynamics (NASDAQ:STLD) Board Announces Share Repurchase Plan

Steel Dynamics (NASDAQ:STLD) announced that its Board of Directors has approved a share repurchase program on Monday, November 9th, RTT News reports. The company plans to repurchase $3 billion in shares. This buyback authorization authorizes the basic materials company to buy up to 8.8% of its shares through open market purchases. Share buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Steel Dynamics Stock Performance

Shares of NASDAQ STLD opened at $238.99 on Thursday. The company has a debt-to-equity ratio of 0.43, a current ratio of 3.14 and a quick ratio of 1.48. The stock’s fifty day moving average price is $238.40 and its two-hundred day moving average price is $225.71. Steel Dynamics has a one year low of $151.21 and a one year high of $288.74. The firm has a market cap of $33.99 billion, a price-to-earnings ratio of 17.64, a P/E/G ratio of 0.34 and a beta of 1.45.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings data on Tuesday, October 20th. The basic materials company reported $5.26 earnings per share for the quarter, missing the consensus estimate of $5.48 by ($0.22). The firm had revenue of $6.51 billion for the quarter, compared to the consensus estimate of $6.43 billion. Steel Dynamics had a return on equity of 21.57% and a net margin of 8.82%. The firm’s quarterly revenue was up 34.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.74 EPS. On average, equities analysts forecast that Steel Dynamics will post 18.12 EPS for the current year.

Steel Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 8th. Investors of record on Thursday, December 31st will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. Steel Dynamics’s dividend payout ratio is currently 15.65%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on STLD shares. UBS Group raised their target price on shares of Steel Dynamics from $165.00 to $276.00 and gave the stock a “neutral” rating in a research note on Monday, August 10th. The Goldman Sachs Group reiterated a “buy” rating and issued a $299.00 price target (down from $301.00) on shares of Steel Dynamics in a research note on Tuesday, October 20th. BMO Capital Markets decreased their price target on shares of Steel Dynamics from $296.00 to $290.00 and set an “outperform” rating on the stock in a research note on Tuesday, September 29th. Wall Street Zen cut shares of Steel Dynamics from a “strong-buy” rating to a “buy” rating in a report on Sunday, September 20th. Finally, Wells Fargo & Company raised their price objective on shares of Steel Dynamics from $257.00 to $271.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 21st. Nine equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Steel Dynamics presently has a consensus rating of “Moderate Buy” and an average price target of $275.17.

Insider Transactions at Steel Dynamics

In related news, EVP Barry Schneider sold 50,000 shares of the stock in a transaction that occurred on Tuesday, November 3rd. The stock was sold at an average price of $248.91, for a total transaction of $12,445,500.00. Following the sale, the executive vice president owned 196,399 shares of the company’s stock, valued at $48,885,675.09. This represents a 20.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 6.60% of the stock is owned by corporate insiders.

About Steel Dynamics

Steel Dynamics, Inc. is a U.S.-based steel producer and metals recycler founded in 1993. The company operates electric-arc-furnace steel mills and produces flat-rolled, structural, engineered bar, merchant bar and rail products for customers across a range of industries. Its businesses also include metals recycling, steel fabrication and aluminum operations. Through these activities, Steel Dynamics collects and processes scrap metal, manufactures steel components and supplies products used in construction, automotive manufacturing, energy and other markets.