Zacks Investment Research upgraded shares of Steel Dynamics (NASDAQ:STLD) from a hold rating to a buy rating in a research note published on Wednesday morning. Zacks Investment Research currently has $52.00 target price on the basic materials company’s stock.
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.”
A number of other analysts have also weighed in on STLD. BidaskClub lowered shares of Steel Dynamics from a strong-buy rating to a buy rating in a report on Wednesday, June 13th. ValuEngine lowered shares of Steel Dynamics from a buy rating to a hold rating in a report on Saturday, June 16th. Jefferies Financial Group reiterated a buy rating and set a $58.00 target price on shares of Steel Dynamics in a report on Wednesday, July 25th. Bank of America increased their target price 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. Finally, Morgan Stanley upgraded shares of Steel Dynamics from an equal weight rating to an overweight rating and increased their target price for the stock from $50.00 to $52.00 in a report on Monday, August 27th. Three analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Steel Dynamics presently has a consensus rating of Buy and an average price target of $54.08.
Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings data on Monday, July 23rd. The basic materials company reported $1.53 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.49 by $0.04. The firm had revenue of $3.09 billion for the quarter, compared to analysts’ expectations of $2.91 billion. Steel Dynamics had a return on equity of 26.90% and a net margin of 10.01%. The company’s revenue for the quarter was up 29.3% compared to the same quarter last year. During the same period last year, the firm earned $0.63 earnings per share. analysts anticipate that Steel Dynamics will post 5.57 EPS for the current year.
Steel Dynamics announced that its Board of Directors has approved a stock buyback program on Tuesday, September 4th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the basic materials company to repurchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 12th. Shareholders of record on Sunday, September 30th will be issued a $0.1875 dividend. The ex-dividend date of this dividend is Thursday, September 27th. This represents a $0.75 annualized dividend and a yield of 1.60%. Steel Dynamics’s dividend payout ratio (DPR) is presently 28.30%.
A number of institutional investors and hedge funds have recently modified their holdings of STLD. Qube Research & Technologies Ltd purchased a new stake in Steel Dynamics in the second quarter worth about $119,000. Smithfield Trust Co. lifted its holdings in Steel Dynamics by 2,523.1% in the first quarter. Smithfield Trust Co. now owns 3,410 shares of the basic materials company’s stock worth $150,000 after buying an additional 3,280 shares during the period. First Mercantile Trust Co. lifted its holdings in Steel Dynamics by 96.0% in the first quarter. First Mercantile Trust Co. now owns 3,508 shares of the basic materials company’s stock worth $155,000 after buying an additional 1,718 shares during the period. Mount Yale Investment Advisors LLC purchased a new stake in Steel Dynamics in the first quarter worth about $188,000. Finally, Itau Unibanco Holding S.A. purchased a new stake in Steel Dynamics in the second quarter worth about $193,000. Institutional investors and hedge funds own 83.40% of the company’s stock.
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.
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