Steel Dynamics (NASDAQ:STLD) Upgraded to Outperform at BMO Capital Markets

BMO Capital Markets upgraded shares of Steel Dynamics (NASDAQ:STLD) from a market perform rating to an outperform rating in a research note issued to investors on Monday, MarketBeat reports. They currently have $145.00 price objective on the basic materials company’s stock, up from their prior price objective of $135.00.

A number of other equities research analysts have also recently commented on STLD. Morgan Stanley upgraded Steel Dynamics from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $145.00 to $158.00 in a research note on Friday, March 7th. The Goldman Sachs Group assumed coverage on shares of Steel Dynamics in a research note on Monday, December 2nd. They issued a “neutral” rating and a $155.00 target price for the company. UBS Group upgraded shares of Steel Dynamics from a “neutral” rating to a “buy” rating and set a $149.00 price target on the stock in a research note on Monday, March 24th. Wolfe Research upgraded shares of Steel Dynamics from an “underperform” rating to a “peer perform” rating in a research note on Thursday, February 27th. Finally, StockNews.com raised Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Thursday, March 6th. Four analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $149.67.

Steel Dynamics Stock Up 0.9 %

Shares of Steel Dynamics stock opened at $125.08 on Monday. The company has a quick ratio of 1.08, a current ratio of 2.53 and a debt-to-equity ratio of 0.32. The company has a market cap of $18.75 billion, a P/E ratio of 12.76, a PEG ratio of 1.05 and a beta of 1.34. The firm’s 50 day moving average price is $128.45 and its 200-day moving average price is $128.90. Steel Dynamics has a 52-week low of $104.60 and a 52-week high of $155.56.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings results on Wednesday, January 22nd. The basic materials company reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.69 by ($0.33). Steel Dynamics had a return on equity of 17.32% and a net margin of 8.76%. During the same quarter in the previous year, the business earned $2.61 earnings per share. On average, sell-side analysts predict that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 11th. Shareholders of record on Monday, March 31st will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 1.60%. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Monday, March 31st. Steel Dynamics’s dividend payout ratio is presently 20.41%.

Steel Dynamics announced that its board has approved a stock buyback program on Monday, February 24th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the basic materials company to reacquire up to 7.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Insider Activity

In other news, SVP Glenn Pushis sold 23,649 shares of the stock in a transaction dated Tuesday, February 11th. The shares were sold at an average price of $134.67, for a total transaction of $3,184,810.83. Following the sale, the senior vice president now directly owns 122,140 shares of the company’s stock, valued at $16,448,593.80. This represents a 16.22 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 6.30% of the company’s stock.

Hedge Funds Weigh In On Steel Dynamics

A number of large investors have recently bought and sold shares of the business. Wilmington Savings Fund Society FSB acquired a new stake in Steel Dynamics in the third quarter valued at approximately $25,000. ORG Wealth Partners LLC acquired a new stake in Steel Dynamics in the 4th quarter valued at $28,000. IAG Wealth Partners LLC purchased a new stake in Steel Dynamics in the 4th quarter worth $39,000. Investment Management Corp VA ADV purchased a new stake in Steel Dynamics in the 4th quarter worth $40,000. Finally, Avalon Trust Co acquired a new position in Steel Dynamics during the fourth quarter worth $42,000. Institutional investors and hedge funds own 82.41% of the company’s stock.

About Steel Dynamics

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.