August 23, 2023 – Investment firm MAI Capital Management recently increased its position in Steel Dynamics, Inc. (NASDAQ:STLD) by 61.6% during the first quarter of this year, according to a recent filing with the Securities and Exchange Commission. The company now owns 5,194 shares of Steel Dynamics’ stock, an increase of 1,980 shares from the previous period. At the end of the reporting period, MAI Capital Management’s holdings in Steel Dynamics were valued at $587,000.
Several brokerages have also provided their ratings on STLD. BNP Paribas downgraded Steel Dynamics from an “outperform” rating to a “neutral” rating and set a price objective of $102.00 per share. UBS Group lowered their target price from $110.00 to $100.00 for Steel Dynamics in a previous report. StockNews.com initiated coverage on Steel Dynamics and gave it a “hold” rating on August 17th. JPMorgan Chase & Co. raised their price target from $93.00 to $94.00 and assigned an “underweight” rating to the stock in July. Lastly, Morgan Stanley lifted their target price on Steel Dynamics from $97.00 to $99.00 and assigned an “equal weight” rating to the stock earlier this year.
Currently, there is one analyst who has given STLD a sell rating while eight have assigned hold ratings and one provided a buy rating for the company’s stock as reported by Bloomberg.com in August 2023. The consensus among analysts indicates a “Hold” recommendation with a consensus target price of $108.44.
On Wednesday morning, NASDAQ:STLD opened at $104.85 per share (as per data available on August 23rd). The company maintains a debt-to-equity ratio of 0.35 with current and quick ratios of 4.20 and 2.47, respectively. Steel Dynamics has experienced a range of trading prices over the past year, reaching a low of $69.12 and a high of $136.46. The stock currently fluctuates around its 50-day moving average of $105.04 and its two-hundred day moving average of $107.61. With a market capitalization of $17.37 billion, Steel Dynamics holds a PE ratio of 6.11 and a beta value of 1.50.
Investors will continue to closely monitor Steel Dynamics as the company navigates through various market dynamics and strives to meet its financial targets in an ever-evolving economic landscape.
(Note: This article is based on information as accurate as of August 23, 2023.)
Steel Dynamics, Inc.
STLD
Buy
Updated on: 04/12/2023
Financial Health
Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Institutional Investors and Insiders Show Confidence in Steel Dynamics’ Performance
August 23, 2023 – Steel Dynamics, Inc. (NASDAQ: STLD), a leading basic materials company, has seen changes in its positions from various institutional investors and hedge funds. Empirical Finance LLC increased its stake in Steel Dynamics by 0.8% during the fourth quarter, owning 10,381 shares worth $1,014,000. Wellington Shields & Co. LLC raised its stake by 50% during the same period and now holds 300 shares valued at $29,000. Security Financial Services INC., Regal Investment Advisors LLC, and Massmutual Trust Co. FSB ADV also increased their respective stakes.
The significant increase in ownership among these institutional investors and hedge funds demonstrates their confidence in the company’s performance and future prospects. This growing interest from major financial players highlights Steel Dynamic’s position as an attractive investment opportunity within the industry.
In other news related to insiders’ trading activities, Senior Vice President Christopher A. Graham recently sold 48,000 shares of Steel Dynamics stock on August 15th for a total transaction value of $5,041,440. After this sale, Graham holds around 61,353 shares valued at approximately $6,443,905.59.
Another significant insider sale came from Director Gabriel Shaheen who sold 1,717 shares on July 31st for a total value of $181,658.60. Following the completion of this sale, Shaheen retains around 83,074 shares valued at approximately $8,789,229.20. These sales by corporate insiders represent 6% of the company’s stock.
Analysts from various brokerages have recently weighed in on STLD with different ratings and target prices for the stock. BNP Paribas downgraded Steel Dynamics’ rating from “outperform” to “neutral” while setting a price objective of $102 per share on July 5th. UBS Group, on the other hand, lowered their target price from $110 to $100 on May 5th.
Overall, analysts have given Steel Dynamics a “Hold” rating, with a consensus target price of $108.44 according to Bloomberg.com. This diverse opinion reflects the mixed sentiment regarding the company’s future performance.
Steel Dynamics recently reported its earnings results for the second quarter ending July 20th. The company’s earnings per share came in at $4.81, slightly below the consensus estimate of $4.82. Steel Dynamics’ revenue for the quarter was $5.08 billion compared to analysts’ expectations of $5.51 billion.
Despite falling short of revenue expectations, Steel Dynamics maintained a healthy net margin of 14.66% and a return on equity of 40.44%. It is worth noting that the company’s revenue decreased by 18.2% compared to the same quarter last year when it earned an impressive EPS of $6.73.
Looking ahead, equities research analysts predict that Steel Dynamics will post earnings per share of $16.03 for the current fiscal year. These forecasts suggest confidence in the company’s ability to rebound from its recent decline in revenue.
Additionally, Steel Dynamics recently announced a quarterly dividend payment schedule with a dividend payout ratio of 9.91%. Shareholders of record as of September 30th will receive a dividend of $0.425 per share on October 16th.
Overall, despite challenges faced in recent months, Steel Dynamics continues to attract interest from institutional investors and hedge funds due to its promising long-term prospects within the basic materials industry. The company’s solid financials and strategic position indicate potential future growth opportunities and may explain this continued investor confidence.
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