Steel Dynamics (NASDAQ:STLD) Shares Down 8.2% – Here’s Why

Steel Dynamics, Inc. (NASDAQ:STLD)’s stock price dropped 8.2% during mid-day trading on Wednesday . The company traded as low as $236.46 and last traded at $229.3260. 678,336 shares traded hands during mid-day trading, a decline of 45% from the average session volume of 1,225,574 shares. The stock had previously closed at $249.81.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Bank of America cut their price target on shares of Steel Dynamics from $280.00 to $260.00 and set a “neutral” rating on the stock in a report on Thursday, July 9th. The Goldman Sachs Group initiated coverage on shares of Steel Dynamics in a research report on Wednesday, July 29th. They issued a “buy” rating and a $300.00 target price for the company. UBS Group upped their target price on shares of Steel Dynamics from $165.00 to $276.00 and gave the company a “neutral” rating in a research note on Monday, August 10th. KeyCorp restated an “overweight” rating on shares of Steel Dynamics in a research note on Wednesday, July 22nd. Finally, JPMorgan Chase & Co. increased their price target on shares of Steel Dynamics from $256.00 to $260.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 22nd. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $259.09.

Steel Dynamics Stock Up 3.1%

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 stock’s fifty day simple moving average is $246.14 and its two-hundred day simple moving average is $222.23. The company has a market capitalization of $32.37 billion, a price-to-earnings ratio of 20.48, a PEG ratio of 0.44 and a beta of 1.52.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings data on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share for the quarter, topping the consensus estimate of $3.63 by $0.06. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The firm had revenue of $6.09 billion for the quarter, compared to analyst estimates of $5.56 billion. During the same quarter in the prior year, the business earned $2.01 earnings per share. Steel Dynamics’s quarterly revenue was up 33.4% on a year-over-year basis. On average, sell-side analysts predict that Steel Dynamics, Inc. will post 17.16 earnings per share for the current fiscal year.

Steel Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, September 30th. Steel Dynamics’s dividend payout ratio is presently 19.22%.

Insider Activity

In related news, SVP James Stanley Anderson sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $268.70, for a total value of $2,687,000.00. Following the sale, the senior vice president owned 102,837 shares of the company’s stock, valued at approximately $27,632,301.90. This trade represents a 8.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 6.60% of the company’s stock.

Institutional Investors Weigh In On Steel Dynamics

Several large investors have recently added to or reduced their stakes in STLD. BlackRock Inc. bought a new position in shares of Steel Dynamics during the second quarter worth about $2,844,501,000. Capital Research Global Investors lifted its position in Steel Dynamics by 0.3% in the 4th quarter. Capital Research Global Investors now owns 3,623,054 shares of the basic materials company’s stock valued at $613,926,000 after purchasing an additional 9,959 shares during the last quarter. Life Cycle Investment Partners Ltd bought a new stake in Steel Dynamics in the 4th quarter valued at about $586,702,000. Norges Bank acquired a new position in Steel Dynamics during the 4th quarter valued at about $564,590,000. Finally, Invesco Ltd. boosted its stake in Steel Dynamics by 6.3% during the 4th quarter. Invesco Ltd. now owns 1,965,092 shares of the basic materials company’s stock valued at $332,985,000 after purchasing an additional 116,379 shares during the period. 82.41% of the stock is 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.