Rakuten Investment Management Inc. Buys New Position in Steel Dynamics, Inc. $STLD

Rakuten Investment Management Inc. bought a new position in shares of Steel Dynamics, Inc. (NASDAQ:STLD) in the 2nd quarter, Holdings Channel reports. The fund bought 22,292 shares of the basic materials company’s stock, valued at approximately $5,221,000.

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

Wall Street Analyst Weigh In

STLD has been the subject of a number of research reports. Bank of America reduced their price target on shares of Steel Dynamics from $280.00 to $260.00 and set a “neutral” rating for the company in a report on Thursday, July 9th. UBS Group increased their price objective on shares of Steel Dynamics from $165.00 to $276.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. Morgan Stanley reduced their target price on Steel Dynamics from $270.00 to $260.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 22nd. KeyCorp reaffirmed an “overweight” rating on shares of Steel Dynamics in a research report on Wednesday, July 22nd. Finally, Wells Fargo & Company dropped their price target on Steel Dynamics from $275.00 to $255.00 and set an “overweight” rating on the stock in a research note on Monday, August 24th. Eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Steel Dynamics presently has an average rating of “Moderate Buy” and a consensus price target of $257.27.

Steel Dynamics Stock Performance

STLD opened at $234.66 on Friday. Steel Dynamics, Inc. has a 1-year low of $126.88 and a 1-year high of $288.74. The company has a market cap of $33.63 billion, a price-to-earnings ratio of 21.27, a PEG ratio of 0.44 and a beta of 1.52. The company’s fifty day moving average price is $242.07 and its two-hundred day moving average price is $223.62. The company has a current ratio of 3.18, a quick ratio of 1.45 and a debt-to-equity ratio of 0.45.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings data on Tuesday, July 21st. The basic materials company reported $3.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.63 by $0.06. The firm had revenue of $6.09 billion during the quarter, compared to analysts’ expectations of $5.56 billion. Steel Dynamics had a net margin of 7.83% and a return on equity of 18.12%. The business’s revenue was up 33.4% on a year-over-year basis. During the same period last year, the company earned $2.01 earnings per share. On average, analysts expect that Steel Dynamics, Inc. will post 17.16 EPS 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. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.53 per share. The ex-dividend date is Wednesday, September 30th. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. Steel Dynamics’s payout ratio is 19.22%.

Insider Transactions at Steel Dynamics

In other Steel Dynamics news, SVP James Stanley Anderson sold 10,000 shares of the business’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 transaction of $2,687,000.00. Following the completion of the sale, the senior vice president directly owned 102,837 shares of the company’s stock, valued at approximately $27,632,301.90. The trade was 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.

About Steel Dynamics

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.