Steel Dynamics (NASDAQ:STLD) Stock Rating Lowered by Zacks Investment Research

Steel Dynamics (NASDAQ:STLDGet Rating) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday, Zacks.com reports. They currently have a $82.00 price target on the basic materials company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 5.70% from the company’s current price.

According to Zacks, “Earnings estimates for Steel Dynamics for the second quarter of 2022 have been going up over the past month. The company is expected to gain from acquisitions as well as strong liquidity and efforts to expand capacity. Steel Dynamics will also benefit from its investments to beef up capacity and upgrade facilities. The company is executing a number of projects that should add to capacity and boost profitability. The electric-arc-furnace (EAF) flat roll steel mill will strengthen its steelmaking capacity and value-added product capability. The company also has adequate liquidity to meet its short-term debt obligation. However, the company’s operations face challenges from higher input costs. The chip shortage has also led to a slowdown in steel demand in automotive. The steel industry is also reeling under sustained overcapacity.”

Several other equities analysts have also recently issued reports on the company. BMO Capital Markets lifted their price objective on Steel Dynamics from $95.00 to $104.00 in a report on Friday, April 22nd. The Goldman Sachs Group boosted their price target on Steel Dynamics from $100.00 to $114.00 and gave the stock a “buy” rating in a report on Friday, April 22nd. JPMorgan Chase & Co. boosted their price target on Steel Dynamics from $95.00 to $117.00 and gave the stock an “overweight” rating in a report on Thursday, March 24th. Finally, StockNews.com began coverage on Steel Dynamics in a report on Thursday, March 31st. They issued a “buy” rating for the company. One analyst has rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, Steel Dynamics currently has an average rating of “Buy” and a consensus price target of $89.00.

Shares of Steel Dynamics stock traded down $0.55 during trading on Tuesday, reaching $77.58. The company’s stock had a trading volume of 45,452 shares, compared to its average volume of 2,398,011. The company has a quick ratio of 1.74, a current ratio of 3.42 and a debt-to-equity ratio of 0.45. Steel Dynamics has a 12-month low of $50.54 and a 12-month high of $100.37. The company has a market capitalization of $14.64 billion, a P/E ratio of 4.00 and a beta of 1.29. The business has a 50 day moving average price of $83.68 and a 200-day moving average price of $70.31.

Steel Dynamics (NASDAQ:STLDGet Rating) last posted its quarterly earnings results on Wednesday, April 20th. The basic materials company reported $6.02 earnings per share for the quarter, beating analysts’ consensus estimates of $5.58 by $0.44. The firm had revenue of $5.57 billion for the quarter, compared to the consensus estimate of $5.35 billion. Steel Dynamics had a return on equity of 69.88% and a net margin of 19.02%. The company’s revenue for the quarter was up 57.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.10 earnings per share. Research analysts predict that Steel Dynamics will post 20.69 EPS for the current fiscal year.

Steel Dynamics announced that its board has initiated a share buyback plan on Monday, February 28th that permits the company to buyback $1.25 billion in shares. This buyback authorization permits the basic materials company to reacquire up to 8.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.

In other Steel Dynamics news, SVP Christopher A. Graham sold 4,425 shares of the business’s stock in a transaction dated Thursday, March 3rd. The stock was sold at an average price of $76.51, for a total transaction of $338,556.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 5.40% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently modified their holdings of the company. Riverview Trust Co purchased a new stake in shares of Steel Dynamics in the first quarter worth about $28,000. Rational Advisors LLC purchased a new position in Steel Dynamics in the fourth quarter valued at about $25,000. Citizens National Bank Trust Department purchased a new position in Steel Dynamics in the fourth quarter valued at about $25,000. UMB Bank N A MO purchased a new position in Steel Dynamics in the fourth quarter valued at about $27,000. Finally, Catalyst Capital Advisors LLC purchased a new position in Steel Dynamics in the first quarter valued at about $36,000. 83.19% of the stock is owned by institutional investors.

About Steel Dynamics (Get Rating)

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars.

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