Steel Dynamics (NASDAQ:STLD) Sets New 52-Week High – Should You Buy?

Steel Dynamics, Inc. (NASDAQ:STLD)’s stock price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $178.36 and last traded at $177.20, with a volume of 941324 shares changing hands. The stock had previously closed at $175.76.

Wall Street Analysts Forecast Growth

STLD has been the subject of several recent research reports. Morgan Stanley increased their price target on Steel Dynamics from $145.00 to $173.00 and gave the company an “overweight” rating in a research report on Friday, October 24th. UBS Group set a $165.00 target price on shares of Steel Dynamics in a research note on Tuesday, November 4th. Wells Fargo & Company upped their price target on shares of Steel Dynamics from $172.00 to $190.00 and gave the stock an “overweight” rating in a research report on Monday, December 15th. JPMorgan Chase & Co. increased their price target on shares of Steel Dynamics from $165.00 to $190.00 and gave the company a “neutral” rating in a research note on Friday, December 5th. Finally, KeyCorp boosted their price objective on shares of Steel Dynamics from $152.00 to $165.00 and gave the stock an “overweight” rating in a research note on Monday, October 27th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $176.89.

Steel Dynamics Trading Down 1.2%

The company has a market cap of $25.57 billion, a price-to-earnings ratio of 23.19, a PEG ratio of 1.19 and a beta of 1.47. The company has a current ratio of 3.11, a quick ratio of 1.47 and a debt-to-equity ratio of 0.43. The business’s 50 day moving average price is $161.71 and its 200-day moving average price is $142.83.

Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Tuesday, October 21st. The basic materials company reported $2.74 EPS for the quarter, beating analysts’ consensus estimates of $2.63 by $0.11. The business had revenue of $4.83 billion for the quarter, compared to analyst estimates of $4.74 billion. Steel Dynamics had a net margin of 6.39% and a return on equity of 12.89%. Steel Dynamics’s quarterly revenue was up 11.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.05 EPS. On average, equities analysts anticipate that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Wednesday, December 31st will be paid a dividend of $0.50 per share. The ex-dividend date is Wednesday, December 31st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.1%. Steel Dynamics’s dividend payout ratio (DPR) is 26.49%.

Insiders Place Their Bets

In related news, SVP Miguel Alvarez sold 8,251 shares of the business’s stock in a transaction on Wednesday, October 29th. The stock was sold at an average price of $162.79, for a total value of $1,343,180.29. Following the completion of the sale, the senior vice president directly owned 117,068 shares in the company, valued at $19,057,499.72. The trade was a 6.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Steel Dynamics

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in shares of Steel Dynamics in the second quarter valued at about $339,769,000. Boston Partners bought a new stake in Steel Dynamics in the 3rd quarter valued at about $101,254,000. Nordea Investment Management AB boosted its holdings in Steel Dynamics by 43.3% in the 2nd quarter. Nordea Investment Management AB now owns 2,088,372 shares of the basic materials company’s stock valued at $271,238,000 after purchasing an additional 630,935 shares during the period. Robeco Institutional Asset Management B.V. grew its position in shares of Steel Dynamics by 40.6% during the 2nd quarter. Robeco Institutional Asset Management B.V. now owns 1,675,973 shares of the basic materials company’s stock worth $214,541,000 after purchasing an additional 484,304 shares in the last quarter. Finally, Qube Research & Technologies Ltd bought a new position in shares of Steel Dynamics during the second quarter worth approximately $48,746,000. Institutional investors and hedge funds own 82.41% 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.