JPMorgan Chase & Co. Issues Pessimistic Forecast for Steel Dynamics (NASDAQ:STLD) Stock Price

Steel Dynamics (NASDAQ:STLD) had its target price dropped by equities researchers at JPMorgan Chase & Co. from $262.00 to $256.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the basic materials company’s stock. JPMorgan Chase & Co.‘s target price indicates a potential upside of 8.95% from the stock’s previous close.

Several other research analysts have also commented on STLD. BMO Capital Markets raised their price objective on shares of Steel Dynamics from $195.00 to $240.00 and gave the company an “outperform” rating in a research note on Wednesday, April 22nd. Wall Street Zen raised shares of Steel Dynamics from a “hold” rating to a “buy” rating in a research note on Saturday, April 18th. KeyCorp increased their target price on shares of Steel Dynamics from $241.00 to $262.00 and gave the stock an “overweight” rating in a report on Wednesday, June 24th. Citigroup raised their price target on shares of Steel Dynamics from $180.00 to $255.00 and gave the company a “buy” rating in a research report on Wednesday, April 22nd. Finally, Morgan Stanley raised their price target on shares of Steel Dynamics from $227.00 to $270.00 and gave the company an “equal weight” rating in a research report on Monday, June 22nd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $239.18.

Steel Dynamics Stock Performance

NASDAQ STLD opened at $234.98 on Wednesday. Steel Dynamics has a fifty-two week low of $119.89 and a fifty-two week high of $288.74. The firm has a market capitalization of $34.01 billion, a P/E ratio of 25.13, a price-to-earnings-growth ratio of 0.44 and a beta of 1.53. The stock’s fifty day moving average is $245.94 and its two-hundred day moving average is $208.61. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.33 and a current ratio of 3.13.

Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Tuesday, April 21st. The basic materials company reported $2.78 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.01). Steel Dynamics had a return on equity of 15.54% and a net margin of 7.22%.The firm had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same quarter in the prior year, the business earned $1.44 EPS. The firm’s quarterly revenue was up 19.1% on a year-over-year basis. On average, research analysts anticipate that Steel Dynamics will post 17.27 earnings per share for the current year.

Insider Activity

In related news, SVP Miguel Alvarez sold 4,825 shares of the firm’s stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $225.58, for a total value of $1,088,423.50. Following the completion of the sale, the senior vice president owned 122,257 shares in the company, valued at $27,578,734.06. This trade represents a 3.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP James Stanley Anderson sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $268.70, for a total value 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 $27,632,301.90. This represents a 8.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 22,125 shares of company stock worth $5,438,226 over the last quarter. Insiders own 6.60% of the company’s stock.

Institutional Trading of Steel Dynamics

Several large investors have recently modified their holdings of the business. Prosperity Bancshares Inc purchased a new position in Steel Dynamics in the 4th quarter valued at about $25,000. MV Capital Management Inc. purchased a new position in shares of Steel Dynamics during the fourth quarter valued at approximately $27,000. Sound Income Strategies LLC boosted its position in Steel Dynamics by 1,500.0% during the fourth quarter. Sound Income Strategies LLC now owns 160 shares of the basic materials company’s stock worth $28,000 after acquiring an additional 150 shares during the last quarter. Cedar Mountain Advisors LLC purchased a new stake in Steel Dynamics in the 1st quarter worth approximately $31,000. Finally, DV Equities LLC acquired a new position in Steel Dynamics in the 4th quarter valued at $33,000. 82.41% of the stock is currently owned by institutional investors and hedge funds.

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.