Steel Dynamics (STLD) Downgraded to “Sell” at BidaskClub

BidaskClub cut shares of Steel Dynamics (NASDAQ:STLD) from a hold rating to a sell rating in a research note released on Friday morning.

Several other research analysts also recently weighed in on STLD. Bank of America boosted their price target on Steel Dynamics from $54.00 to $56.00 and gave the company a buy rating in a report on Wednesday, July 25th. Jefferies Financial Group restated a buy rating and issued a $58.00 price target on shares of Steel Dynamics in a research note on Wednesday, July 25th. Zacks Investment Research lowered shares of Steel Dynamics from a buy rating to a hold rating in a research note on Wednesday, July 18th. ValuEngine lowered shares of Steel Dynamics from a buy rating to a hold rating in a research note on Saturday, June 16th. Finally, Deutsche Bank lowered shares of Steel Dynamics to a buy rating in a research note on Tuesday, October 2nd. One research analyst has rated the stock with a sell rating, two have given a hold rating and thirteen have issued a buy rating to the company’s stock. Steel Dynamics currently has a consensus rating of Buy and an average target price of $54.08.

Shares of NASDAQ:STLD traded up $0.06 during trading on Friday, hitting $42.39. 3,135,348 shares of the stock were exchanged, compared to its average volume of 2,273,675. The firm has a market capitalization of $10.61 billion, a price-to-earnings ratio of 16.00, a price-to-earnings-growth ratio of 0.68 and a beta of 1.29. The company has a debt-to-equity ratio of 0.66, a current ratio of 3.61 and a quick ratio of 1.92. Steel Dynamics has a 12-month low of $35.48 and a 12-month high of $52.10.

Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Monday, July 23rd. The basic materials company reported $1.53 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.49 by $0.04. Steel Dynamics had a return on equity of 26.90% and a net margin of 10.01%. The business had revenue of $3.09 billion for the quarter, compared to analyst estimates of $2.91 billion. During the same quarter in the previous year, the company earned $0.63 EPS. The company’s quarterly revenue was up 29.3% on a year-over-year basis. On average, equities analysts anticipate that Steel Dynamics will post 5.55 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 12th. Investors of record on Sunday, September 30th were paid a dividend of $0.1875 per share. The ex-dividend date was Thursday, September 27th. This represents a $0.75 dividend on an annualized basis and a dividend yield of 1.77%. Steel Dynamics’s dividend payout ratio is presently 28.30%.

Steel Dynamics announced that its Board of Directors has authorized a share buyback program on Tuesday, September 4th that allows the company to buyback $750.00 million in shares. This buyback authorization allows the basic materials company to purchase up to 6.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.

In related news, insider Christopher A. Graham sold 10,800 shares of the firm’s stock in a transaction that occurred on Wednesday, September 19th. The shares were sold at an average price of $47.61, for a total transaction of $514,188.00. Following the completion of the sale, the insider now directly owns 26,087 shares in the company, valued at $1,242,002.07. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 4.40% of the company’s stock.

Large investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. boosted its stake in Steel Dynamics by 2.0% in the 2nd quarter. PNC Financial Services Group Inc. now owns 107,665 shares of the basic materials company’s stock worth $4,946,000 after purchasing an additional 2,136 shares during the period. GWM Advisors LLC acquired a new position in Steel Dynamics in the 2nd quarter worth approximately $683,000. Northern Trust Corp boosted its stake in Steel Dynamics by 2.4% in the 2nd quarter. Northern Trust Corp now owns 2,679,485 shares of the basic materials company’s stock worth $123,123,000 after purchasing an additional 63,716 shares during the period. American International Group Inc. boosted its stake in shares of Steel Dynamics by 0.6% during the 2nd quarter. American International Group Inc. now owns 474,862 shares of the basic materials company’s stock valued at $21,820,000 after buying an additional 2,709 shares during the period. Finally, Nomura Asset Management Co. Ltd. boosted its stake in shares of Steel Dynamics by 14.7% during the 2nd quarter. Nomura Asset Management Co. Ltd. now owns 40,678 shares of the basic materials company’s stock valued at $1,869,000 after buying an additional 5,214 shares during the period. Hedge funds and other institutional investors own 83.43% of the company’s stock.

About Steel Dynamics

Steel Dynamics, Inc, together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars.

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Analyst Recommendations for Steel Dynamics (NASDAQ:STLD)

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