Steel Dynamics (NASDAQ:STLD) Reaches New 12-Month High After Better-Than-Expected Earnings

Steel Dynamics, Inc. (NASDAQ:STLD) shares hit a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $185.56 and last traded at $173.32, with a volume of 2190687 shares. The stock had previously closed at $181.32.

The basic materials company reported $1.82 EPS for the quarter, beating analysts’ consensus estimates of $1.72 by $0.10. Steel Dynamics had a return on equity of 13.56% and a net margin of 6.52%.The business had revenue of $4.41 billion during the quarter, compared to analysts’ expectations of $4.62 billion. During the same period in the previous year, the business earned $1.36 earnings per share. The business’s revenue was up 14.0% compared to the same quarter last year.

Steel Dynamics Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Wednesday, December 31st were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Wednesday, December 31st. Steel Dynamics’s dividend payout ratio (DPR) is presently 26.49%.

Analysts Set New Price Targets

Several research firms recently weighed in on STLD. Weiss Ratings restated a “hold (c+)” rating on shares of Steel Dynamics in a research report on Monday, December 29th. JPMorgan Chase & Co. boosted their price objective on Steel Dynamics from $165.00 to $190.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Morgan Stanley restated an “equal weight” rating and issued a $194.00 target price (up previously from $173.00) on shares of Steel Dynamics in a research report on Friday, January 9th. UBS Group set a $165.00 price target on Steel Dynamics in a research note on Tuesday, November 4th. Finally, Citigroup increased their price objective on Steel Dynamics from $150.00 to $180.00 and gave the company a “buy” rating in a research note on Wednesday, October 29th. Five research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $182.00.

Hedge Funds Weigh In On Steel Dynamics

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AGP Franklin LLC acquired a new stake in shares of Steel Dynamics in the 4th quarter worth $1,025,000. Diversified Enterprises LLC purchased a new stake in shares of Steel Dynamics in the fourth quarter valued at about $237,000. Peregrine Capital Management LLC grew its holdings in shares of Steel Dynamics by 10.7% in the fourth quarter. Peregrine Capital Management LLC now owns 78,836 shares of the basic materials company’s stock valued at $13,359,000 after purchasing an additional 7,608 shares during the period. Nvest Wealth Strategies Inc. acquired a new stake in Steel Dynamics during the fourth quarter worth about $42,000. Finally, B. Metzler seel. Sohn & Co. AG boosted its holdings in Steel Dynamics by 4.9% in the 4th quarter. B. Metzler seel. Sohn & Co. AG now owns 5,584 shares of the basic materials company’s stock valued at $946,000 after purchasing an additional 261 shares during the last quarter. Institutional investors and hedge funds own 82.41% of the company’s stock.

Steel Dynamics Stock Performance

The firm’s 50 day moving average price is $170.88 and its two-hundred day moving average price is $149.84. The firm has a market cap of $25.47 billion, a PE ratio of 21.77, a PEG ratio of 0.74 and a beta of 1.48. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.47 and a current ratio of 3.06.

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.