Steel Dynamics (NASDAQ:STLD) Upgraded by BMO Capital Markets to “Outperform” Rating

BMO Capital Markets upgraded shares of Steel Dynamics (NASDAQ:STLD) from a market perform rating to an outperform rating in a research note issued to investors on Monday morning, Marketbeat Ratings reports. They currently have $145.00 target price on the basic materials company’s stock, up from their previous target price of $135.00.

Several other research analysts have also issued reports on STLD. Wolfe Research upgraded shares of Steel Dynamics from an “underperform” rating to a “peer perform” rating in a report on Thursday, February 27th. Citigroup lowered their target price on shares of Steel Dynamics from $160.00 to $145.00 and set a “buy” rating for the company in a research note on Thursday, December 19th. Jefferies Financial Group raised shares of Steel Dynamics from a “hold” rating to a “buy” rating and upped their price target for the company from $125.00 to $145.00 in a research report on Friday, January 24th. UBS Group upgraded Steel Dynamics from a “neutral” rating to a “buy” rating and set a $149.00 price target for the company in a report on Monday, March 24th. Finally, JPMorgan Chase & Co. boosted their price objective on Steel Dynamics from $132.00 to $140.00 and gave the company a “neutral” rating in a research note on Tuesday, March 11th. Four research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $149.67.

Steel Dynamics Stock Performance

Shares of Steel Dynamics stock opened at $127.36 on Monday. The company’s 50 day moving average price is $128.52 and its two-hundred day moving average price is $128.97. The firm has a market capitalization of $19.09 billion, a P/E ratio of 13.00, a P/E/G ratio of 1.05 and a beta of 1.34. Steel Dynamics has a fifty-two week low of $104.60 and a fifty-two week high of $155.56. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.53 and a quick ratio of 1.08.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings data on Wednesday, January 22nd. The basic materials company reported $1.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.69 by ($0.33). Steel Dynamics had a net margin of 8.76% and a return on equity of 17.32%. During the same period last year, the company posted $2.61 earnings per share. On average, equities analysts forecast that Steel Dynamics will post 9.01 earnings per share for the current fiscal year.

Steel Dynamics Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 11th. Stockholders of record on Monday, March 31st will be issued a dividend of $0.50 per share. This is an increase from Steel Dynamics’s previous quarterly dividend of $0.46. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.57%. The ex-dividend date of this dividend is Monday, March 31st. Steel Dynamics’s payout ratio is currently 20.41%.

Steel Dynamics announced that its Board of Directors has initiated a stock buyback program on Monday, February 24th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the basic materials company to reacquire up to 7.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, SVP Glenn Pushis sold 23,649 shares of the business’s stock in a transaction dated Tuesday, February 11th. The stock was sold at an average price of $134.67, for a total value of $3,184,810.83. Following the completion of the sale, the senior vice president now owns 122,140 shares of the company’s stock, valued at approximately $16,448,593.80. The trade was a 16.22 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 6.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Steel Dynamics

Large investors have recently modified their holdings of the business. Wilmington Savings Fund Society FSB purchased a new position in shares of Steel Dynamics during the third quarter valued at approximately $25,000. ORG Wealth Partners LLC purchased a new position in Steel Dynamics during the 4th quarter valued at $28,000. IAG Wealth Partners LLC purchased a new position in Steel Dynamics during the 4th quarter valued at $39,000. Investment Management Corp VA ADV bought a new position in Steel Dynamics in the 4th quarter worth $40,000. Finally, Avalon Trust Co purchased a new stake in shares of Steel Dynamics in the 4th quarter worth about $42,000. 82.41% of the stock is owned by institutional investors.

About Steel Dynamics

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.