Steel Dynamics (NASDAQ:STLD) Trading Up 7.2% After Strong Earnings

Steel Dynamics, Inc. (NASDAQ:STLDGet Rating)’s share price was up 7.2% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $98.65 and last traded at $98.06. Approximately 17,321 shares traded hands during mid-day trading, a decline of 99% from the average daily volume of 2,371,828 shares. The stock had previously closed at $91.49.

The basic materials company reported $6.02 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $5.59 by $0.43. Steel Dynamics had a return on equity of 63.43% and a net margin of 17.46%. The business had revenue of $5.57 billion during the quarter, compared to analysts’ expectations of $5.35 billion. During the same quarter in the previous year, the business earned $2.10 EPS. The company’s revenue for the quarter was up 57.1% on a year-over-year basis.

The business also recently declared a quarterly dividend, which was paid on Friday, April 15th. Investors of record on Thursday, March 31st were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Wednesday, March 30th. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.26. This represents a $1.36 annualized dividend and a yield of 1.52%. Steel Dynamics’s payout ratio is 8.67%.

Steel Dynamics declared that its board has approved a stock repurchase program on Monday, February 28th that authorizes the company to buyback $1.25 billion in outstanding shares. This buyback authorization authorizes the basic materials company to purchase up to 8.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

Several research firms recently commented on STLD. The Goldman Sachs Group boosted their price target on Steel Dynamics from $100.00 to $114.00 and gave the stock a “buy” rating in a research report on Friday. Wolfe Research lowered Steel Dynamics from a “peer perform” rating to an “underperform” rating and set a $60.00 price target on the stock. in a research report on Tuesday, January 11th. Zacks Investment Research raised Steel Dynamics from a “hold” rating to a “strong-buy” rating and set a $98.00 price target on the stock in a research report on Monday, April 4th. StockNews.com began coverage on Steel Dynamics in a research report on Thursday, March 31st. They set a “buy” rating on the stock. Finally, BMO Capital Markets boosted their price target on Steel Dynamics from $95.00 to $104.00 in a research report on Friday. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $91.00.

In other Steel Dynamics news, SVP Christopher A. Graham sold 4,425 shares of the company’s stock in a transaction that occurred on Thursday, March 3rd. The stock was sold at an average price of $76.51, for a total value of $338,556.75. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 5.40% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Rational Advisors LLC bought a new stake in shares of Steel Dynamics in the 4th quarter valued at approximately $25,000. Citizens National Bank Trust Department acquired a new stake in Steel Dynamics in the fourth quarter worth $25,000. Capital Analysts LLC lifted its stake in Steel Dynamics by 97.3% in the third quarter. Capital Analysts LLC now owns 446 shares of the basic materials company’s stock valued at $26,000 after buying an additional 220 shares during the last quarter. Allegheny Financial Group LTD acquired a new position in shares of Steel Dynamics during the fourth quarter valued at $27,000. Finally, UMB Bank N A MO bought a new position in shares of Steel Dynamics during the fourth quarter worth about $27,000. Institutional investors and hedge funds own 79.32% of the company’s stock.

The company has a current ratio of 3.10, a quick ratio of 1.51 and a debt-to-equity ratio of 0.49. The company’s 50-day moving average is $78.19 and its two-hundred day moving average is $67.41. The stock has a market capitalization of $16.98 billion, a P/E ratio of 5.73 and a beta of 1.40.

About Steel Dynamics (NASDAQ:STLD)

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars.

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