Steel Dynamics (NASDAQ:STLD) Trading Down 3.3% – Should You Sell?

Steel Dynamics, Inc. (NASDAQ:STLD)’s stock price was down 3.3% during trading on Monday . The stock traded as low as $123.52 and last traded at $122.96. Approximately 128,836 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 1,355,240 shares. The stock had previously closed at $127.14.

Wall Street Analyst Weigh In

Several equities research analysts have commented on STLD shares. KeyCorp upgraded shares of Steel Dynamics from a “sector weight” rating to an “overweight” rating and set a $155.00 price target on the stock in a research note on Tuesday, February 11th. UBS Group restated a “neutral” rating and issued a $149.00 price target (up previously from $145.00) on shares of Steel Dynamics in a research note on Thursday, December 12th. Citigroup dropped their price target on shares of Steel Dynamics from $160.00 to $145.00 and set a “buy” rating on the stock in a research note on Thursday, December 19th. Jefferies Financial Group upgraded shares of Steel Dynamics from a “hold” rating to a “buy” rating and raised their price target for the company from $125.00 to $145.00 in a research note on Friday, January 24th. Finally, Morgan Stanley upgraded shares of Steel Dynamics from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $145.00 to $158.00 in a research note on Friday, March 7th. Six analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $148.56.

Steel Dynamics Stock Performance

The company has a quick ratio of 1.08, a current ratio of 2.53 and a debt-to-equity ratio of 0.32. The stock has a market cap of $19.08 billion, a price-to-earnings ratio of 12.97, a price-to-earnings-growth ratio of 1.05 and a beta of 1.34. The company’s 50-day simple moving average is $127.65 and its 200-day simple moving average is $127.98.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings results 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 return on equity of 17.32% and a net margin of 8.76%. During the same quarter last year, the business posted $2.61 earnings per share. Analysts predict that Steel Dynamics, Inc. will post 9.01 EPS for the current fiscal year.

Steel Dynamics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 11th. Investors of record on Monday, March 31st will be paid a $0.50 dividend. This is a positive change from Steel Dynamics’s previous quarterly dividend of $0.46. The ex-dividend date is Monday, March 31st. This represents a $2.00 dividend on an annualized basis and a yield of 1.57%. Steel Dynamics’s dividend payout ratio (DPR) is currently 20.41%.

Steel Dynamics declared that its board has approved a share repurchase program on Monday, February 24th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the basic materials company to reacquire up to 7.4% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In related news, SVP Glenn Pushis sold 23,649 shares of the firm’s stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $134.67, for a total value of $3,184,810.83. Following the completion of the transaction, the senior vice president now owns 122,140 shares of the company’s stock, valued at approximately $16,448,593.80. This trade represents a 16.22 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 6.00% of the company’s stock.

Institutional Investors Weigh In On Steel Dynamics

Institutional investors have recently modified their holdings of the stock. Wilmington Savings Fund Society FSB acquired a new stake in shares of Steel Dynamics during the 3rd quarter valued at $25,000. ORG Wealth Partners LLC bought a new position in Steel Dynamics in the 4th quarter worth $28,000. Private Trust Co. NA raised its holdings in Steel Dynamics by 532.6% in the 3rd quarter. Private Trust Co. NA now owns 291 shares of the basic materials company’s stock worth $37,000 after acquiring an additional 245 shares during the period. IAG Wealth Partners LLC bought a new position in shares of Steel Dynamics during the 4th quarter worth about $39,000. Finally, Investment Management Corp VA ADV bought a new position in shares of Steel Dynamics during the 4th quarter worth about $40,000. Institutional investors and hedge funds own 82.41% of the company’s stock.

Steel Dynamics Company Profile

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.