Steel Dynamics (NASDAQ:STLD) Rating Increased to Outperform at BMO Capital Markets

Steel Dynamics (NASDAQ:STLD) was upgraded by BMO Capital Markets from a “market perform” rating to an “outperform” rating in a research note issued to investors on Monday,Finviz reports. The brokerage presently has a $145.00 price objective on the basic materials company’s stock, up from their previous price objective of $135.00. BMO Capital Markets’ target price suggests a potential upside of 16.96% from the company’s previous close.

Other analysts have also issued research reports about the company. Citigroup decreased their price target on Steel Dynamics from $160.00 to $145.00 and set a “buy” rating on the stock in a report on Thursday, December 19th. UBS Group upgraded shares of Steel Dynamics from a “neutral” rating to a “buy” rating and set a $149.00 target price for the company in a report on Monday, March 24th. The Goldman Sachs Group began coverage on Steel Dynamics in a research report on Monday, December 2nd. They set a “neutral” rating and a $155.00 target price for the company. Jefferies Financial Group raised Steel Dynamics from a “hold” rating to a “buy” rating and upped their price objective for the company from $125.00 to $145.00 in a research report on Friday, January 24th. Finally, JPMorgan Chase & Co. lifted their target price on Steel Dynamics from $132.00 to $140.00 and gave the stock a “neutral” rating in a research report on Tuesday, March 11th. Four equities 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 currently has an average rating of “Moderate Buy” and a consensus price target of $149.67.

Steel Dynamics Stock Performance

Shares of NASDAQ STLD opened at $123.97 on Monday. The firm’s fifty day moving average is $128.46 and its two-hundred day moving average is $128.80. Steel Dynamics has a 52-week low of $104.60 and a 52-week high of $155.56. The company has a market cap of $18.58 billion, a P/E ratio of 12.65, a P/E/G ratio of 1.05 and a beta of 1.34. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.08 and a current ratio of 2.53.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings results on Wednesday, January 22nd. The basic materials company reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 quarter in the previous year, the company posted $2.61 EPS. As a group, analysts anticipate that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Steel Dynamics declared that its Board of Directors has initiated a share buyback plan on Monday, February 24th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the basic materials company to repurchase up to 7.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Transactions at Steel Dynamics

In related news, SVP Glenn Pushis sold 23,649 shares of the company’s stock in a transaction dated Tuesday, February 11th. The stock was sold at an average price of $134.67, for a total transaction of $3,184,810.83. Following the transaction, the senior vice president now directly owns 122,140 shares of the company’s stock, valued at $16,448,593.80. This represents a 16.22 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Steel Dynamics

A number of large investors have recently modified their holdings of the business. Forum Financial Management LP boosted its stake in Steel Dynamics by 2.5% in the 4th quarter. Forum Financial Management LP now owns 3,113 shares of the basic materials company’s stock worth $355,000 after purchasing an additional 75 shares in the last quarter. M&T Bank Corp lifted its stake in shares of Steel Dynamics by 0.9% during the third quarter. M&T Bank Corp now owns 10,055 shares of the basic materials company’s stock worth $1,267,000 after buying an additional 88 shares during the period. Atomi Financial Group Inc. grew its holdings in shares of Steel Dynamics by 5.0% during the fourth quarter. Atomi Financial Group Inc. now owns 1,929 shares of the basic materials company’s stock valued at $220,000 after buying an additional 91 shares during the last quarter. Resonant Capital Advisors LLC increased its position in shares of Steel Dynamics by 3.3% in the 4th quarter. Resonant Capital Advisors LLC now owns 3,200 shares of the basic materials company’s stock valued at $366,000 after acquiring an additional 101 shares during the period. Finally, OneAscent Financial Services LLC increased its position in shares of Steel Dynamics by 2.2% in the 4th quarter. OneAscent Financial Services LLC now owns 4,605 shares of the basic materials company’s stock valued at $527,000 after acquiring an additional 101 shares during the period. Hedge funds and other institutional investors own 82.41% of the company’s stock.

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.