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

Steel Dynamics (NASDAQ:STLD) was upgraded by analysts at BMO Capital Markets from a “market perform” rating to an “outperform” rating in a research report issued on Monday, MarketBeat.com reports. The brokerage currently has a $145.00 target price on the basic materials company’s stock, up from their previous target price of $135.00. BMO Capital Markets’ target price would suggest a potential upside of 16.94% from the company’s previous close.

Several other research firms have also weighed in on STLD. Morgan Stanley raised shares of Steel Dynamics from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $145.00 to $158.00 in a report on Friday, March 7th. StockNews.com upgraded shares of Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Thursday, March 6th. KeyCorp upgraded shares of Steel Dynamics from a “sector weight” rating to an “overweight” rating and set a $155.00 price objective for the company in a research report on Tuesday, February 11th. UBS Group upgraded Steel Dynamics from a “neutral” rating to a “buy” rating and set a $149.00 target price on the stock in a research report on Monday, March 24th. Finally, The Goldman Sachs Group assumed coverage on Steel Dynamics in a report on Monday, December 2nd. They issued a “neutral” rating and a $155.00 price target for the company. Four investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $149.67.

Steel Dynamics Trading Down 0.9 %

NASDAQ STLD opened at $124.00 on Monday. Steel Dynamics has a 1 year low of $104.60 and a 1 year 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. The company has a market capitalization of $18.59 billion, a PE ratio of 12.65, a P/E/G ratio of 1.05 and a beta of 1.34. The company has a fifty day moving average of $128.43 and a 200 day moving average of $128.98.

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

Steel Dynamics declared that its Board of Directors has authorized a stock buyback program on Monday, February 24th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the basic materials company to purchase up to 7.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Steel Dynamics news, SVP Glenn Pushis sold 23,649 shares of the business’s stock in a transaction on 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC increased its position in Steel Dynamics by 105.2% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 20,907 shares of the basic materials company’s stock worth $2,385,000 after purchasing an additional 10,716 shares during the last quarter. PKO Investment Management Joint Stock Co purchased a new stake in shares of Steel Dynamics in the 4th quarter valued at approximately $570,000. Park Square Financial Group LLC purchased a new stake in shares of Steel Dynamics during the 4th quarter valued at approximately $45,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Steel Dynamics in the fourth quarter valued at approximately $10,786,000. Finally, Polar Asset Management Partners Inc. purchased a new position in Steel Dynamics in the fourth quarter worth approximately $2,703,000. Hedge funds and other institutional investors 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.