Steel Dynamics, Inc. (NASDAQ:STLD) was the recipient of a large decline in short interest during the month of August. As of August 31st, there was short interest totalling 4,531,200 shares, a decline of 13.9% from the July 31st total of 5,264,800 shares. Based on an average daily volume of 2,810,000 shares, the days-to-cover ratio is presently 1.6 days. Currently, 2.2% of the company’s stock are short sold.
In related news, SVP Miguel Alvarez purchased 8,920 shares of the stock in a transaction dated Friday, September 6th. The stock was purchased at an average price of $27.72 per share, with a total value of $247,262.40. Following the transaction, the senior vice president now directly owns 700 shares in the company, valued at $19,404. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 4.90% of the stock is owned by insiders.
A number of large investors have recently modified their holdings of STLD. Candriam Luxembourg S.C.A. grew its stake in shares of Steel Dynamics by 2.5% during the 2nd quarter. Candriam Luxembourg S.C.A. now owns 27,559 shares of the basic materials company’s stock valued at $829,000 after purchasing an additional 674 shares during the period. State of Wisconsin Investment Board grew its stake in shares of Steel Dynamics by 18.7% during the 1st quarter. State of Wisconsin Investment Board now owns 604,609 shares of the basic materials company’s stock valued at $21,325,000 after purchasing an additional 95,353 shares during the period. Cetera Advisor Networks LLC bought a new stake in shares of Steel Dynamics during the 1st quarter valued at about $219,000. Cambridge Investment Research Advisors Inc. grew its stake in shares of Steel Dynamics by 4.5% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 22,804 shares of the basic materials company’s stock valued at $804,000 after purchasing an additional 984 shares during the period. Finally, Marshall Wace LLP grew its stake in shares of Steel Dynamics by 1,482.6% during the 1st quarter. Marshall Wace LLP now owns 593,892 shares of the basic materials company’s stock valued at $20,947,000 after purchasing an additional 556,366 shares during the period. 80.04% of the stock is owned by institutional investors and hedge funds.
Several equities analysts have recently issued reports on the company. Goldman Sachs Group lowered their price target on Steel Dynamics from $44.00 to $36.00 and set a “buy” rating for the company in a research report on Tuesday, June 4th. Bank of America lowered their price target on Steel Dynamics from $34.00 to $30.00 and set a “neutral” rating for the company in a research report on Wednesday, September 4th. ValuEngine raised Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Thursday. BidaskClub raised Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Thursday. Finally, Longbow Research lowered Steel Dynamics from a “buy” rating to a “neutral” rating in a research report on Monday, August 26th. Ten investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $37.27.
NASDAQ:STLD traded up $0.08 during mid-day trading on Friday, reaching $31.99. The company’s stock had a trading volume of 7,376 shares, compared to its average volume of 1,950,800. Steel Dynamics has a 12-month low of $25.02 and a 12-month high of $48.17. The firm’s fifty day moving average price is $28.58 and its two-hundred day moving average price is $31.04. The company has a current ratio of 4.35, a quick ratio of 2.40 and a debt-to-equity ratio of 0.60. The stock has a market cap of $7.01 billion, a P/E ratio of 5.81, a PEG ratio of 0.81 and a beta of 1.64.
Steel Dynamics (NASDAQ:STLD) last issued its earnings results on Monday, July 22nd. The basic materials company reported $0.87 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.89 by ($0.02). Steel Dynamics had a return on equity of 28.50% and a net margin of 9.11%. The business had revenue of $2.77 billion during the quarter, compared to analysts’ expectations of $2.78 billion. During the same period last year, the firm posted $1.53 EPS. Steel Dynamics’s quarterly revenue was down 10.4% compared to the same quarter last year. Analysts predict that Steel Dynamics will post 3.16 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, October 11th. Shareholders of record on Monday, September 30th will be given a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 3.00%. The ex-dividend date is Friday, September 27th. Steel Dynamics’s dividend payout ratio (DPR) is 17.49%.
About Steel Dynamics
Steel Dynamics, Inc, together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. 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; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; and merchant-bar-quality products, including rounds, angles, flats, reinforcing bars, and channels and specialty steel sections.
Further Reading: What does a hold rating mean?
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