Steel Dynamics (NASDAQ:STLD) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Steel Dynamics (NASDAQ:STLD) from a buy rating to a hold rating in a report issued on Saturday morning.

Several other research analysts also recently weighed in on STLD. KeyCorp assumed coverage on shares of Steel Dynamics in a research note on Wednesday, March 25th. They issued an “overweight” rating and a $190.00 target price for the company. Jefferies Financial Group reissued a “buy” rating on shares of Steel Dynamics in a research note on Tuesday, March 17th. Morgan Stanley reissued an “underperform” rating and issued a $190.00 target price on shares of Steel Dynamics in a research note on Tuesday, March 17th. Weiss Ratings reissued a “hold (c+)” rating on shares of Steel Dynamics in a research note on Monday, December 29th. Finally, Wells Fargo & Company cut their target price on shares of Steel Dynamics from $210.00 to $196.00 and set an “overweight” rating for the company in a research note on Wednesday, March 18th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $182.44.

Steel Dynamics Trading Down 2.0%

NASDAQ:STLD opened at $176.53 on Friday. The company has a market capitalization of $25.55 billion, a PE ratio of 22.04, a price-to-earnings-growth ratio of 0.49 and a beta of 1.39. The company has a quick ratio of 1.29, a current ratio of 3.06 and a debt-to-equity ratio of 0.48. Steel Dynamics has a 52-week low of $103.17 and a 52-week high of $208.47. The stock has a fifty day simple moving average of $184.87 and a 200-day simple moving average of $168.81.

Steel Dynamics (NASDAQ:STLD) last announced its earnings results on Tuesday, January 27th. The basic materials company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.72 by $0.10. Steel Dynamics had a net margin of 6.52% and a return on equity of 13.56%. The firm had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.62 billion. During the same quarter in the previous year, the company posted $1.36 EPS. The firm’s revenue for the quarter was up 14.0% on a year-over-year basis. On average, equities research analysts expect that Steel Dynamics will post 9.01 earnings per share for the current fiscal year.

Steel Dynamics Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Tuesday, March 31st will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from Steel Dynamics’s previous quarterly dividend of $0.50. Steel Dynamics’s dividend payout ratio is currently 26.47%.

Institutional Trading of Steel Dynamics

A number of institutional investors have recently modified their holdings of the company. Jacobi Capital Management LLC grew its holdings in shares of Steel Dynamics by 1.6% during the 4th quarter. Jacobi Capital Management LLC now owns 3,533 shares of the basic materials company’s stock worth $599,000 after purchasing an additional 55 shares during the period. Optas LLC grew its holdings in shares of Steel Dynamics by 3.0% during the 4th quarter. Optas LLC now owns 1,979 shares of the basic materials company’s stock worth $335,000 after purchasing an additional 58 shares during the period. Hohimer Wealth Management LLC grew its holdings in shares of Steel Dynamics by 1.1% during the 4th quarter. Hohimer Wealth Management LLC now owns 5,708 shares of the basic materials company’s stock worth $967,000 after purchasing an additional 61 shares during the period. Versant Capital Management Inc grew its holdings in shares of Steel Dynamics by 13.2% during the 3rd quarter. Versant Capital Management Inc now owns 548 shares of the basic materials company’s stock worth $76,000 after purchasing an additional 64 shares during the period. Finally, Wright Investors Service Inc. grew its holdings in shares of Steel Dynamics by 1.2% during the 4th quarter. Wright Investors Service Inc. now owns 5,555 shares of the basic materials company’s stock worth $941,000 after purchasing an additional 64 shares during the period. Hedge funds and other institutional investors own 82.41% of the company’s stock.

Steel Dynamics Company Profile

Steel Dynamics, Inc is a U.S.-based, diversified steel producer and metals recycler that operates an integrated network of mini-mills, finishing lines and fabrication facilities. Founded in 1993 and headquartered in Fort Wayne, Indiana, the company manufactures a broad range of steel products and provides downstream processing, coating and fabrication services to industrial customers. Its operations combine steelmaking using electric-arc furnaces with extensive metals recycling capabilities, allowing Steel Dynamics to convert scrap ferrous and nonferrous materials into finished steel products.

The company’s product portfolio includes flat-rolled steel (coiled and sheet products), structural steel and fabricated components, along with coated and painted steel used in consumer, industrial and construction applications.