Steel Dynamics (NASDAQ:STLD – Get Note) was downgraded by Zacks Investment Research from a “strong buy” rating to a “hold” rating in a research report released Tuesday, Zacks.com reports. They currently have a price target of $82.00 on shares of the basic materials company. Zacks Investment Research’s target price would suggest a potential upside of 5.70% from the company’s current price.
According to Zacks, “Steel Dynamics earnings estimates for the second quarter of 2022 have increased over the past month. The company should benefit from acquisitions as well as strong liquidity and efforts to increase capacity. Steel Dynamics will also benefit from its investments to build capacity and modernize its facilities. The company is carrying out a number of projects which should increase its capacity and increase its profitability. The Electric Arc Furnace (EAF) Flat-Rolled Steel Plant will enhance its steel production capacity and its capacity to produce value-added products. The company also has sufficient cash to meet its short-term debt obligation. However, the company’s operations are facing challenges related to rising input costs. The chip shortage has also led to a slowdown in demand for automotive steel. The steel industry is also reeling from sustained overcapacity.
Several other stock analysts have also recently released reports on the company. BMO Capital Markets raised its price target on Steel Dynamics from $95.00 to $104.00 in a Friday, April 22 report. Goldman Sachs Group raised its price target on Steel Dynamics by $100.00 to $114.00 and gave the stock a “buy” rating in a Friday, April 22 report. JPMorgan Chase & Co. raised its price target on Steel Dynamics from $95.00 to $117.00 and gave the stock an “overweight” rating in a Thursday, March 24 report. Finally, StockNews.com began covering Steel Dynamics in a report on Thursday, March 31. They issued a “buy” rating for the company. One analyst gave the stock a sell rating, three gave the company a hold rating and six gave the company a buy rating. According to data from MarketBeat.com, Steel Dynamics currently has an average rating of “Buy” and a consensus price target of $89.00.
Shares of Steel Dynamics traded down $0.55 during Tuesday’s trading, hitting $77.58. The company’s stock had a trading volume of 45,452 shares, compared to an average trading volume of 2,398,011 shares. The company has a quick ratio of 1.74, a current ratio of 3.42 and a debt ratio of 0.45. Steel Dynamics has a 12 month minimum of $50.54 and a 12 month maximum of $100.37. The company has a market capitalization of $14.64 billion, a P/E ratio of 4.00 and a beta of 1.29. The company has a 50-day moving average price of $83.68 and a 200-day moving average price of $70.31.
Steel Dynamics (NASDAQ:STLD – Get Rating) last released its quarterly results on Wednesday, April 20. The basic materials company reported earnings per share of $6.02 for the quarter, beating consensus analyst estimates of $5.58 by $0.44. The company posted revenue of $5.57 billion for the quarter, versus a consensus estimate of $5.35 billion. Steel Dynamics achieved a return on equity of 69.88% and a net margin of 19.02%. The company’s revenue for the quarter increased 57.1% compared to the same quarter last year. In the same period a year earlier, the company had earned earnings per share of $2.10. Research analysts predict that Steel Dynamics will post EPS of 20.69 for the current fiscal year.
Steel Dynamics announced that its board of directors launched a stock repurchase plan on Monday, Feb. 28 that sees the company repurchase $1.25 billion worth of stock. This repurchase authorization allows the basic materials company to repurchase up to 8.9% of its shares through purchases on the open market. Stock buyback plans are usually an indication that a company’s management believes its stock is undervalued.
In other Steel Dynamics news, SVP Christopher A. Graham sold 4,425 shares of the company in a trade dated Thursday, March 3. The stock was sold at an average price of $76.51, for a total transaction of $338,556.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, accessible via the SEC’s website. 5.40% of the shares are currently held by insiders.
Hedge funds and other institutional investors have recently changed their holdings in the company. Riverview Trust Co purchased a new stake in Steel Dynamics stock in the first quarter worth approximately $28,000. Rational Advisors LLC bought a new position in Steel Dynamics in the fourth quarter worth about $25,000. Citizens National Bank Trust Department bought a new position in Steel Dynamics in the fourth quarter worth around $25,000. UMB Bank NA MO bought a new position in Steel Dynamics in the fourth quarter worth around $27,000. Finally, Catalyst Capital Advisors LLC bought a new position in Steel Dynamics in the first quarter worth approximately $36,000. 83.19% of the shares are held by institutional investors.
About Steel Dynamics (Get a rating)
Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steelmaking Operations, Metal Recycling Operations and Steelmaking Operations. The Steel Operations segment offers hot rolled, cold rolled and coated steel products; parallel leg beams and U-channels, flat irons, large unequal leg angles and rebar, as well as standard quality carbon, intermediate hardness and premium alloy products; and special bar grade machined products, merchant bar grade products and other engineered round steel bars.
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