Steel Dynamics, Inc. (NASDAQ:STLD) Short Interest Down 15.9% in February

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) saw a large drop in short interest in February. As of February 28th, there was short interest totalling 3,340,000 shares, a drop of 15.9% from the February 13th total of 3,970,000 shares. Based on an average trading volume of 1,740,000 shares, the days-to-cover ratio is currently 1.9 days. Approximately 2.4% of the company's stock are short sold.

Steel Dynamics Stock Performance

Steel Dynamics stock traded down $3.97 during mid-day trading on Friday, hitting $122.67. 6,338,112 shares of the company's stock traded hands, compared to its average volume of 1,391,918. Steel Dynamics has a fifty-two week low of $104.60 and a fifty-two week 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 stock has a market cap of $18.39 billion, a price-to-earnings ratio of 12.52, a P/E/G ratio of 1.05 and a beta of 1.34. The firm has a 50 day simple moving average of $128.22 and a two-hundred day simple moving average of $128.10.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its earnings results on Wednesday, January 22nd. The basic materials company reported $1.36 earnings per share 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 last year, the company posted $2.61 EPS. On average, research analysts expect that Steel Dynamics will post 9.01 EPS for the current fiscal year.

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Steel Dynamics announced that its board has authorized a share buyback program on Monday, February 24th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the basic materials company to reacquire up to 7.4% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board believes its shares are undervalued.

Steel Dynamics Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, April 11th. Stockholders of record on Monday, March 31st will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Monday, March 31st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.63%. This is an increase from Steel Dynamics's previous quarterly dividend of $0.46. Steel Dynamics's dividend payout ratio (DPR) is currently 20.41%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on STLD. Citigroup decreased their target price on shares of Steel Dynamics from $160.00 to $145.00 and set a "buy" rating for the company in a research note on Thursday, December 19th. StockNews.com raised shares of Steel Dynamics from a "sell" rating to a "hold" rating in a research note on Thursday, March 6th. UBS Group reissued a "neutral" rating and issued a $149.00 target price (up from $145.00) on shares of Steel Dynamics in a research note on Thursday, December 12th. Wolfe Research raised shares of Steel Dynamics from an "underperform" rating to a "peer perform" rating in a research note on Thursday, February 27th. Finally, Morgan Stanley raised Steel Dynamics from an "equal weight" rating to an "overweight" rating and raised their price target for the company from $145.00 to $158.00 in a report on Friday, March 7th. Six equities research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat, Steel Dynamics currently has a consensus rating of "Moderate Buy" and a consensus target price of $148.56.

Insider Transactions at Steel Dynamics

In related news, SVP Glenn Pushis sold 23,649 shares of the firm's stock in a transaction on Tuesday, February 11th. The shares were sold at an average price of $134.67, for a total value of $3,184,810.83. Following the completion of the transaction, the senior vice president now directly owns 122,140 shares of the company's stock, valued at approximately $16,448,593.80. This trade represents a 16.22 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 6.00% of the company's stock.

Institutional Investors Weigh In On Steel Dynamics

A number of hedge funds and other institutional investors have recently modified their holdings of STLD. Wilmington Savings Fund Society FSB bought a new position in shares of Steel Dynamics in the third quarter worth $25,000. ORG Wealth Partners LLC bought a new position in shares of Steel Dynamics in the fourth quarter worth $28,000. Private Trust Co. NA increased its position in shares of Steel Dynamics by 532.6% in the third quarter. Private Trust Co. NA now owns 291 shares of the basic materials company's stock worth $37,000 after purchasing an additional 245 shares during the period. IAG Wealth Partners LLC bought a new position in shares of Steel Dynamics in the fourth quarter worth $39,000. Finally, Investment Management Corp VA ADV bought a new position in shares of Steel Dynamics in the fourth quarter worth $40,000. Institutional investors and hedge funds 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.