Steel Dynamics (NASDAQ:STLD) Shares Down 3.3% - Should You Sell?

Steel Dynamics, Inc. (NASDAQ:STLD - Get Free Report) shares were down 3.3% during trading on Monday . The company traded as low as $123.52 and last traded at $122.96. Approximately 128,836 shares were traded during trading, a decline of 90% from the average daily volume of 1,355,240 shares. The stock had previously closed at $127.14.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on STLD shares. KeyCorp raised Steel Dynamics from a "sector weight" rating to an "overweight" rating and set a $155.00 price target for the company in a research note on Tuesday, February 11th. BNP Paribas upgraded shares of Steel Dynamics from a "neutral" rating to an "outperform" rating in a research report on Friday, January 3rd. UBS Group reiterated a "neutral" rating and issued a $149.00 price target (up from $145.00) on shares of Steel Dynamics in a research report on Thursday, December 12th. Morgan Stanley upgraded Steel Dynamics from an "equal weight" rating to an "overweight" rating and lifted their price objective for the stock from $145.00 to $158.00 in a research report on Friday, March 7th. Finally, Wolfe Research upgraded Steel Dynamics from an "underperform" rating to a "peer perform" rating in a report on Thursday, February 27th. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $148.56.

Steel Dynamics Stock Performance

The company's fifty day moving average price is $128.09 and its two-hundred day moving average price is $127.98. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.08 and a current ratio of 2.53. The firm has a market capitalization of $18.42 billion, a PE ratio of 12.52, a price-to-earnings-growth ratio of 1.05 and a beta of 1.34.

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Steel Dynamics (NASDAQ:STLD - Get Free Report) last announced its quarterly 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 net margin of 8.76% and a return on equity of 17.32%. During the same quarter last year, the business posted $2.61 earnings per share. As a group, equities analysts expect that Steel Dynamics, Inc. will post 9.01 earnings per share for the current year.

Steel Dynamics Increases Dividend

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

Steel Dynamics announced that its Board of Directors has initiated 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 buy up to 7.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Steel Dynamics news, SVP Glenn Pushis sold 23,649 shares of Steel Dynamics stock in a transaction that occurred on Tuesday, February 11th. The shares were 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 directly owns 122,140 shares of the company's stock, valued at $16,448,593.80. The trade was a 16.22 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 6.00% of the company's stock.

Hedge Funds Weigh In On Steel Dynamics

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Wilmington Savings Fund Society FSB purchased a new position in Steel Dynamics in the third quarter valued at about $25,000. ORG Wealth Partners LLC purchased a new stake in shares of Steel Dynamics during the 4th quarter valued at about $28,000. Private Trust Co. NA lifted its position in Steel Dynamics by 532.6% during the 3rd quarter. Private Trust Co. NA now owns 291 shares of the basic materials company's stock worth $37,000 after acquiring an additional 245 shares in the last quarter. IAG Wealth Partners LLC acquired a new position in shares of Steel Dynamics during the fourth quarter worth $39,000. Finally, Investment Management Corp VA ADV purchased a new position in shares of Steel Dynamics in the fourth quarter valued at $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.