Steel Dynamics (NASDAQ:STLD) Raised to Buy at UBS Group

UBS Group upgraded shares of Steel Dynamics (NASDAQ:STLD - Free Report) from a neutral rating to a buy rating in a report published on Monday, MarketBeat Ratings reports. They currently have $149.00 target price on the basic materials company's stock.

A number of other research firms also recently weighed in on STLD. 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. Citigroup cut their price objective on shares of Steel Dynamics from $160.00 to $145.00 and set a "buy" rating on the stock in a research report on Thursday, December 19th. JPMorgan Chase & Co. lifted their target price on shares of Steel Dynamics from $132.00 to $140.00 and gave the company a "neutral" rating in a research note on Tuesday, March 11th. StockNews.com upgraded shares of Steel Dynamics from a "sell" rating to a "hold" rating in a research note on Thursday, March 6th. Finally, Wolfe Research raised shares of Steel Dynamics from an "underperform" rating to a "peer perform" rating in a research note on Thursday, February 27th. Five investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $148.56.

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Steel Dynamics Stock Down 3.1 %

Shares of STLD traded down $4.02 during trading hours on Monday, reaching $123.97. The company's stock had a trading volume of 2,337,322 shares, compared to its average volume of 1,453,366. The company has a 50 day moving average of $128.46 and a two-hundred day moving average of $128.52. The company has a quick ratio of 1.08, a current ratio of 2.53 and a debt-to-equity ratio of 0.32. The firm has a market cap of $18.58 billion, a price-to-earnings ratio of 12.65, a P/E/G ratio of 1.05 and a beta of 1.34. Steel Dynamics has a 1-year low of $104.60 and a 1-year high of $155.56.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings results on Wednesday, January 22nd. The basic materials company reported $1.36 EPS for the quarter, missing the consensus estimate 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 in the previous year, the firm earned $2.61 EPS. As a group, research analysts predict that Steel Dynamics will post 9.01 EPS for the current fiscal year.

Steel Dynamics announced that its board has authorized a share buyback plan on Monday, February 24th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the basic materials company to buy up to 7.4% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Steel Dynamics Increases Dividend

The firm also recently disclosed 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. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.61%. This is an increase from Steel Dynamics's previous quarterly dividend of $0.46. The ex-dividend date is Monday, March 31st. Steel Dynamics's dividend payout ratio (DPR) is presently 20.41%.

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 stock was sold at an average price of $134.67, for a total transaction of $3,184,810.83. Following the sale, the senior vice president now directly owns 122,140 shares of the company's stock, valued at approximately $16,448,593.80. The trade was a 16.22 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 6.30% of the company's stock.

Hedge Funds Weigh In On Steel Dynamics

Several hedge funds and other institutional investors have recently modified their holdings of STLD. Wilmington Savings Fund Society FSB acquired a new position in Steel Dynamics during the third quarter worth $25,000. ORG Wealth Partners LLC bought a new stake in shares of Steel Dynamics in the 4th quarter worth about $28,000. Private Trust Co. NA increased its position in shares of 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 purchasing an additional 245 shares in the last quarter. IAG Wealth Partners LLC acquired a new stake in shares of Steel Dynamics during the 4th quarter worth about $39,000. Finally, Investment Management Corp VA ADV bought a new position in Steel Dynamics during the 4th quarter valued at about $40,000. Institutional investors own 82.41% of the company's stock.

About Steel Dynamics

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.