Wall Street brokerages expect Steel Dynamics, Inc. (NASDAQ:STLD) to post $2.96 billion in sales for the current fiscal quarter, according to Zacks. Five analysts have provided estimates for Steel Dynamics’ earnings. The highest sales estimate is $3.02 billion and the lowest is $2.84 billion. Steel Dynamics posted sales of $2.34 billion during the same quarter last year, which would indicate a positive year-over-year growth rate of 26.5%. The firm is expected to report its next earnings results on Monday, January 28th.
On average, analysts expect that Steel Dynamics will report full year sales of $11.90 billion for the current financial year, with estimates ranging from $11.76 billion to $11.97 billion. For the next financial year, analysts anticipate that the business will post sales of $11.95 billion, with estimates ranging from $11.15 billion to $12.92 billion. Zacks Investment Research’s sales averages are an average based on a survey of research analysts that that provide coverage for Steel Dynamics.
Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Wednesday, October 17th. The basic materials company reported $1.69 EPS for the quarter, beating the Zacks’ consensus estimate of $1.65 by $0.04. The company had revenue of $3.22 billion for the quarter, compared to analysts’ expectations of $3.14 billion. Steel Dynamics had a net margin of 11.49% and a return on equity of 31.96%. Steel Dynamics’s revenue was up 31.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.66 EPS.
A number of analysts recently weighed in on STLD shares. Deutsche Bank lowered shares of Steel Dynamics to a “buy” rating in a report on Tuesday, October 2nd. BMO Capital Markets decreased their target price on shares of Steel Dynamics from $60.00 to $53.00 and set a “buy” rating on the stock in a report on Friday, October 19th. Zacks Investment Research lowered shares of Steel Dynamics from a “buy” rating to a “hold” rating in a report on Thursday, October 4th. ValuEngine lowered shares of Steel Dynamics from a “hold” rating to a “sell” rating in a report on Wednesday, October 17th. Finally, BidaskClub lowered shares of Steel Dynamics from a “hold” rating to a “sell” rating in a report on Friday, October 12th. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and eleven have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus target price of $53.31.
In related news, Director Richard P. Teets, Jr. purchased 20,000 shares of the firm’s stock in a transaction dated Wednesday, November 28th. The shares were purchased at an average price of $33.85 per share, with a total value of $677,000.00. Following the acquisition, the director now directly owns 5,022,779 shares of the company’s stock, valued at $170,021,069.15. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Christopher A. Graham sold 10,800 shares of the stock in a transaction on Wednesday, September 19th. The stock was sold at an average price of $47.61, for a total transaction of $514,188.00. Following the completion of the transaction, the insider now directly owns 26,087 shares in the company, valued at approximately $1,242,002.07. The disclosure for this sale can be found here. Corporate insiders own 4.40% of the company’s stock.
Several large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in shares of Steel Dynamics by 4.3% in the 3rd quarter. Vanguard Group Inc. now owns 21,357,596 shares of the basic materials company’s stock worth $965,150,000 after buying an additional 882,061 shares during the last quarter. Morgan Stanley increased its holdings in shares of Steel Dynamics by 17.5% in the 3rd quarter. Morgan Stanley now owns 1,765,502 shares of the basic materials company’s stock worth $79,783,000 after buying an additional 262,712 shares during the last quarter. Legal & General Group Plc increased its holdings in shares of Steel Dynamics by 121.7% in the 3rd quarter. Legal & General Group Plc now owns 1,134,289 shares of the basic materials company’s stock worth $51,258,000 after buying an additional 622,666 shares during the last quarter. Kepos Capital LP bought a new position in shares of Steel Dynamics in the 3rd quarter worth $6,386,000. Finally, Nordea Investment Management AB boosted its stake in shares of Steel Dynamics by 13.3% in the 3rd quarter. Nordea Investment Management AB now owns 167,298 shares of the basic materials company’s stock valued at $7,559,000 after purchasing an additional 19,580 shares in the last quarter. 85.62% of the stock is currently owned by hedge funds and other institutional investors.
Shares of STLD stock opened at $34.98 on Friday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.17 and a current ratio of 3.94. The company has a market cap of $7.73 billion, a P/E ratio of 13.20, a price-to-earnings-growth ratio of 0.50 and a beta of 1.35. Steel Dynamics has a 12 month low of $33.38 and a 12 month high of $52.10.
The company also recently announced a quarterly dividend, which will be paid on Friday, January 11th. Investors of record on Monday, December 31st will be issued a dividend of $0.1875 per share. This represents a $0.75 dividend on an annualized basis and a yield of 2.14%. The ex-dividend date is Friday, December 28th. Steel Dynamics’s dividend payout ratio (DPR) is presently 28.30%.
Steel Dynamics announced that its board has authorized a share buyback program on Tuesday, September 4th that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the basic materials company to reacquire up to 6.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.
About Steel Dynamics
Steel Dynamics, Inc, together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars.
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