Canada Pension Plan Investment Board Cuts Stake in Steel Dynamics, Inc. (STLD)

Canada Pension Plan Investment Board decreased its holdings in Steel Dynamics, Inc. (NASDAQ:STLD) by 15.9% in the third quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 176,061 shares of the basic materials company’s stock after selling 33,300 shares during the period. Canada Pension Plan Investment Board owned approximately 0.07% of Steel Dynamics worth $7,956,000 as of its most recent SEC filing.

Several other institutional investors have also made changes to their positions in STLD. Northern Trust Corp boosted its position in Steel Dynamics by 2.4% during the 2nd quarter. Northern Trust Corp now owns 2,679,485 shares of the basic materials company’s stock valued at $123,123,000 after buying an additional 63,716 shares during the period. PNC Financial Services Group Inc. boosted its position in Steel Dynamics by 2.0% during the 2nd quarter. PNC Financial Services Group Inc. now owns 107,665 shares of the basic materials company’s stock valued at $4,946,000 after buying an additional 2,136 shares during the period. Piedmont Investment Advisors Inc. boosted its position in Steel Dynamics by 66.3% during the 3rd quarter. Piedmont Investment Advisors Inc. now owns 18,544 shares of the basic materials company’s stock valued at $838,000 after buying an additional 7,396 shares during the period. Brookstone Capital Management purchased a new stake in Steel Dynamics during the 3rd quarter valued at $214,000. Finally, IFM Investors Pty Ltd boosted its position in Steel Dynamics by 27.3% during the 3rd quarter. IFM Investors Pty Ltd now owns 12,800 shares of the basic materials company’s stock valued at $578,000 after buying an additional 2,743 shares during the period. 84.01% of the stock is owned by institutional investors.

Shares of NASDAQ STLD opened at $32.31 on Friday. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.94 and a quick ratio of 2.17. Steel Dynamics, Inc. has a 12 month low of $32.25 and a 12 month high of $52.10. The firm has a market capitalization of $7.97 billion, a price-to-earnings ratio of 12.19, a P/E/G ratio of 0.52 and a beta of 1.33.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings data on Wednesday, October 17th. The basic materials company reported $1.69 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.65 by $0.04. Steel Dynamics had a net margin of 11.49% and a return on equity of 31.96%. The business had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.14 billion. During the same period in the prior year, the business earned $0.66 EPS. The company’s revenue for the quarter was up 31.9% on a year-over-year basis. Equities research analysts expect that Steel Dynamics, Inc. will post 5.58 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 11th. Shareholders of record on Monday, December 31st will be issued a $0.1875 dividend. The ex-dividend date of this dividend is Friday, December 28th. This represents a $0.75 annualized dividend and a yield of 2.32%. Steel Dynamics’s dividend payout ratio (DPR) is presently 28.30%.

Steel Dynamics declared that its Board of Directors has approved a stock buyback program on Tuesday, September 4th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the basic materials company to purchase up to 6.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Several equities research analysts have weighed in on STLD shares. Zacks Investment Research cut shares of Steel Dynamics from a “buy” rating to a “hold” rating in a research report on Monday, August 13th. BidaskClub raised shares of Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Tuesday, August 21st. Morgan Stanley raised shares of Steel Dynamics from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $50.00 to $52.00 in a research report on Monday, August 27th. Deutsche Bank cut shares of Steel Dynamics to a “buy” rating in a research report on Tuesday, October 2nd. Finally, Seaport Global Securities started coverage on shares of Steel Dynamics in a research report on Thursday, October 11th. They set a “buy” rating and a $55.00 price target for the company. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and eleven have issued a buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $53.31.

In other Steel Dynamics news, insider Christopher A. Graham sold 10,800 shares of the company’s stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $47.61, for a total value 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard P. Teets, Jr. acquired 20,000 shares of the firm’s stock in a transaction on Wednesday, November 28th. The stock was bought at an average price of $33.85 per share, with a total value of $677,000.00. Following the completion of the acquisition, the director now directly owns 5,022,779 shares in the company, valued at approximately $170,021,069.15. The disclosure for this purchase can be found here. 4.40% of the stock is currently owned by corporate insiders.

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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.

Further Reading: What is a Swap?

Institutional Ownership by Quarter for Steel Dynamics (NASDAQ:STLD)

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