Traders Purchase Large Volume of Steel Dynamics Call Options (NASDAQ:STLD)

Steel Dynamics, Inc. (NASDAQ:STLD) saw some unusual options trading on Monday. Traders bought 2,995 call options on the company. This represents an increase of approximately 1,191% compared to the average volume of 232 call options.

In related news, SVP Miguel Alvarez acquired 8,920 shares of Steel Dynamics stock in a transaction that occurred on Friday, September 6th. The shares were purchased at an average cost of $27.72 per share, for a total transaction of $247,262.40. Following the acquisition, the senior vice president now owns 700 shares in the company, valued at $19,404. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 4.90% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of the business. Candriam Luxembourg S.C.A. raised its holdings in shares of Steel Dynamics by 2.5% in the 2nd quarter. Candriam Luxembourg S.C.A. now owns 27,559 shares of the basic materials company’s stock valued at $829,000 after purchasing an additional 674 shares in the last quarter. Neo Ivy Capital Management purchased a new position in shares of Steel Dynamics in the 3rd quarter valued at about $795,000. Nuveen Asset Management LLC increased its holdings in shares of Steel Dynamics by 120.9% in the 2nd quarter. Nuveen Asset Management LLC now owns 1,889,404 shares of the basic materials company’s stock valued at $57,060,000 after acquiring an additional 1,034,176 shares during the last quarter. Zacks Investment Management acquired a new stake in shares of Steel Dynamics during the 2nd quarter worth about $20,062,000. Finally, Teacher Retirement System of Texas raised its position in shares of Steel Dynamics by 10.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 1,176,648 shares of the basic materials company’s stock worth $35,535,000 after acquiring an additional 111,765 shares in the last quarter. 79.60% of the stock is owned by institutional investors.

STLD has been the subject of a number of recent analyst reports. ValuEngine upgraded shares of Steel Dynamics from a “hold” rating to a “buy” rating in a research report on Friday, November 1st. Zacks Investment Research upgraded shares of Steel Dynamics from a “strong sell” rating to a “hold” rating and set a $25.00 price objective on the stock in a report on Wednesday, October 23rd. Longbow Research lowered shares of Steel Dynamics from a “buy” rating to a “neutral” rating in a report on Monday, August 26th. Bank of America lowered their price objective on shares of Steel Dynamics from $34.00 to $30.00 and set a “neutral” rating for the company in a research report on Wednesday, September 4th. Finally, BNP Paribas assumed coverage on shares of Steel Dynamics in a report on Thursday, November 14th. They issued an “outperform” rating and a $40.00 target price for the company. Eight investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $33.17.

Shares of NASDAQ:STLD opened at $34.15 on Tuesday. The firm has a market capitalization of $7.27 billion, a PE ratio of 6.22, a price-to-earnings-growth ratio of 0.92 and a beta of 1.70. Steel Dynamics has a 1 year low of $25.02 and a 1 year high of $39.35. The company has a debt-to-equity ratio of 0.60, a current ratio of 4.00 and a quick ratio of 2.24. The firm’s 50-day moving average is $31.36 and its two-hundred day moving average is $29.52.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings data on Wednesday, October 16th. The basic materials company reported $0.69 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.70 by ($0.01). Steel Dynamics had a net margin of 7.44% and a return on equity of 22.08%. The business had revenue of $2.53 billion during the quarter, compared to analysts’ expectations of $2.62 billion. During the same period in the previous year, the business posted $1.69 EPS. Analysts expect that Steel Dynamics will post 3.04 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 10th. Shareholders of record on Tuesday, December 31st will be issued a dividend of $0.24 per share. The ex-dividend date is Monday, December 30th. This represents a $0.96 dividend on an annualized basis and a yield of 2.81%. Steel Dynamics’s dividend payout ratio (DPR) is presently 17.49%.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; and merchant-bar-quality products, including rounds, angles, flats, reinforcing bars, and channels and specialty steel sections.

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