Zacks Investment Research Lowers Steel Dynamics (STLD) to Hold

Steel Dynamics (NASDAQ:STLD) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday, March 14th.

According to Zacks, “Steel Dynamics, Inc. is unique among American steel companies. It is one of the youngest of America’s major steel companies. It quickly grew to become one of the premier carbon steel producers in the United States. Steel Dynamics’ historic growth is a combination of organic capacity greenfield additions and strategic acquisitions. By adding upstream assets that provide raw materials needed to produce high quality steel at each of its mills, and bridging downstream assets that fabricate a variety of high quality steel products, Steel Dynamics has both broadened its product portfolio and expanded its market diversity. As the company’s steelmaking capacity grew and it introduced new products to the market, the company began delivering strong earnings. “

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Other equities analysts have also issued research reports about the company. ValuEngine lowered Steel Dynamics from a “buy” rating to a “hold” rating in a research report on Wednesday, November 29th. Credit Suisse Group raised their price target on Steel Dynamics from $43.00 to $53.00 and gave the company an “outperform” rating in a report on Wednesday, January 24th. Cowen set a $60.00 price objective on Steel Dynamics and gave the stock a “buy” rating in a report on Monday, February 5th. BidaskClub upgraded Steel Dynamics from a “hold” rating to a “buy” rating in a report on Tuesday, December 12th. Finally, Jefferies Group reiterated a “buy” rating and issued a $53.00 price objective on shares of Steel Dynamics in a report on Thursday, January 11th. Four analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the stock. Steel Dynamics has a consensus rating of “Buy” and an average target price of $48.29.

Shares of Steel Dynamics stock traded down $2.06 on Wednesday, hitting $43.48. The stock had a trading volume of 2,517,326 shares, compared to its average volume of 2,368,442. Steel Dynamics has a one year low of $32.15 and a one year high of $50.70. The stock has a market capitalization of $10,269.06, a price-to-earnings ratio of 16.41, a P/E/G ratio of 0.87 and a beta of 1.29. The company has a debt-to-equity ratio of 0.74, a quick ratio of 2.29 and a current ratio of 4.04.

Steel Dynamics (NASDAQ:STLD) last announced its quarterly earnings results on Monday, January 22nd. The basic materials company reported $0.54 EPS for the quarter, topping analysts’ consensus estimates of $0.49 by $0.05. The company had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.17 billion. Steel Dynamics had a return on equity of 21.48% and a net margin of 8.52%. equities research analysts forecast that Steel Dynamics will post 4.16 earnings per share for the current fiscal year.

Several institutional investors and hedge funds have recently modified their holdings of the company. UBS Asset Management Americas Inc. increased its position in shares of Steel Dynamics by 125.6% during the 4th quarter. UBS Asset Management Americas Inc. now owns 1,431,743 shares of the basic materials company’s stock valued at $61,751,000 after purchasing an additional 797,142 shares during the last quarter. Global X MANAGEMENT CO LLC increased its position in shares of Steel Dynamics by 21.3% during the 3rd quarter. Global X MANAGEMENT CO LLC now owns 15,728 shares of the basic materials company’s stock valued at $542,000 after purchasing an additional 2,758 shares during the last quarter. Schwab Charles Investment Management Inc. increased its position in shares of Steel Dynamics by 2.0% during the 3rd quarter. Schwab Charles Investment Management Inc. now owns 814,514 shares of the basic materials company’s stock valued at $28,077,000 after purchasing an additional 16,071 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in Steel Dynamics by 11.3% in the 4th quarter. The Manufacturers Life Insurance Company now owns 393,331 shares of the basic materials company’s stock valued at $16,965,000 after acquiring an additional 39,951 shares during the last quarter. Finally, CoreCommodity Management LLC bought a new position in Steel Dynamics in the 4th quarter valued at $146,000. 85.44% of the stock is currently owned by institutional investors and hedge funds.

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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.

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