Steel Dynamics, Inc. (NASDAQ:STLD) Sees Significant Decrease in Short Interest

Steel Dynamics, Inc. (NASDAQ:STLD) was the recipient of a significant drop in short interest in February. As of February 28th, there was short interest totalling 3,340,000 shares, a drop of 15.9% from the February 13th total of 3,970,000 shares. Approximately 2.4% of the company’s shares are short sold. Based on an average daily trading volume, of 1,740,000 shares, the days-to-cover ratio is presently 1.9 days.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on STLD shares. StockNews.com upgraded Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Thursday, March 6th. Citigroup reduced their target price on Steel Dynamics from $160.00 to $145.00 and set a “buy” rating on the stock in a research report on Thursday, December 19th. Jefferies Financial Group upgraded Steel Dynamics from a “hold” rating to a “buy” rating and lifted their target price for the company from $125.00 to $145.00 in a research report on Friday, January 24th. KeyCorp upgraded Steel Dynamics from a “sector weight” rating to an “overweight” rating and set a $155.00 target price on the stock in a research report on Tuesday, February 11th. Finally, JPMorgan Chase & Co. lifted their target price on Steel Dynamics from $132.00 to $140.00 and gave the company a “neutral” rating in a research report on Tuesday, March 11th. Six equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $148.56.

Insider Buying and Selling

In related 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 transaction, the senior vice president now owns 122,140 shares in the company, valued at approximately $16,448,593.80. This trade represents a 16.22 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 6.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Wilmington Savings Fund Society FSB acquired a new position in Steel Dynamics during the 3rd quarter worth $25,000. ORG Wealth Partners LLC acquired a new position in Steel Dynamics during the 4th quarter worth $28,000. Private Trust Co. NA grew its stake in 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 position in Steel Dynamics during the 4th quarter worth $39,000. Finally, Investment Management Corp VA ADV acquired a new position in Steel Dynamics during the 4th quarter worth $40,000. 82.41% of the stock is owned by institutional investors and hedge funds.

Steel Dynamics Trading Up 0.6 %

Shares of NASDAQ STLD opened at $125.65 on Tuesday. Steel Dynamics has a twelve month low of $104.60 and a twelve month high of $155.56. The company has a current ratio of 2.53, a quick ratio of 1.08 and a debt-to-equity ratio of 0.32. The stock has a fifty day simple moving average of $127.50 and a 200-day simple moving average of $127.93. The stock has a market capitalization of $18.87 billion, a PE ratio of 12.61, a PEG ratio of 1.05 and a beta of 1.34.

Steel Dynamics (NASDAQ:STLD) last issued its quarterly earnings data on Wednesday, January 22nd. The basic materials company reported $1.36 earnings per share for the quarter, missing analysts’ consensus estimates 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 period last year, the firm earned $2.61 earnings per share. On average, equities analysts forecast that Steel Dynamics will post 9.01 earnings per share for the current year.

Steel Dynamics declared that its board has approved a stock buyback program on Monday, February 24th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the basic materials company to repurchase up to 7.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Steel Dynamics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 11th. Stockholders of record on Monday, March 31st will be paid a $0.50 dividend. The ex-dividend date of this dividend is Monday, March 31st. This is a boost from Steel Dynamics’s previous quarterly dividend of $0.46. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.59%. Steel Dynamics’s payout ratio is presently 20.41%.

Steel Dynamics Company Profile

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.