Steel Dynamics (NASDAQ:STLD) Shares Gap Up on Better-Than-Expected Earnings

Shares of Steel Dynamics, Inc. (NASDAQ:STLD) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $134.16, but opened at $141.06. Steel Dynamics shares last traded at $136.22, with a volume of 417,650 shares trading hands.

The basic materials company reported $3.67 earnings per share for the quarter, topping analysts’ consensus estimates of $3.54 by $0.13. Steel Dynamics had a net margin of 13.04% and a return on equity of 29.49%. The business had revenue of $4.69 billion during the quarter, compared to analyst estimates of $4.74 billion. During the same period in the prior year, the business posted $4.01 earnings per share. The company’s revenue was down 4.1% on a year-over-year basis.

Steel Dynamics Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Sunday, April 14th. Stockholders of record on Sunday, March 31st were issued a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 1.42%. The ex-dividend date was Wednesday, March 27th. This is an increase from Steel Dynamics’s previous quarterly dividend of $0.43. Steel Dynamics’s payout ratio is 12.61%.

Analyst Ratings Changes

STLD has been the topic of several research analyst reports. UBS Group lowered their target price on shares of Steel Dynamics from $120.00 to $119.00 and set a “neutral” rating on the stock in a report on Wednesday, January 24th. JPMorgan Chase & Co. upped their price target on shares of Steel Dynamics from $100.00 to $118.00 and gave the company an “underweight” rating in a research note on Tuesday, April 16th. Citigroup upped their price target on shares of Steel Dynamics from $130.00 to $160.00 and gave the company a “buy” rating in a research note on Wednesday, March 13th. Finally, BMO Capital Markets upped their price target on shares of Steel Dynamics from $110.00 to $120.00 and gave the company a “market perform” rating in a research note on Monday, March 18th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and one has given a buy rating to the stock. According to MarketBeat, Steel Dynamics has a consensus rating of “Hold” and a consensus target price of $121.17.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. CVA Family Office LLC bought a new position in Steel Dynamics during the fourth quarter valued at $28,000. Turtle Creek Wealth Advisors LLC bought a new position in Steel Dynamics during the fourth quarter valued at $29,000. Lindbrook Capital LLC increased its position in Steel Dynamics by 117.5% during the fourth quarter. Lindbrook Capital LLC now owns 248 shares of the basic materials company’s stock valued at $29,000 after acquiring an additional 134 shares during the last quarter. Security National Bank bought a new position in Steel Dynamics during the fourth quarter valued at $30,000. Finally, Riverview Trust Co bought a new position in Steel Dynamics during the first quarter valued at $50,000. Institutional investors own 82.41% of the company’s stock.

Steel Dynamics Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.91 and a quick ratio of 1.67. The firm has a market cap of $20.52 billion, a P/E ratio of 8.90 and a beta of 1.42. The stock’s 50-day simple moving average is $136.80 and its two-hundred day simple moving average is $121.97.

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.