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

Steel Dynamics, Inc. (NASDAQ:STLD) was the target 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. Based on an average daily trading volume, of 1,740,000 shares, the days-to-cover ratio is currently 1.9 days. Currently, 2.4% of the shares of the stock are short sold.

Steel Dynamics Trading Up 1.7 %

Shares of NASDAQ STLD opened at $127.09 on Wednesday. Steel Dynamics has a one year low of $104.60 and a one year high of $155.56. The firm has a market capitalization of $19.08 billion, a PE ratio of 12.97, a PEG ratio of 1.05 and a beta of 1.34. 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 business has a 50-day moving average price of $127.65 and a two-hundred day moving average price of $127.98.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings results 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 return on equity of 17.32% and a net margin of 8.76%. During the same period in the previous year, the company earned $2.61 EPS. As a group, analysts predict that Steel Dynamics will post 9.01 earnings per share for the current fiscal year.

Steel Dynamics announced that its board has authorized a share buyback program on Monday, February 24th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits 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 shares are undervalued.

Steel Dynamics Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, April 11th. Stockholders of record on Monday, March 31st will be paid a dividend of $0.50 per share. The ex-dividend date is Monday, March 31st. This is an increase 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 1.57%. Steel Dynamics’s dividend payout ratio (DPR) is 20.41%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the company. The Goldman Sachs Group assumed coverage on Steel Dynamics in a research report on Monday, December 2nd. They issued a “neutral” rating and a $155.00 price target for the company. Citigroup decreased their price target on Steel Dynamics from $160.00 to $145.00 and set a “buy” rating for the company in a research report on Thursday, December 19th. StockNews.com upgraded Steel Dynamics from a “sell” rating to a “hold” rating in a research report on Thursday, March 6th. Morgan Stanley upgraded Steel Dynamics from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $145.00 to $158.00 in a research report on Friday, March 7th. Finally, Wolfe Research upgraded Steel Dynamics from an “underperform” rating to a “peer perform” rating in a research report on Thursday, February 27th. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, Steel Dynamics presently has a consensus rating of “Moderate Buy” and an average target price of $148.56.

Insider Activity at Steel Dynamics

In related news, SVP Glenn Pushis sold 23,649 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the senior vice president now owns 122,140 shares of the company’s stock, valued at $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 is available through the SEC website. Company insiders own 6.00% of the company’s stock.

Institutional Investors Weigh In On Steel Dynamics

Hedge funds and other institutional investors have recently made changes to their positions in the company. Wilmington Savings Fund Society FSB purchased a new stake in shares of Steel Dynamics during the 3rd quarter worth about $25,000. ORG Wealth Partners LLC bought a new position in shares of Steel Dynamics in the 4th quarter valued at approximately $28,000. Private Trust Co. NA raised its stake in shares of Steel Dynamics by 532.6% in the 3rd quarter. Private Trust Co. NA now owns 291 shares of the basic materials company’s stock valued at $37,000 after acquiring an additional 245 shares in the last quarter. IAG Wealth Partners LLC bought a new position in shares of Steel Dynamics in the 4th quarter valued at approximately $39,000. Finally, Investment Management Corp VA ADV bought a new position in shares of Steel Dynamics in the 4th quarter valued at approximately $40,000. 82.41% of the stock is owned by hedge funds and other institutional investors.

About Steel Dynamics

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.