DnB Asset Management AS Cuts Position in Steel Dynamics, Inc. (NASDAQ:STLD)

DnB Asset Management AS decreased its position in shares of Steel Dynamics, Inc. (NASDAQ:STLD) by 48.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 29,026 shares of the basic materials company’s stock after selling 27,789 shares during the period. DnB Asset Management AS’s holdings in Steel Dynamics were worth $3,311,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the company. Wilmington Savings Fund Society FSB bought a new position in shares of Steel Dynamics during the 3rd quarter valued at $25,000. ORG Wealth Partners LLC purchased a new stake in Steel Dynamics during the fourth quarter valued at about $28,000. IAG Wealth Partners LLC bought a new position in shares of Steel Dynamics during the fourth quarter valued at about $39,000. Avalon Trust Co bought a new stake in shares of Steel Dynamics in the 4th quarter valued at about $42,000. Finally, Golden State Wealth Management LLC purchased a new stake in Steel Dynamics during the 4th quarter valued at about $48,000. Institutional investors own 82.41% of the company’s stock.

Steel Dynamics Price Performance

NASDAQ STLD opened at $125.08 on Tuesday. Steel Dynamics, Inc. has a one year low of $104.60 and a one year high of $155.56. The stock has a 50-day moving average of $128.45 and a 200 day moving average of $128.90. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.08 and a current ratio of 2.53. The company has a market capitalization of $18.75 billion, a price-to-earnings ratio of 12.76, a PEG ratio of 1.05 and a beta of 1.34.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings results on Wednesday, January 22nd. The basic materials company reported $1.36 earnings per share for the quarter, missing the consensus estimate 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 in the prior year, the firm earned $2.61 EPS. On average, sell-side analysts forecast that Steel Dynamics, Inc. will post 9.01 EPS for the current year.

Steel Dynamics Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, April 11th. Investors of record on Monday, March 31st will be issued a $0.50 dividend. 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 yield of 1.60%. The ex-dividend date is Monday, March 31st. Steel Dynamics’s dividend payout ratio (DPR) is currently 20.41%.

Steel Dynamics declared that its Board of Directors has authorized a share buyback plan on Monday, February 24th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the basic materials company to reacquire up to 7.4% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

STLD has been the topic of a number of analyst reports. Morgan Stanley raised Steel Dynamics from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $145.00 to $158.00 in a research note on Friday, March 7th. BMO Capital Markets upgraded shares of Steel Dynamics from a “market perform” rating to an “outperform” rating and upped their price target for the company from $135.00 to $145.00 in a report on Monday. Citigroup cut their price target on shares of Steel Dynamics from $160.00 to $145.00 and set a “buy” rating on the stock in a report on Thursday, December 19th. KeyCorp raised shares of Steel Dynamics from a “sector weight” rating to an “overweight” rating and set a $155.00 price objective for the company in a research note on Tuesday, February 11th. Finally, JPMorgan Chase & Co. raised their target price on Steel Dynamics from $132.00 to $140.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 11th. Four analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $149.67.

Insider Activity at Steel Dynamics

In other news, SVP Glenn Pushis sold 23,649 shares of the stock in a transaction on Tuesday, February 11th. The shares were sold at an average price of $134.67, for a total value of $3,184,810.83. Following the completion of the sale, the senior vice president now directly owns 122,140 shares of the company’s stock, valued at $16,448,593.80. This represents a 16.22 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 6.30% of the stock is owned by company insiders.

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.