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

Steel Dynamics, Inc. (NASDAQ:STLD) was the recipient of a significant increase in short interest in the month of February. As of February 15th, there was short interest totalling 3,970,000 shares, an increase of 31.9% from the January 31st total of 3,010,000 shares. Based on an average daily trading volume, of 1,650,000 shares, the days-to-cover ratio is currently 2.4 days. Currently, 2.8% of the company’s shares are sold short.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. UBS Group reaffirmed a “neutral” rating and set a $149.00 target price (up from $145.00) on shares of Steel Dynamics in a research report on Thursday, December 12th. JPMorgan Chase & Co. decreased their target price on Steel Dynamics from $134.00 to $132.00 and set a “neutral” rating for the company in a research report on Friday, January 17th. Wolfe Research raised Steel Dynamics from an “underperform” rating to a “peer perform” rating in a research report on Thursday, February 27th. StockNews.com lowered Steel Dynamics from a “hold” rating to a “sell” rating in a research note on Wednesday, February 26th. Finally, Citigroup dropped their target price 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. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, Steel Dynamics currently has a consensus rating of “Hold” and an average target price of $146.22.

Insider Transactions 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 shares were sold at an average price of $134.67, for a total value of $3,184,810.83. Following 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 6.00% of the company’s stock.

Institutional Investors Weigh In On Steel Dynamics

Several hedge funds have recently added to or reduced their stakes in STLD. Wilmington Savings Fund Society FSB acquired a new stake in Steel Dynamics during the third quarter worth about $25,000. ORG Wealth Partners LLC purchased a new stake in Steel Dynamics in the 4th quarter worth approximately $28,000. Private Trust Co. NA grew its stake in shares of 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 during the period. IAG Wealth Partners LLC purchased a new position in shares of Steel Dynamics during the 4th quarter valued at approximately $39,000. Finally, Investment Management Corp VA ADV acquired a new position in shares of Steel Dynamics in the 4th quarter valued at $40,000. 82.41% of the stock is owned by hedge funds and other institutional investors.

Steel Dynamics Stock Performance

Shares of STLD stock opened at $130.50 on Tuesday. Steel Dynamics has a 12-month low of $104.60 and a 12-month high of $155.56. The business’s fifty day simple moving average is $125.69 and its 200-day simple moving average is $127.54. 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 company has a market cap of $19.87 billion, a PE ratio of 13.32, a PEG ratio of 1.05 and a beta of 1.35.

Steel Dynamics (NASDAQ:STLD) last announced its 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 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. Analysts expect 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 allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the basic materials company to reacquire up to 7.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are 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 issued a $0.50 dividend. The ex-dividend date of this dividend is Monday, March 31st. This is a positive change 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 1.53%. Steel Dynamics’s dividend payout ratio is currently 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.