Look At Analyst Expectations For A Better Read On Steel Dynamics Inc. (NASDAQ: STLD)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Steel Dynamics Inc. (NASDAQ:STLD). The institutional investor has increased its shareholding in the Basic Materials company by 0.70% to 19.36 million shares with purchase of 0.13 million shares. This fresh investment now brings its stake to 9.21% valued currently at $505.11 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.22 million to 8.74 million shares. And Victory Capital Management, Inc. has lifted its position by 73.75% or 3.02 million shares – to 7.12 million shares.

    With over 1.63 million Steel Dynamics Inc. (STLD) shares trading Friday and a closing price of $28.37 on the day, the dollar volume was approximately $46.34 million. The shares have shown a positive weekly performance of 7.14% and its price on 07/24/20 gained nearly 1.94%. Currently, there are 213.25M common shares owned by the public and among those 199.49M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for STLD have a consensus price objective of $28.70. The analysts have set the share’s price value over the next 12 months at a high of $35.00 and a low of $23.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Steel Dynamics Inc. stock is 2.50 for the next 12 months. The average price target is -0.96% below its last price level and a downside to the estimated low will see the stock lose -23.35% over that period. But an upside of 18.94% will see the stock hit the forecast high price target while mean target price for the stock is $28.00.

    Insiders at the company have transacted a total of 109 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 87 of these insider trades were purchases, accounting for 436,055 shares. Insider sales of the common stock occurred on 22 occasions, with total insider shares sold totaling 175,804 shares.

    The top 3 mutual fund holders in Steel Dynamics Inc. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 5.71 million shares of the company’s stock, all valued at over $149.08 million. The company sold -0.19 million shares recently to bring their total holdings to about 2.72% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.3 million shares to bring its total holdings to over 5.0 million shares at a value of $130.57 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.38% of the shares outstanding.

    Shares of Steel Dynamics Inc. (NASDAQ: STLD) opened at $27.63, down -$0.2 from a prior closing price of $27.83. However, the script later closed the day at $28.37, up 1.94%. The company’s stock has a 5-day price change of 7.14% and 13.80% over the past three months. STLD shares are trading -16.66% year to date (YTD), with the 12-month market performance down to -12.98% lower. It has a 12-month low price of $14.98 and touched a high of $35.78 over the same period. Currently, 1.63 million shares have been traded, compared to an average intraday trading volume of 2.00 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 8.07%, 7.38%, and 1.43% respectively.

    Institutional ownership of Steel Dynamics Inc. (NASDAQ: STLD) shares accounts for 86.70% of the company’s 213.25M shares outstanding. Mutual fund holders own 49.92%, while other institutional holders and individual stakeholders account for 9.98% and 36.24% respectively.

    It has a market capitalization of $5.91B and a beta (3y monthly) value of 1.44. The stock’s trailing 12-month PE ratio is 11.43, while the earnings-per-share (ttm) stands at $2.48. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.51% over the week and 3.60% over the month.

    Analysts forecast that Steel Dynamics Inc. (STLD) will achieve an EPS of $0.35 for the current quarter, $0.4 for the next quarter and $2.19 for 2021. The lowest estimate earnings-per-share for the quarter is $0.26 while analysts give the company a high EPS estimate of $0.54. Comparatively, EPS for the current quarter was $0.69 a year ago. Earnings per share for the fiscal year are expected to decrease by -43.20%, and 3.84% over the next financial year. EPS should shrink at an annualized rate of -6.52% over the next five years, compared to 35.50% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Steel Dynamics Inc. (STLD) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 6 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the STLD, a number of firms have released research notes about the stock. CFRA stated their Buy rating for the stock in a research note on July 22, 2020, with the firm’s price target at. KeyBanc Capital Markets coverage for the Steel Dynamics Inc. (STLD) stock in a research note released on May 13, 2020 offered a Sector Weight rating with a price target of. BofA/Merrill was of a view on May 06, 2020 that the stock is Underperform, while Deutsche Bank gave the stock Buy rating on March 30, 2020, issuing a price target of $30- $27. KeyBanc Capital Markets on their part issued Overweight rating on March 24, 2020.


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