Zacks Research Forecasts Reduced Earnings for Steel Dynamics

Steel Dynamics, Inc. (NASDAQ:STLD) – Equities research analysts at Zacks Research decreased their FY2024 earnings per share estimates for shares of Steel Dynamics in a note issued to investors on Wednesday, November 27th. Zacks Research analyst R. Department now expects that the basic materials company will earn $9.99 per share for the year, down from their prior estimate of $10.00. The consensus estimate for Steel Dynamics’ current full-year earnings is $10.10 per share. Zacks Research also issued estimates for Steel Dynamics’ Q4 2024 earnings at $1.55 EPS, Q1 2025 earnings at $2.23 EPS, Q4 2025 earnings at $2.18 EPS, FY2025 earnings at $9.18 EPS, Q1 2026 earnings at $3.09 EPS and FY2026 earnings at $10.46 EPS.

Steel Dynamics (NASDAQ:STLD) last released its quarterly earnings data on Wednesday, October 16th. The basic materials company reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.98 by $0.07. The firm had revenue of $4.34 billion during the quarter, compared to analysts’ expectations of $4.18 billion. Steel Dynamics had a return on equity of 19.82% and a net margin of 9.80%. Steel Dynamics’s revenue was down 5.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.47 earnings per share.

A number of other equities research analysts also recently issued reports on STLD. JPMorgan Chase & Co. lifted their price target on shares of Steel Dynamics from $129.00 to $134.00 and gave the company a “neutral” rating in a research report on Friday, October 18th. Morgan Stanley reduced their price objective on Steel Dynamics from $138.00 to $131.00 and set an “equal weight” rating for the company in a report on Wednesday, September 18th. Bank of America raised Steel Dynamics from a “neutral” rating to a “buy” rating and upped their target price for the company from $140.00 to $155.00 in a report on Tuesday, October 1st. BMO Capital Markets lifted their price target on Steel Dynamics from $130.00 to $135.00 and gave the stock a “market perform” rating in a research note on Friday, October 18th. Finally, UBS Group upgraded shares of Steel Dynamics from a “neutral” rating to a “buy” rating and increased their price target for the company from $129.00 to $145.00 in a research report on Tuesday, September 3rd. Four equities research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $144.29.

Steel Dynamics Stock Performance

Shares of STLD opened at $145.27 on Monday. The company has a quick ratio of 1.26, a current ratio of 2.39 and a debt-to-equity ratio of 0.31. Steel Dynamics has a 52-week low of $104.60 and a 52-week high of $155.56. The company has a 50-day simple moving average of $135.06 and a 200-day simple moving average of $127.82. The company has a market capitalization of $22.12 billion, a PE ratio of 13.15 and a beta of 1.31.

Institutional Investors Weigh In On Steel Dynamics

Hedge funds and other institutional investors have recently made changes to their positions in the company. B. Riley Wealth Advisors Inc. acquired a new position in shares of Steel Dynamics during the 1st quarter worth about $337,000. Atria Investments Inc lifted its holdings in shares of Steel Dynamics by 9.3% during the first quarter. Atria Investments Inc now owns 14,130 shares of the basic materials company’s stock worth $2,095,000 after buying an additional 1,205 shares during the last quarter. Cetera Investment Advisers grew its stake in shares of Steel Dynamics by 172.2% in the first quarter. Cetera Investment Advisers now owns 24,220 shares of the basic materials company’s stock worth $3,590,000 after acquiring an additional 15,321 shares during the last quarter. Cetera Advisors LLC increased its position in Steel Dynamics by 189.9% during the first quarter. Cetera Advisors LLC now owns 9,273 shares of the basic materials company’s stock worth $1,375,000 after acquiring an additional 6,074 shares during the period. Finally, GAMMA Investing LLC raised its stake in Steel Dynamics by 27.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,050 shares of the basic materials company’s stock valued at $265,000 after purchasing an additional 436 shares during the last quarter. 82.41% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Steel Dynamics

In other news, SVP Richard A. Poinsatte sold 2,000 shares of the company’s stock in a transaction on Friday, November 15th. The stock was sold at an average price of $138.75, for a total transaction of $277,500.00. Following the completion of the sale, the senior vice president now directly owns 21,101 shares of the company’s stock, valued at $2,927,763.75. This represents a 8.66 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Miguel Alvarez sold 6,650 shares of Steel Dynamics stock in a transaction that occurred on Wednesday, November 13th. The stock was sold at an average price of $143.00, for a total transaction of $950,950.00. Following the transaction, the senior vice president now owns 116,949 shares in the company, valued at approximately $16,723,707. The trade was a 5.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 28,591 shares of company stock valued at $3,885,938. Insiders own 6.00% of the company’s stock.

Steel Dynamics Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 10th. Shareholders of record on Tuesday, December 31st will be paid a dividend of $0.46 per share. The ex-dividend date is Tuesday, December 31st. This represents a $1.84 dividend on an annualized basis and a yield of 1.27%. Steel Dynamics’s dividend payout ratio (DPR) is 16.65%.

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.