Steel Dynamics Inc. (NASDAQ:STLD) finished Friday with an addition of $0.21 to close at $102.30, an upside of 0.21 percent. An average of 976,940 shares of common stock have been traded in the last five days. There was a fall of -$1.49 in the past week, and it reached a new high 26 times over the past 12 months. The last 20 days have seen an average of 1,199,125 shares traded, while the 50-day average volume stands at 1,421,422.
STLD stock has decreased by -5.18% in the last month. The company shares reached their 1-month lowest point of $100.12 on 07/20/23. With the stock rallying to its 52-week high on 03/06/23, shares of the company touched a low of $69.12 and a high of $136.46 in 52 weeks. It has reached a new high 16 times so far this year and achieved 4.71% or $4.60 in price. In spite of this, the price is down -25.03% from the 52-week high.
Insider Transactions
STLD stock investors should be aware that Steel Dynamics Inc. (STLD) stock had its last reported insider trading activity 12 days ago on Jul 31. In this transaction, the insider spent $181,659. Director, MARCUCCILLI JAMES C, disposed of 2,500 shares at a price of $108.90 on Dec 02. The insider now owns more than $272,250 worth of shares. Prior to that, Director BUSSE KEITH E went on to Sale 244 shares at $95.50 each on Oct 25. An amount of $23,303 was transacted.
Valuation Metrics
Steel Dynamics Inc. (STLD) has a trailing price-to-earnings (P/E) ratio of 5.97. The stock’s beta is 1.53. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.86, the price-to-book (PB) ratio at 2.11, and the price-to-cash flow ratio at 5.30.
The company has a payout ratio of 6.50%. The company’s most recent quarterly dividend payment was $0.4250 a share, without any change from last year. Its latest increase dividend $0.0850 reported on Monday February 27 2023.
Financial Health
The quick ratio of Steel Dynamics Inc. for the three months ended June 29 was 2.50, and the current ratio was 4.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.36 and a total debt to equity ratio of 0.37 for the quarter ending June 29. Steel Dynamics Inc.’s EBITDA margin for the year ending June 29 is 24.49%, while its operating margin for the same period stands at 24.90%. Its gross profit as reported stood at $6.12 billion compared to revenue of $22.26 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Steel Dynamics Inc.’s return on assets was 27.50%.
Earnings Surprise
For the three-month period that ended June 29, Steel Dynamics Inc. had $611.7 million in cash and short-term investments compared to $3.01 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $812.11 million in the quarter, while revenues of $637.31 million were shrunk -48.94%. The analyst consensus anticipated Steel Dynamics Inc.’s latest quarter earnings to come in at $4.81 per share, but it turned out to be $4.81, a 0.00% surprise. For the quarter, EBITDA amounted to $1.17 billion. Shareholders own equity worth $165.64 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Steel Dynamics Inc. (STLD) price momentum. RSI 9-day as of the close on 11 August was 40.75%, suggesting the stock is Neutral, with historical volatility in this time frame at 16.29%.
As of today, STLD’s price is $103.47 -1.44% or -$1.49 from its 5-day moving average. STLD is currently trading -3.82% lower than its 20-day SMA and -4.99% lower than its 100-day SMA. However, the stock’s current price level is +11.32% above the SMA50 and +6.27% above the SMA200.
The stochastic %K and %D were 31.93% and 42.41%, respectively, and the average true range (ATR) was 2.91. With the 14-day stochastic at 17.65% and the average true range at 3.01, the RSI (14) stands at 44.61%. The stock has reached -1.34 on the 9-day MACD Oscillator while the 14-day reading was at -1.35.
Analyst Ratings
Exane BNP Paribas downgraded Steel Dynamics Inc. (NASDAQ: STLD) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Steel Dynamics Inc. (STLD) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell STLD, while 10 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.
What is STLD’s price target for the next 12 months?
Analysts predict a range of price targets between $69.00 and $130.00, with a median target of $114.40. Taking a look at these predictions, the average price target given by analysts for Steel Dynamics Inc. (STLD) stock is $107.49.
