DnB Asset Management AS Reduces Stake in Steel Dynamics, Inc.

DnB Asset Management AS has significantly reduced its holdings in Steel Dynamics, Inc. (NASDAQ:STLD) by 48.9% during the fourth quarter, as stated in its latest filing with the Securities and Exchange Commission. After selling 27,789 shares during this period, the institutional investor now owns 29,026 shares of the basic materials company. At the end of the last reporting period, these shares were valued at $3,311,000.

Several other hedge funds have also made adjustments to their positions in Steel Dynamics recently. For instance, Wilmington Savings Fund Society FSB established a new position in the company worth approximately $25,000 in the third quarter. In the fourth quarter alone, ORG Wealth Partners LLC invested around $28,000, IAG Wealth Partners LLC acquired a stake valued at about $39,000, and Avalon Trust Co purchased shares for approximately $42,000. Golden State Wealth Management LLC also bought a stake worth about $48,000 during the same period. Overall, institutional investors hold about 82.41% of the company's stock.

Steel Dynamics Performance Overview

The stock of Steel Dynamics, Inc. (NASDAQ:STLD) opened at $125.08. Over the past year, the stock has seen a low of $104.60 and a high of $155.56. The company maintains a 50-day moving average of $128.45 and a 200-day moving average of $128.90. In terms of financial health, Steel Dynamics has a debt-to-equity ratio of 0.32, a quick ratio of 1.08, and a current ratio of 2.53. Its market capitalization stands at $18.75 billion, with a price-to-earnings ratio of 12.76, a PEG ratio of 1.05, and a beta of 1.34.

Dividend and Share Buyback Plans

Recently, Steel Dynamics announced an increase in its quarterly dividend, which will be distributed on Friday, April 11th. Investors on record by Monday, March 31st will receive a dividend of $0.50, up from the previous dividend of $0.46. This brings the annualized dividend to $2.00, representing a yield of 1.60%. The ex-dividend date is set for March 31st, and the company's dividend payout ratio currently sits at 20.41%.

Additionally, the Steel Dynamics Board of Directors has authorized a share buyback plan, announced on February 24th, allowing for the repurchase of $1.50 billion worth of shares. This plan enables the company to buy back up to 7.4% of its outstanding stock through open market transactions, typically indicating that the company believes its stock is undervalued.

Analyst Ratings

Steel Dynamics has been the focus of various analyst discussions lately. Morgan Stanley upgraded the company from an "equal weight" to an "overweight" rating, with an increased price target from $145.00 to $158.00 as per a report on March 7th. BMO Capital Markets also upgraded Steel Dynamics from "market perform" to "outperform" and raised its price target from $135.00 to $145.00. Conversely, Citigroup lowered its price target for Steel Dynamics from $160.00 to $145.00, maintaining a "buy" rating. Additionally, KeyCorp upgraded the rating from "sector weight" to "overweight" with a $155.00 price target. JPMorgan Chase & Co. raised its target price from $132.00 to $140.00, assigning a "neutral" rating. Currently, four analysts have rated the stock as a hold, while eight have given it a buy rating, resulting in a consensus rating of "Moderate Buy" with an average price target of $149.67.

Insider Transactions

In other developments, on February 11th, SVP Glenn Pushis sold 23,649 shares of Steel Dynamics at an average price of $134.67, amounting to a total transaction value of $3,184,810.83. Following this sale, the senior vice president retains direct ownership of 122,140 shares, which are valued at $16,448,593.80, marking a decrease of 16.22% in their stock ownership. 6.30% of the stock is currently held by company insiders.

Company Overview

Steel Dynamics, Inc. is a leading steel producer and metal recycler based in the United States. The company operates through its subsidiaries, offering a variety of products such as hot rolled, cold rolled, and coated steel. Their offerings include beams, channel sections, flat bars, angles, reinforcing steel bars, and specialty shaped structural steel products, among others.

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