Steel Dynamics Inc. (STLD) Performance and Fundamentals Dashboard tells a completely different story

Steel Dynamics Inc. (NASDAQ: STLD) stock jumped 1.59% on Thursday to $94.73 against a previous-day closing price of $93.25. With 1.35 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.9 million shares. During the session, the Steel company that operates in wider Basic Materials sector, reached to the highest price of $95.08 whereas the lowest price it dropped to was $92.83. The 52-week range on STLD shows that it touched its highest point at $136.46 and its lowest point at $62.44 during that stretch. It currently has a 1-year price target of $111.91. With its current market cap of 16.14 billion, STLD has annualized dividend of $1.70 while the current yield stands at 1.79%. Beta for the stock currently stands at 1.50.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STLD was down-trending over the past week, with a drop of -3.15%, but this was down by -7.27% over a month. Three-month performance dropped to -20.06% while six-month performance fell -11.00%. The stock gained 21.29% in the past year, while it has lost -3.04% so far this year. A look at the trailing 12-month EPS for STLD yields 18.78 with Next year EPS estimates of 9.62. For the next quarter, that number is 5.03. This implies an EPS growth rate of 34.50% for this year and -39.51% for next year. EPS is expected to grow by 28.06% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 51.50%.

Float and Shares Shorts:

At present, 171.60 million STLD shares are outstanding with a float of 165.28 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.94 million, which was 3.52% higher than short shares on Mar 30, 2023. In addition to Mr. Mark D. Millett as the firm’s Chairman, Co-Founder & CEO, Mr. Barry T. Schneider serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 86.69% of STLD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.15% of STLD, in contrast to 29.17% held by mutual funds. Shares owned by individuals account for 12.18%. As the largest shareholder in STLD with 12.40% of the stake, The Vanguard Group, Inc. holds 21,274,759 shares worth 21,274,759. A second-largest stockholder of STLD, BlackRock Fund Advisors, holds 10,565,961 shares, controlling over 6.16% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in STLD, holding 8,437,682 shares or 4.92% stake. With a 3.02% stake in STLD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 5,178,791 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.28% of STLD stock, is the second-largest Mutual Fund holder. It holds 3,915,096 shares valued at 406.97 million. American Funds Growth Fund of Ame holds 1.84% of the stake in STLD, owning 3,151,203 shares worth 327.57 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, STLD reported revenue of $6.21B and operating income of $1.62B. The EBITDA in the recently reported quarter was $1.72B and diluted EPS was $6.44.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STLD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With STLD analysts setting a high price target of $130.00 and a low target of $67.00, the average target price over the next 12 months is $110.24. Based on these targets, STLD could surge 37.23% to reach the target high and fall by -29.27% to reach the target low. Reaching the average price target will result in a growth of 16.37% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, STLD has a current ratio of $1.7, which is $1.7 over the trailing 12-months, while a dividend of $0.99 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and STLD currently yields $1.53. In the past year, STLD’s dividend yield has been $1.53, but when looking at the stock over the past five years, its yield has been $2.21. Accordingly, STLD has a current buyback yield of $11.03. This was $11.03 for the TTM, and it was $6.05 for the past five years.

Summary of Insider Activity:

Insiders traded STLD stock several times over the past three months with 19 Buys and 9 Sells. In these transactions, 344,795 shares were bought while 262,936 shares were sold. The number of buy transactions has increased to 92 while that of sell transactions has risen to 54 over the past year. The total number of shares bought during that period was 741,588 while 637,533 shares were sold.

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