CFRA lifts Steel Dynamics Inc. [STLD] price estimate. Who else is bullish?

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Steel Dynamics Inc. [NASDAQ: STLD] traded at a low on 08/04/20, posting a -0.82 loss after which it closed the day’ session at $27.91. The company report on August 3, 2020 that Steel Dynamics Completes Acquisition of a Mexican Metals Recycling Company.

Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced the completion of the acquisition of Zimmer, S.A. de C.V. (“Zimmer”), as part of its raw material procurement strategy to support its new Texas flat roll steel mill, which is planned to begin operations mid-year 2021. The transaction was funded with available cash.

Zimmer is headquartered in Monterrey, Mexico and operates a ferrous and nonferrous scrap metals recycling business. Zimmer’s primary operations are comprised of six scrap processing facilities strategically positioned near high-volume industrial scrap sources located throughout Central and Northern Mexico. The company also operates several third-party scrap processing locations. These combined facilities currently ship approximately 500,000 gross tons of scrap annually and have an estimated annual processing capability of two million gross tons.

The results of the trading session contributed to over 1453997 shares changing hands. Over the past one week, the price volatility of Steel Dynamics Inc. stands at 2.43% while the volatility over the past one month is 3.30%.

The market cap for STLD stock reached $5.90 billion, with 213.25 million shares outstanding and 199.49 million shares in the current float. Compared to the average trading volume of 1.93M shares, STLD reached a trading volume of 1453997 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Steel Dynamics Inc. [STLD]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STLD shares is $28.10 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STLD stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

CFRA have made an estimate for Steel Dynamics Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 22, 2020. The new note on the price target was released on May 13, 2020, representing the official price target for Steel Dynamics Inc. stock. Previously, the target price had yet another raise to $23, while BofA/Merrill analysts kept a Underperform rating on STLD stock. On March 30, 2020, analysts decreased their price target for STLD shares from 30 to 27.

The Average True Range (ATR) for Steel Dynamics Inc. is set at 0.90, with the Price to Sales ratio for STLD stock in the period of the last 12 months amounting to 0.62. The Price to Book ratio for the last quarter was 1.45, with the Price to Cash per share for the same quarter was set at 6.89. Price to Free Cash Flow for STLD in the course of the last twelve months was 7.94 with Quick ratio for the last quarter at 2.40.

How has STLD stock performed recently?

Steel Dynamics Inc. [STLD] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.12. With this latest performance, STLD shares gained by 7.55% in over the last four-week period, additionally sinking by -6.76% over the last 6 months – not to mention a drop of -3.33% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for STLD stock in for the last two-week period is set at 53.80, with the RSI for the last a single of trading hit 57.19, and the three-weeks RSI is set at 55.30 for Steel Dynamics Inc. [STLD]. The present Moving Average for the last 50 days of trading for this stock 26.97, while it was recorded at 27.80 for the last single week of trading, and 27.92 for the last 200 days.

Steel Dynamics Inc. [STLD]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Steel Dynamics Inc. [STLD] shares currently have an operating margin of +9.44 and a Gross Margin at +13.61. Steel Dynamics Inc.’s Net Margin is presently recorded at +6.41.

Return on Total Capital for STLD is now 15.04, given the latest momentum, and Return on Invested Capital for the company is 10.27. Return on Equity for this stock inclined to 16.75, with Return on Assets sitting at 8.66. When it comes to the capital structure of this company, Steel Dynamics Inc. [STLD] has a Total Debt to Total Equity ratio set at 68.94. Additionally, STLD Total Debt to Total Capital is recorded at 40.81, with Total Debt to Total Assets ending up at 36.24. Long-Term Debt to Equity for the company is recorded at 66.31, with the Long-Term Debt to Total Capital now at 39.25.

Reflecting on the efficiency of the workforce at the company, Steel Dynamics Inc. [STLD] managed to generate an average of $80,036 per employee. Receivables Turnover for the company is 11.09 with a Total Asset Turnover recorded at a value of 1.35.Steel Dynamics Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 4.00.

Earnings analysis for Steel Dynamics Inc. [STLD]

With the latest financial reports released by the company, Steel Dynamics Inc. posted 0.69/share EPS, while the average EPS was predicted by analysts to be reported at 0.69/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for STLD. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Steel Dynamics Inc. go to -6.52%.

Insider trade positions for Steel Dynamics Inc. [STLD]

There are presently around $4,964 million, or 86.80% of STLD stock, in the hands of institutional investors. The top three institutional holders of STLD stocks are: BLACKROCK INC. with ownership of 21,748,693, which is approximately -2.478% of the company’s market cap and around 5.10% of the total institutional ownership; VANGUARD GROUP INC, holding 19,898,549 shares of the stock with an approximate value of $555.37 million in STLD stocks shares; and STATE STREET CORP, currently with $244.07 million in STLD stock with ownership of nearly 2.576% of the company’s market capitalization.

Positions in Steel Dynamics Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 199 institutional holders increased their position in Steel Dynamics Inc. [NASDAQ:STLD] by around 15,982,401 shares. Additionally, 243 investors decreased positions by around 17,418,541 shares, while 56 investors held positions by with 144,447,186 shares. The mentioned changes placed institutional holdings at 177,848,128 shares, according to the latest SEC report filing. STLD stock had 60 new institutional investments in for a total of 2,238,856 shares, while 80 institutional investors sold positions of 3,694,827 shares during the same period.

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