Steel Dynamics Inc. [NASDAQ: STLD] surged by $0.85 during the normal trading session on Wednesday and reaching a high of $59.9219 during the day while it closed the day at $59.60. The company report on June 16, 2021 that Steel Dynamics Provides Second Quarter 2021 Record Earnings Guidance.
Steel Dynamics, Inc. (NASDAQ/GS: STLD) provided second quarter 2021 earnings guidance in the range of $3.26 to $3.30 per diluted share. Excluding the impact from costs associated with the construction of the company’s Sinton Texas Flat Roll Steel Mill growth investment of approximately $23 million, or $0.08 per diluted share, the company expects second quarter 2021 adjusted earnings to be in the range of $3.34 to $3.38 per diluted share, which would represent record quarterly earnings for the company.
Comparatively, the company’s sequential first quarter 2021 earnings were $2.03 per diluted share, and adjusted earnings were $2.10 per diluted share, excluding the impact of construction costs related to the Texas steel mill of $0.07 per diluted share. Prior year second quarter earnings were $0.36 per diluted share, and adjusted earnings were $0.47 per diluted share, excluding the impact of company’s June 2020 refinancing activities of approximately $25 million, or $0.08 per diluted share, and costs associated with the construction of the company’s Texas steel mill of $0.03 per diluted share.
Steel Dynamics Inc. stock has also loss -0.15% of its value over the past 7 days. However, STLD stock has inclined by 17.42% in the 3 months of the year. Over the past six months meanwhile, it has gained 63.87% and gained 61.65% year-on date.
The market cap for STLD stock reached $12.74 billion, with 211.01 million shares outstanding and 200.53 million shares in the current float. Compared to the average trading volume of 2.42M shares, STLD reached a trading volume of 1620589 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to 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 $72.00 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 2.00. 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.
JP Morgan have made an estimate for Steel Dynamics Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on June 16, 2021. While these analysts kept the previous recommendation, BofA Securities raised their target price from $49 to $61. The new note on the price target was released on April 20, 2021, representing the official price target for Steel Dynamics Inc. stock. Previously, the target price had yet another raise to $57, while Goldman analysts kept a Buy rating on STLD stock.
The Average True Range (ATR) for Steel Dynamics Inc. is set at 2.07, with the Price to Sales ratio for STLD stock in the period of the last 12 months amounting to 1.21. The Price to Book ratio for the last quarter was 2.66.
STLD stock trade performance evaluation
Steel Dynamics Inc. [STLD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.15. With this latest performance, STLD shares dropped by -7.60% in over the last four-week period, additionally plugging by 63.87% over the last 6 months – not to mention a rise of 128.44% 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 45.59, with the RSI for the last a single of trading hit 43.43, and the three-weeks RSI is set at 48.55 for Steel Dynamics Inc. [STLD]. The present Moving Average for the last 50 days of trading for this stock 60.64, while it was recorded at 59.64 for the last single week of trading, and 44.24 for the last 200 days.
Steel Dynamics Inc. [STLD]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Steel Dynamics Inc. [STLD] shares currently have an operating margin of +9.23 and a Gross Margin at +14.21. Steel Dynamics Inc.’s Net Margin is presently recorded at +5.74.
Return on Total Capital for STLD is now 12.30, given the latest momentum, and Return on Invested Capital for the company is 7.75. Return on Equity for this stock inclined to 13.08, with Return on Assets sitting at 6.45. When it comes to the capital structure of this company, Steel Dynamics Inc. [STLD] has a Total Debt to Total Equity ratio set at 73.48. Additionally, STLD Total Debt to Total Capital is recorded at 42.36, with Total Debt to Total Assets ending up at 34.24. Long-Term Debt to Equity for the company is recorded at 71.08, with the Long-Term Debt to Total Capital now at 40.97.
Reflecting on the efficiency of the workforce at the company, Steel Dynamics Inc. [STLD] managed to generate an average of $57,228 per employee. Receivables Turnover for the company is 10.57 with a Total Asset Turnover recorded at a value of 1.12.Steel Dynamics Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 2.90.
Earnings per share (EPS) analysis for Steel Dynamics Inc. [STLD] stock
With the latest financial reports released by the company, Steel Dynamics Inc. posted 0.47/share EPS, while the average EPS was predicted by analysts to be reported at 0.35/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 34.30%. 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 4.26%.
Steel Dynamics Inc. [STLD]: Insider Ownership positions
There are presently around $10,263 million, or 85.20% of STLD stock, in the hands of institutional investors. The top three institutional holders of STLD stocks are: BLACKROCK INC. with ownership of 24,687,838, which is approximately 8.929% of the company’s market cap and around 5.00% of the total institutional ownership; VANGUARD GROUP INC, holding 19,880,341 shares of the stock with an approximate value of $1.18 billion in STLD stocks shares; and STATE STREET CORP, currently with $547.16 million in STLD stock with ownership of nearly 6.761% of the company’s market capitalization.
Positions in Steel Dynamics Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 237 institutional holders increased their position in Steel Dynamics Inc. [NASDAQ:STLD] by around 20,558,293 shares. Additionally, 238 investors decreased positions by around 18,974,591 shares, while 53 investors held positions by with 132,665,268 shares. The mentioned changes placed institutional holdings at 172,198,152 shares, according to the latest SEC report filing. STLD stock had 79 new institutional investments in for a total of 3,951,179 shares, while 45 institutional investors sold positions of 2,590,415 shares during the same period.