Steel Dynamics (STLD) Initiates Stock Buyback Plan

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Steel Dynamics (NASDAQ:STLD) declared that its Board of Directors has authorized a stock repurchase plan, which authorizes the company to repurchase $750.00 million in outstanding shares on Tuesday, September 4th. This repurchase authorization authorizes the basic materials company to purchase up to 6.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

STLD opened at $47.36 on Friday. The company has a quick ratio of 1.92, a current ratio of 3.61 and a debt-to-equity ratio of 0.66. The company has a market capitalization of $10.99 billion, a PE ratio of 12.68, a price-to-earnings-growth ratio of 0.71 and a beta of 1.31. Steel Dynamics has a 12 month low of $32.20 and a 12 month high of $52.10.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings results on Monday, July 23rd. The basic materials company reported $1.53 EPS for the quarter, beating the consensus estimate of $1.49 by $0.04. The business had revenue of $3.09 billion during the quarter, compared to analysts’ expectations of $2.91 billion. Steel Dynamics had a return on equity of 26.90% and a net margin of 10.01%. The company’s quarterly revenue was up 29.3% compared to the same quarter last year. During the same period last year, the firm earned $0.63 EPS. research analysts forecast that Steel Dynamics will post 5.47 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 12th. Investors of record on Sunday, September 30th will be issued a dividend of $0.1875 per share. The ex-dividend date of this dividend is Thursday, September 27th. This represents a $0.75 annualized dividend and a yield of 1.58%. Steel Dynamics’s dividend payout ratio is presently 28.30%.

STLD has been the subject of several recent analyst reports. Jefferies Financial Group reissued a “buy” rating and issued a $58.00 price target on shares of Steel Dynamics in a report on Wednesday, July 25th. Morgan Stanley raised Steel Dynamics from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $50.00 to $52.00 in a report on Monday, August 27th. ValuEngine cut Steel Dynamics from a “buy” rating to a “hold” rating in a report on Saturday, June 16th. Zacks Investment Research raised Steel Dynamics from a “hold” rating to a “buy” rating and set a $53.00 price target for the company in a report on Monday, July 16th. Finally, BidaskClub cut Steel Dynamics from a “buy” rating to a “hold” rating in a report on Friday, June 22nd. Four equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and an average price target of $54.17.

In related news, Director Keith E. Busse sold 3,590 shares of Steel Dynamics stock in a transaction on Monday, June 11th. The stock was sold at an average price of $50.32, for a total transaction of $180,648.80. Following the completion of the transaction, the director now directly owns 1,003,020 shares of the company’s stock, valued at $50,471,966.40. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 4.40% of the company’s stock.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. The company operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment provides hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; merchant bar products, including angles, merchant rounds, flats, channels, and reinforcing bars; beams, channels, and specialty steel sections; and threaded rod products, and cold drawn and heat treated bars.

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