Steel Dynamics, Inc., together with its subsidiaries, manufactures and sells steel products; processes and sells recycled ferrous and nonferrous metals; and fabricates and sells steel joist and deck products in the United States and internationally. The company operates through Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations segments. The Steel Operations segment provides a range of sheet steel products, such as hot roll, cold roll, and coated steel products; structural steel beams and pilings to construction market; various rail products for the railroad industry; rounds, round-cornered squares, and round engineered bars; angles, merchant rounds, flats and channels, and reinforcing bar; and beams, channels, and specialty steel sections. This segment offers its products for automotive, construction, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube markets. The Metals Recycling Operations segment is involved in the purchase, process, and resale of ferrous and nonferrous scrap metals into reusable forms and grades. Its ferrous products include heavy melting steel, busheling, bundled scrap, shredded scrap, steel turnings, and cast iron products; and nonferrous products comprise aluminum, brass, copper, stainless steel, and other nonferrous metals. This segment also provides transportation logistics, management, marketing, brokerage, and consulting services related to the scrap industry. The Steel Fabrication Operations segment produces steel building components comprising steel joists, girders, trusses, and steel decks primarily for the non-residential construction industry. The company also produces pig and hot briquetted iron; and iron nugget products that are used in electric arc furnace steel mills. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana.
Nice bump up ahead of ER after the close today. Q3 ER Estimates: Earnings Whisper: N/A Consensus: $0.65 Revenue: $2.04 Bil Date & Time of ER: Wednesday Oct 19 6:00 PM ET
Reported after close today (10/19/16) Earnings: EPS $0.65 Revenue $2.1B Estimates: EPS $0.67 Revenue $2.09B Down 0.02% after hours
Analyst Upgrade/Downgrade Update Brokerage firm: Cowen Change: Coverage Reiterated/Price Target Changed Previous Rating: N/A Current Rating: Outperform Previous Price Target: $33 Current Price Target: $31
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Analyst Upgrade/Downgrade Update Brokerage firm: Rosenblatt Change: Downgrade Previous Rating: Buy Current Rating: Neutral Previous Price Target: N/A Current Price Target: N/A
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Dividend Stock Spotlight: Steel Dynamics (STLD) For the first time since last October, Steel Dynamics (STLD) closed above its 200-DMA yesterday. This comes after the stock has remained in a long term downtrend over the past year after the first round of tariffs on steel were imposed. Although the company is not out of the woods yet on the political front, this long term downtrend was broken earlier this summer. Afterward, the stock pulled back to retest its downtrend. STLD then made a higher low at the end of August (8/27), and has since risen over 23%. In the process, STLD not only took out its 50-day moving average, but it also closed marginally above its 200-DMA, holding above there today. Even with the recent move higher, STLD's yield remains attractive. With a current yield of just under 3%—$0.24 per share paid quarterly—the dividend yield is higher than both the average for the broader S&P 1500 and the Materials sector which are 1.76% and 1.96%, respectively. In regards to other S&P 1500 steel companies, along with Nucor (NUE), STLD has the joint highest dividend yield. The growth rate of STLD's dividend has also outpaced the sector dramatically. The dividend grew by 24.82% over the past year and 13.7% over the past five years. By both measures, this is nearly twice the growth rate of other stocks in the sector. That growth has been in spite of the past year and a half's trade headwinds. Furthermore, with the dividend payout ratio at 27.36%, the company still has plenty of cushion to pay shareholders in the event that earnings do decline.
We recommended Steel Dynamics, Inc. options when its stock was selling at $25.57. We believed the stock was worth about $78 when we made the recommendation. At this price, the stock was selling at a discount of about 67%. We reasoned that if the stock could only move upward by 30-50% before the expiration period, we would be in position to earn about 75-134%. We closed our positions in Steel Dynamics, Inc. options on the 30th of July, 2019 at the price of $32.86 for a nominal return of 71% and an annualized return of 211% in three months. The stock is currently selling around $30; but we have no doubt that the stock will bounce back before the expiration time. We reasoned that if we have made 71% in three months, we should take our gain and move ahead, especially when there are other opportunities we could invest the money in. Option symbol: STLD210115C00018000 Expiration date: 15th January, 2021 Stock price at recommendation: $25.57 Strike price at recommendation: $18 Options premium at recommendation: $8.7 Expectation 1. We expect the price to rise by 30%-50% to $27.86-$32.15 for a total return of 87.22%-161% before the expiration date. OUTCOME The price of the stock rose by 28.51% to $32.86 in 3 months, amounting to a nominal option return of 71% and an annualized returned of 283% respectively. Date sold: 30th July, 2019 Price when sold: $32.86 Stock return: 29% Option return: 71% Options annualized return: 283%
