Is Steel Dynamics (NASDAQ:STLD) Now a ‘Buy’? Why did Nomura Upgrade The Stock?


Steel Dynamics (NASDAQ:STLD) Stock Upgrade

The previous rating of a Neutral for Steel Dynamics (NASDAQ:STLD) has been discontinued as Nomura hiked STLD’s current rating to a respectable Buy.

From a total of 17 analysts covering Steel Dynamics Inc. (NASDAQ:STLD) stock, 14 rate it a ”Buy”, 0 a “Sell”, and 2 a ”Hold”. This means that 88% of the ratings are positive. The highest target price is $28 while the lowest target price is $19. The mean of all analyst targets is $23.74 with a 39.50% above today’s ($17.52) stock price. Steel Dynamics Inc. was the topic of 12 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. BB&T Capital initiated shares on November 24 with “Buy” rating. Jefferies maintained shares with “Buy” rating and $25 target share price in a report from a September 17. Cowen & Co maintained STLD stock in a recent report from October 21 with “Outperform” rating. Deutsche Bank maintained the rating on August 13. Deutsche Bank has a “Buy” rating and a $26.50 price target on shares. Finally, Barclays Capital maintained the stock with “Overweight” rating in a report issued on an October 5.

Approximately 1.21 million shares of stock traded hands. Steel Dynamics, Inc. (NASDAQ:STLD) has declined 21.52% since May 11, 2015 and is downtrending. It has underperformed by 17.11% the S&P500.

The overall sentiment of institutions has increased to 1.15 in Q2 2015. Its up 0.10, from 1.05 in 2015Q2. The ratio is positive, as 38 institutions have sold all the shares of Steel Dynamics, Inc. that they owned while 89 funds have taken shares off the table. 31 funds have purchased shares for the first time while 115 added to their positions. These institutions now hold 177.98 million shares or 5.79% less than the 188.92 million shares they owned in 2015Q2.

The Fund New Century Advisors Llc currently is holding shares equating to 3.34% of its total portfolio in Steel Dynamics, Inc. representing a total of 198,500 shares. Another fund,Geosphere Capital Management, is holding a total of 65,000 shares equating to 3.05% of their holdings. Additionally, 3G Capital Partners Lp has a 2.00 million share stake in Steel Dynamics, Inc. which represents 2.54% of their total portfolio. The Fund, Palouse Capital Management Inc., based out of Washington, has also built up a stake in the stock, which represents a total of 2.1% of their total portfolio. Finally Luminus Management Llc, a fund which is based in the state of New York reported a total holdings of 3.64 million shares.

Insider activity is a very important aspect to track on any stock. Going back to March 25, 2015, shareholders of Steel Dynamics, Inc. have witnessed 0 insider purchases, and a total of 4 insider sales equating to a net activity of approximately $6.69 million . Bates John C sold 74,379 shares worth approximately $1.56 million. Busse Keith E sold 8,803 shares worth approximately $144,017.

Steel Dynamics, Inc. is a steel producing and a metal recycling company. The company has a market cap of $4.19 billion. The Firm operates in three divisions: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. It has 55.11 P/E ratio. The Firm offers hot roll, cold roll, galvanized, galvanneal, Galvalume, Galfan, and painted sheet steel; a range of structural steel beams and rails; engineered steel of various sizes and chemistries; and various merchant-bar products, rounds, angles, flats and channels.

According to Zacks Investment Research, “Steel Dynamics, Inc. owns and operates a flat-rolled steel mini-mill. Steel Dynamics operates in the production and sale of hot-rolled and cold-rolled steel coils. The company’s customers consist of intermediate steel processors, steel service centers and end users including manufacturers of cold-rolled strip, oil and gas transmission pipe, and mechanical and structural tubing.”