Steel Dynamics Inc (NASDAQ: STLD) has seen a rise in its stock price by 1.31 in relation to its previous close of 123.52. However, the company has experienced a 4.45% gain in its stock price over the last five trading sessions. zacks.com reported 2025-01-15 that Steel Dynamics (STLD) doesn’t possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Is It Worth Investing in Steel Dynamics Inc (NASDAQ: STLD) Right Now?
Steel Dynamics Inc (NASDAQ: STLD) has a higher price-to-earnings ratio of 11.33x compared to its average ratio, The 36-month beta value for STLD is at 1.35. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 1 rating it as “overweight,” 10 as “hold,” and 1 as “sell.”
The public float for STLD is 142.66M, and currently, shorts hold a 2.63% of that float. The average trading volume for STLD on January 16, 2025 was 1.48M shares.
STLD’s Market Performance
STLD’s stock has seen a 4.45% increase for the week, with a -1.39% drop in the past month and a -3.87% fall in the past quarter. The volatility ratio for the week is 3.59%, and the volatility levels for the past 30 days are at 2.93% for Steel Dynamics Inc The simple moving average for the last 20 days is 6.51% for STLD stock, with a simple moving average of -2.85% for the last 200 days.
Analysts’ Opinion of STLD
UBS, on the other hand, stated in their research note that they expect to see STLD reach a price target of $149, previously predicting the price at $145. The rating they have provided for STLD stocks is “Neutral” according to the report published on December 12th, 2024.
Goldman gave a rating of “Neutral” to STLD, setting the target price at $155 in the report published on December 02nd of the previous year.
STLD Trading at -4.73% from the 50-Day Moving Average
After a stumble in the market that brought STLD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -19.56% of loss for the given period.
Volatility was left at 2.93%, however, over the last 30 days, the volatility rate increased by 3.59%, as shares surge +2.26% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.11% lower at present.
During the last 5 trading sessions, STLD rose by +4.45%, which changed the moving average for the period of 200-days by -15.58% in comparison to the 20-day moving average, which settled at $117.49. In addition, Steel Dynamics Inc saw 9.70% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at STLD starting from Poinsatte Richard A, who sale 2,000 shares at the price of $138.75 back on Nov 15 ’24. After this action, Poinsatte Richard A now owns 21,101 shares of Steel Dynamics Inc, valued at $277,500 using the latest closing price.
Poinsatte Richard A, the Senior Vice President of Steel Dynamics Inc, proposed sale 2,000 shares at $137.81 during a trade that took place back on Nov 15 ’24, which means that Poinsatte Richard A is holding shares at $275,620 based on the most recent closing price.
Stock Fundamentals for STLD
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.17 for the gross margin
The net margin for Steel Dynamics Inc stands at 0.1. The total capital return value is set at 0.17. Equity return is now at value 19.52, with 11.47 for asset returns.
Based on Steel Dynamics Inc (STLD), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.64. The debt to equity ratio resting at 0.41. The interest coverage ratio of the stock is 39.32.
Currently, EBITDA for the company is 3.73 billion with net debt to EBITDA at 0.98. When we switch over and look at the enterprise to sales, we see a ratio of 1.21. The receivables turnover for the company is 11.44for trailing twelve months and the total asset turnover is 1.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.39.
Conclusion
In conclusion, Steel Dynamics Inc (STLD) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
