Steel Dynamics Sees Unusually Large Options Volume (NASDAQ:STLD)

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Steel Dynamics, Inc. (NASDAQ:STLD) saw unusually large options trading activity on Tuesday. Stock investors acquired 3,168 call options on the company. This is an increase of approximately 220% compared to the average daily volume of 990 call options.

NASDAQ:STLD traded down $0.59 during trading hours on Tuesday, reaching $36.32. The company had a trading volume of 38,399 shares, compared to its average volume of 2,135,218. The company has a quick ratio of 2.20, a current ratio of 3.60 and a debt-to-equity ratio of 0.66. The firm has a market cap of $7.76 billion, a price-to-earnings ratio of 16.26, a P/E/G ratio of 1.18 and a beta of 1.42. The business’s 50-day simple moving average is $31.97 and its two-hundred day simple moving average is $28.63. Steel Dynamics has a twelve month low of $14.98 and a twelve month high of $37.33.

Steel Dynamics (NASDAQ:STLD) last posted its quarterly earnings results on Monday, October 19th. The basic materials company reported $0.51 EPS for the quarter, topping analysts’ consensus estimates of $0.47 by $0.04. Steel Dynamics had a net margin of 5.17% and a return on equity of 13.40%. The business had revenue of $2.33 billion during the quarter, compared to analysts’ expectations of $2.21 billion. During the same period last year, the company posted $0.69 earnings per share. The business’s quarterly revenue was down 7.8% on a year-over-year basis. As a group, equities analysts predict that Steel Dynamics will post 2.34 earnings per share for the current year.

A number of analysts have recently weighed in on STLD shares. BidaskClub raised shares of Steel Dynamics from a “buy” rating to a “strong-buy” rating in a report on Monday, November 2nd. BMO Capital Markets increased their price objective on shares of Steel Dynamics from $32.00 to $35.00 and gave the company a “market perform” rating in a research note on Wednesday, October 21st. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Steel Dynamics from $27.00 to $31.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Cfra raised shares of Steel Dynamics from a “hold” rating to a “buy” rating in a research note on Wednesday, July 22nd. Finally, Credit Suisse Group raised their price target on shares of Steel Dynamics from $30.00 to $32.00 and gave the company a “neutral” rating in a research note on Wednesday, October 21st. Two analysts have rated the stock with a sell rating, two have issued a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $31.33.

Several institutional investors have recently added to or reduced their stakes in the business. Cubist Systematic Strategies LLC lifted its stake in shares of Steel Dynamics by 13.8% in the third quarter. Cubist Systematic Strategies LLC now owns 203,075 shares of the basic materials company’s stock valued at $5,814,000 after buying an additional 24,651 shares in the last quarter. Gyon Technologies Capital Management LP bought a new position in shares of Steel Dynamics during the third quarter valued at about $240,000. Advisors Asset Management Inc. lifted its position in shares of Steel Dynamics by 6.2% during the third quarter. Advisors Asset Management Inc. now owns 29,275 shares of the basic materials company’s stock valued at $838,000 after purchasing an additional 1,710 shares in the last quarter. Morgan Stanley lifted its position in shares of Steel Dynamics by 59.9% during the third quarter. Morgan Stanley now owns 1,001,766 shares of the basic materials company’s stock valued at $28,681,000 after purchasing an additional 375,292 shares in the last quarter. Finally, ProShare Advisors LLC lifted its position in shares of Steel Dynamics by 3.2% during the third quarter. ProShare Advisors LLC now owns 21,667 shares of the basic materials company’s stock valued at $620,000 after purchasing an additional 681 shares in the last quarter. 81.42% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; structural steel beams, pilings, and standard and premium grade rail products; engineered special-bar-quality products; and merchant-bar-quality products, including rounds, angles, flats, reinforcing bars, and channels and specialty steel sections.

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