FORT WAYNE, Ind.—Glenn Pushis, Senior Vice President of Steel Dynamics Inc. (NASDAQ:STLD), recently sold a substantial portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Pushis sold a total of 17,941 shares of common stock on October 21, 2024. The transactions occurred at prices ranging from $132.95 to $133.21 per share, amounting to a total value of $2,387,825.
Following these sales, Pushis retains ownership of 146,693 shares of Steel Dynamics. The filing also notes that since his last ownership report, Pushis transferred 7,750 shares to his ex-spouse as part of a domestic relations order.
In other recent news, Steel Dynamics reported a net income of $318 million and revenues of $4.3 billion for the third quarter. The company's earnings per share of $2.05 surpassed the consensus estimate of $1.97, prompting BMO Capital to raise its price target for Steel Dynamics from $130 to $135. The company's investments in higher value-added products and strong financial position were cited as contributing factors to this revised target.
Analysts from Seaport Global Securities and Citi also maintained a Buy rating for Steel Dynamics, with Seaport Global increasing the price target to $150 and Citi maintaining a target of $160. Both firms remained positive about the company's financial health, despite a potential decrease in steel metal spreads and a seasonal dip in volumes for the fourth quarter.
In terms of recent developments, Steel Dynamics has invested heavily in its aluminum segment, with plans to operate a new aluminum rolling mill at 75% capacity in 2026. The company has already invested $1.9 billion in this area, with an additional $350-400 million projected for Q4 2024. This investment is expected to bolster the company's growth prospects, despite a challenging market environment.
InvestingPro Insights
While Glenn Pushis has reduced his stake in Steel Dynamics Inc. (NASDAQ:STLD), the company's financial metrics and market performance paint an intriguing picture for investors. According to InvestingPro data, Steel Dynamics boasts a market capitalization of $20.51 billion and a price-to-earnings ratio of 11.96, suggesting a potentially attractive valuation in the current market.
The company's financial health appears robust, with an InvestingPro Tip highlighting that "cash flows can sufficiently cover interest payments." This indicates strong liquidity and financial stability, which may reassure investors despite the insider sale.
Steel Dynamics has also demonstrated a commitment to shareholder returns. An InvestingPro Tip notes that the company "has raised its dividend for 11 consecutive years," reflecting a consistent focus on rewarding investors. The current dividend yield stands at 1.35%, with a dividend growth rate of 8.24% over the last twelve months.
The stock's recent performance has been noteworthy, with a 14.39% price total return over the past month and a 39.97% return over the last year. This strong momentum is further underscored by the fact that the stock is trading at 87.74% of its 52-week high.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Steel Dynamics, providing a deeper understanding of the company's prospects and potential risks.
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