JPMorgan Raises Steel Dynamics Price Target to $190 Amid Strong Earnings

Steel Dynamics, Inc. (NASDAQ:STLD) received a significant boost from JPMorgan Chase & Co., which raised its price target for the company’s stock from $165.00 to $190.00. This adjustment, announced in a note to investors on October 20, 2023, reflects a potential upside of approximately 14.24% based on the stock’s current trading price. The firm maintains a “neutral” rating on Steel Dynamics, a leading player in the basic materials sector.

Other financial institutions have also revised their expectations for Steel Dynamics. Jefferies Financial Group increased its price target from $165.00 to $180.00 and assigned a “buy” rating in a report dated October 22, 2023. Meanwhile, Goldman Sachs Group set a target price of $172.00 with a neutral rating on October 31, 2023. UBS Group, on November 4, 2023, established a target of $165.00, while BMO Capital Markets raised its price target from $155.00 to $167.00 and recommended an “outperform” rating.

Analysts’ Consensus and Recent Performance

According to MarketBeat, Steel Dynamics currently holds a consensus rating of “Moderate Buy” with an average target price of $173.78. The company’s stock has received seven buy ratings and five hold ratings from various analysts, indicating a generally optimistic outlook.

Steel Dynamics showcased strong financial performance in its latest earnings report, released on October 21, 2023. The company reported earnings of $2.74 per share, surpassing the consensus estimate of $2.63 by $0.11. Revenue for the quarter reached $4.83 billion, exceeding expectations of $4.74 billion. This performance represents an 11.2% increase in revenue compared to the same quarter last year, where the company posted earnings of $2.05 per share.

Insider Activity and Institutional Investments

In addition to these financial movements, insider trading activity has been notable. On October 29, 2023, Senior Vice President Miguel Alvarez sold 8,251 shares at an average price of $162.79, totaling approximately $1.34 million. Following this transaction, Alvarez holds 117,068 shares, valued at about $19.06 million. This sale indicates a 6.58% reduction in Alvarez’s stake in the company.

Institutional investors have shown increased interest in Steel Dynamics. For instance, PNC Financial Services Group raised its stake by 10.9% during the first quarter, now holding 23,676 shares worth approximately $2.96 million. Additionally, Cary Street Partners Investment Advisory LLC expanded its holdings by 493.9%, acquiring 196 shares valued at $25,000.

As of now, institutional investors and hedge funds own 82.41% of Steel Dynamics, reflecting a strong backing from major financial players.

Steel Dynamics operates primarily as a steel producer and metal recycler in the United States, offering a wide range of steel products. Its performance in the market and the recent adjustments from major financial institutions suggest a robust outlook for the company in the upcoming quarters.

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