What Analysts Are Saying About Steel Dynamics Stock

Steel Dynamics (NASDAQ:STLD) has been analyzed by 9 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $145.0, a high estimate of $158.00, and a low estimate of $135.00. This upward trend is evident, with the current average reflecting a 5.4% increase from the previous average price target of $137.57.

Investigating Analyst Ratings: An Elaborate Study

The perception of Steel Dynamics by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Carlos De Alba |Morgan Stanley |Lowers |Overweight | $140.00|$145.00 | |Bill Peterson |JP Morgan |Raises |Neutral | $138.00|$135.00 | |Bill Peterson |JP Morgan |Lowers |Neutral | $135.00|$140.00 | |Katja Jancic |BMO Capital |Raises |Outperform | $145.00|$135.00 | |Andrew Jones |UBS |Announces |Buy | $149.00|- | |Bill Peterson |JP Morgan |Raises |Neutral | $140.00|$132.00 | |Carlos De Alba |Morgan Stanley |Raises |Overweight | $158.00|$145.00 | |Philip Gibbs |Keybanc |Announces |Overweight | $155.00|- | |Carlos De Alba |Morgan Stanley |Raises |Equal-Weight | $145.00|$131.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Steel Dynamics. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Steel Dynamics compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Steel Dynamics's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Steel Dynamics's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Steel Dynamics analyst ratings.

Get to Know Steel Dynamics Better

Steel Dynamics Inc operates as a domestic steel producer and metal recycler in the United States. The company's product portfolio comprises hot rolled sheet, hot rolled plate, painted sheet products, cold rolled sheet, and others. Its reportable segments are steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Maximum revenue is generated from its steel operations segment, which consists of manufacturing various steel products and numerous coating operations. Its primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.

Steel Dynamics's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Negative Revenue Trend: Examining Steel Dynamics's financials over 3M reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -8.53% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Steel Dynamics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.35% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Steel Dynamics's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.3%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Steel Dynamics's ROA excels beyond industry benchmarks, reaching 1.36%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.36, Steel Dynamics adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.