Analyst Chris LaFemina of Jefferies reiterated a Buy rating on Steel Dynamics (STLD – Research Report), retaining the price target of $145.00.
Chris LaFemina has given his Buy rating due to a combination of factors including Steel Dynamics’ strong earnings guidance and strategic growth investments. The company’s projected earnings per share for the first quarter are set to stabilize, marking a halt in the sequential decline observed in previous quarters. This stabilization is supported by increased shipments in the Steel operations, which are expected to offset any temporary margin compression. Additionally, the Metals Recycling segment is anticipated to see higher earnings due to improved pricing and stable volumes.
Moreover, Steel Dynamics is actively progressing its growth initiatives, with significant developments in its Sinton operations and aluminum segment. The company has also demonstrated a commitment to returning capital to shareholders, evidenced by a recent share repurchase and an increase in its quarterly dividend. Despite broader market concerns, LaFemina views Steel Dynamics as a top pick due to its attractive valuation and capital return potential, suggesting limited downside risk if economic conditions remain stable.
In another report released on March 18, KeyBanc also maintained a Buy rating on the stock with a $155.00 price target.
Based on the recent corporate insider activity of 120 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STLD in relation to earlier this year.