Steel Dynamics (NASDAQ:STLD) Shares Gap Down Following Weak Earnings
by Scott Moore · The Cerbat GemSteel Dynamics, Inc. (NASDAQ:STLD – Get Free Report)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $245.17, but opened at $232.65. Steel Dynamics shares last traded at $241.6310, with a volume of 310,557 shares traded.
The basic materials company reported $5.26 earnings per share for the quarter, missing the consensus estimate of $5.48 by ($0.22). Steel Dynamics had a return on equity of 18.12% and a net margin of 7.83%. The firm had revenue of $6.51 billion for the quarter, compared to analyst estimates of $6.43 billion. During the same quarter in the prior year, the firm earned $2.74 earnings per share. The firm’s revenue for the quarter was up 34.8% on a year-over-year basis.
Steel Dynamics Announces Dividend
The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th were paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Wednesday, September 30th. Steel Dynamics’s dividend payout ratio is presently 19.22%.
Key Headlines Impacting Steel Dynamics
Here are the key news stories impacting Steel Dynamics this week:
- Positive Sentiment: Steel Dynamics reported record third-quarter steel shipments of 3.8 million tons, $6.5 billion in sales, $756 million in net income and $1.2 billion in adjusted EBITDA. Profit rose substantially from $403.7 million a year earlier, supported by better realized steel prices, lower scrap costs and wider metal spreads. The company also repurchased $276 million of stock and ended the quarter with $2.4 billion in liquidity. Steel Dynamics Reports Third Quarter 2026 Results
- Positive Sentiment: Improved steel pricing and lower imports helped drive the year-over-year profit increase, reinforcing the view that favorable North American steel-market conditions are benefiting STLD. Industry strength, including positive results from Cleveland-Cliffs, also provided a supportive backdrop for steel stocks. Steel Dynamics Reports Higher Profit on Improved Pricing, Lower Imports
- Neutral Sentiment: Management announced leadership promotions intended to support long-term growth and operational excellence. The changes signal continuity and strategic focus but do not immediately alter the company’s earnings outlook. Steel Dynamics Announces Leadership Promotions
- Negative Sentiment: Adjusted earnings of $5.26 per share fell short of analyst expectations and the company’s prior guidance range. Metals-recycling operating income declined sequentially, while aluminum shipments were below internal expectations because of production yield and quality issues. With strong results seemingly reflected in the valuation, the miss may limit further upside despite solid revenue growth. Steel Dynamics Q3 Earnings Miss Estimates
Analysts Set New Price Targets
Several equities research analysts recently issued reports on the stock. Morgan Stanley decreased their price target on shares of Steel Dynamics from $270.00 to $260.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 22nd. The Goldman Sachs Group reissued a “buy” rating and issued a $299.00 price objective on shares of Steel Dynamics in a research note on Tuesday. Weiss Ratings lowered shares of Steel Dynamics from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, October 13th. Bank of America decreased their target price on shares of Steel Dynamics from $280.00 to $260.00 and set a “neutral” rating on the stock in a research note on Thursday, July 9th. Finally, Wells Fargo & Company upped their price target on shares of Steel Dynamics from $255.00 to $257.00 and gave the stock an “overweight” rating in a report on Friday, September 18th. Eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $258.55.
Get Our Latest Report on Steel Dynamics
Institutional Inflows and Outflows
Institutional investors have recently added to or reduced their stakes in the company. Secure Asset Management LLC lifted its position in Steel Dynamics by 2.0% in the 3rd quarter. Secure Asset Management LLC now owns 3,695 shares of the basic materials company’s stock valued at $819,000 after acquiring an additional 71 shares in the last quarter. V Square Quantitative Management LLC raised its stake in shares of Steel Dynamics by 11.4% in the third quarter. V Square Quantitative Management LLC now owns 4,661 shares of the basic materials company’s stock worth $1,033,000 after purchasing an additional 478 shares during the last quarter. Wealth Enhancement Trust Services Inc. raised its stake in shares of Steel Dynamics by 1,200.0% in the third quarter. Wealth Enhancement Trust Services Inc. now owns 117 shares of the basic materials company’s stock worth $26,000 after purchasing an additional 108 shares during the last quarter. QRG Capital Management Inc. raised its stake in shares of Steel Dynamics by 24.5% in the second quarter. QRG Capital Management Inc. now owns 8,421 shares of the basic materials company’s stock worth $1,932,000 after purchasing an additional 1,659 shares during the last quarter. Finally, Envestnet Asset Management Inc. lifted its holdings in shares of Steel Dynamics by 0.8% in the second quarter. Envestnet Asset Management Inc. now owns 267,193 shares of the basic materials company’s stock valued at $61,310,000 after purchasing an additional 2,095 shares in the last quarter. 82.41% of the stock is owned by institutional investors and hedge funds.
Steel Dynamics Stock Down 1.3%
The company has a market cap of $34.67 billion, a P/E ratio of 21.94, a price-to-earnings-growth ratio of 0.34 and a beta of 1.48. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.18 and a quick ratio of 1.45. The stock has a fifty day moving average price of $238.51 and a two-hundred day moving average price of $237.10.
About Steel Dynamics
Steel Dynamics, Inc is a steel producer and metals recycler headquartered in Fort Wayne, Indiana. The company manufactures steel products using electric arc furnace technology and serves customers across industries such as construction, automotive, manufacturing, and energy.
Its operations include the production of flat rolled steel, long steel products, structural steel, rail, and specialty products. Steel Dynamics also provides steel processing and fabrication services, including the manufacture of steel joists, deck systems, and other components used in commercial and industrial construction.
The company operates metals recycling facilities that collect, process, and supply ferrous and nonferrous scrap to support its steelmaking operations.