Jefferies Releases a Buy Rating on Steel Dynamics

By Austin Angelo

In a report released yesterday, Seth Rosenfeld from Jefferies reiterated a Buy rating on Steel Dynamics (NASDAQ: STLD), with a price target of $45. The company’s shares closed yesterday at $35.65.

According to, Rosenfeld is a 5-star analyst with an average return of 16.8% and a 68.5% success rate. Rosenfeld covers the Basic Materials sector, focusing on stocks such as Commercial Metals Company, Worthington Industries, and Peabody Energy Corp.

Steel Dynamics has an analyst consensus of Strong Buy, with a price target consensus of $43.25.

Based on Steel Dynamics’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $1.91 billion and quarterly net profit of $20.01 million. In comparison, last year the company earned revenue of $1.59 billion and had a GAAP net loss of $253 million.

Based on the recent corporate insider activity of 88 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STLD in relation to earlier this year. Most recently, in November 2016, Keith Busse, a Director at STLD sold 2,000 shares for a total of $54,660.

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Steel Dynamics, Inc. is a diversified carbon-steel steel producer and metals recycler in the U.S. It produces a wide array of steel – beams, bars, steel sheet, and more. It operates through the following segments: Steel Operations, Metals Recycling Operations, Steel Fabrication Operations, and Others. The Steel Operations segment consist of its electric arc furnace mini-mills, producing steel from steel scrap, utilizing continuous casting, automated rolling mills, and various downstream finishing facilities. The Metals Recycling Operations segment primarily includes its metals recycling operations, liquid pig iron production facility, and Minnesota iron operations. The Steel Fabrication Operations segment includes New Millennium Building Systems plants, which fabricate steel joists, trusses, girders, and decking used within the non-residential construction industry. The company was founded by Keith E. Busse, Mark D. Millett, Richard P. Teets and John C. Bates in August 1993 and is headquartered in Fort Wayne, IN.