In a report released yesterday, Alexander Hacking from Citi maintained a Buy rating on Steel Dynamics, with a price target of $150.00.
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Alexander Hacking has given his Buy rating due to a combination of factors including Steel Dynamics’ strong performance and promising future outlook. The company reported second-quarter earnings per share that aligned with guidance, indicating robust demand trends despite some market hesitancy due to trade policy uncertainties. The steel mills segment experienced margin expansion driven by demand from sectors such as energy, automotive, and industrial, while the fabrication segment is expected to improve with a significant increase in order backlog.
Moreover, Steel Dynamics’ aluminum mill has begun operations, although the ramp-up is progressing at a slightly slower pace than initially anticipated. Despite this, the projected output rates remain above conservative estimates. Additionally, the company’s flat rolled shipments and improved metal spread highlight its operational efficiency. These factors collectively contribute to an expected share price return of 11.5%, supporting the Buy rating.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $155.00 price target.
Based on the recent corporate insider activity of 117 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.