Taking a Fresh Look at Steel Dynamics, Inc. (STLD)

Steel Dynamics, Inc. (STLD) is an interesting player in the Basic Materials space, with a focus on Steel & Iron. The stock has been active on the tape, currently trading at $49.45, up from yesterday’s close by 1.83%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Steel Dynamics, Inc. (STLD) currently trades with a market capitalization of $11.36 Billion. That value represents a market adjusting for revenues that have been growing by 9.95 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $503.22 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.33 on a per share basis this quarter. Perhaps, that suggests something about why 5.91% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Steel Dynamics, Inc. recorded a 52-week high of $50.70. It is now trading 1.25% off that level. The stock is trading $45.63 its 50-day moving average by -3.82%. The stock carved out a 52-week low down at $32.20.

In recent action, Steel Dynamics, Inc. (STLD) has made a move of +6.71% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.83, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.72% with $226.01 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of STLD.

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