5 Best Steel Stocks To Buy Today

3. Steel Dynamics, Inc. (NASDAQ:STLD)

Number of Hedge Fund Holders: 28

Steel Dynamics, Inc. (NASDAQ:STLD) is headquartered in Fort Wayne, Indiana, and the company is a steel producer and metal recycler in the United States. It operates through three segments – Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. On November 11, Steel Dynamics, Inc. (NASDAQ:STLD) declared a $0.34 per share quarterly dividend, in line with previous. The dividend is distributable on January 13, 2023 to shareholders of record on December 31.

On November 14, BMO Capital analyst David Gagliano raised the price target on Steel Dynamics, Inc. (NASDAQ:STLD) to $100 from $89 and kept a Market Perform rating on the shares. The analyst cited the company’s $1.5 billion buyback, stating that while the decision comes amid declining estimates and increasing capex, Steel Dynamics, Inc. (NASDAQ:STLD) has sufficient cash. The analyst added that the company should remain free cash flow generative in the coming years. The buyback is an optimistic signal that the balanced capital return strategy will continue, the analyst noted.

Among the hedge funds tracked by Insider Monkey, 28 funds were long Steel Dynamics, Inc. (NASDAQ:STLD) at the end of Q3 2022, compared to 29 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 1.5 million shares worth approximately $110 million.