Analysts Are Recommending These 5 Commodity Stocks

In this article, we discuss 5 commodity stocks that analysts are recommending. If you want to see our analysis of the commodities market and some more stocks in this selection, click Analysts Are Recommending These 10 Commodity Stocks. 

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

Number of Hedge Fund Holders: 29

Steel Dynamics, Inc. (NASDAQ:STLD) was incorporated in 1993 and is headquartered in Fort Wayne, Indiana. The company is involved in steel production, metals recycling, and steel fabrication. On January 24, the company posted earnings per share of $5.78 and a $5.31 billion revenue for the fourth quarter of 2021, both above Street estimates. 

On March 16, Steel Dynamics, Inc. (NASDAQ:STLD) announced Q1 adjusted earnings guidance of $5.85 to $5.89 per share, above the Q1 $5.05 market consensus estimate. Steel Dynamics, Inc. (NASDAQ:STLD) on February 28 declared a $0.34 per share quarterly dividend, a 30.8% increase from its prior dividend of $0.26. The dividend will be paid on April 15, to shareholders of record on March 31. 

Steel Dynamics, Inc. (NASDAQ:STLD)’s board of directors also authorized an additional share repurchase program of $1.25 billion on February 28. The authorization came into effect immediately and is an addition to the prior $1.0 billion program announced on July 6, 2021, with $92 million still available for repurchase on February 25, 2022.

Goldman Sachs analyst Emily Chieng on February 15 reiterated a Buy rating on Steel Dynamics, Inc. (NASDAQ:STLD), and raised the price target on the shares to $80 from $75 as part of a broader research note on Metals & Mining. The analyst told investors that her updated model for the sector is based on commodity price assumptions, while also making allowances for shipments and relevant costs.

Among the hedge funds tracked by Insider Monkey, 29 funds were bullish on Steel Dynamics, Inc. (NASDAQ:STLD) at the end of the fourth quarter of 2021, up from 23 funds in the prior quarter. D E Shaw is the largest shareholder of the company, with 1.2 million shares worth $75.5 million.