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Steel Dynamics (STLD) to Buyback Additional Shares Worth $1B

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Steel Dynamics, Inc. (STLD - Free Report) announced that its board has authorized an additional share buyback program of up to $1 billion of the company’s common stock, effective immediately.

It is in addition to the earlier $500-million program, which had $51 million remaining authorized and available for repurchase as of Jun 30, 2021. Since 2016, the company has repurchased $1.6 million worth common stock, marking 19% of its outstanding shares. It also paid cash dividends of more than $950 million through Jun 30, 2021.

These actions reflect on the board’s and management’s ability to consistently generate industry-leading strong free cash flow throughout all market environments.

Shares of Steel Dynamics have gained 133.8% in the past year compared with 142.9% rise of the industry.

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Last month, the company announced second-quarter earnings guidance in the range of $3.26-$3.30 per share. It expects second-quarter adjusted earnings in the range of $3.34-$3.38 per share, which will set record quarterly earnings for the company.

Steel Dynamics expects sequentially higher profit in its steel operations in the second quarter driven by strong underlying steel demand and significant metal spread expansion across the entire platform, especially within the flat roll steel operations. Domestic steel demand also remains strong, which along with historically low flat roll steel inventories underpin higher steel selling prices.

 

Zacks Rank & Other Key Picks

Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .

Nucor has a projected earnings growth rate of around 386.2% for the current year. The company’s shares have surged 133.3% in a year. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 299.4% in the past year. It currently carries a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 55.7% in the past year. It currently flaunts a Zacks Rank #2.

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