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Steel Dynamics Board Approves $750M Share Repurchase Program

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Steel Dynamics, Inc. (STLD - Free Report) declared that its board has authorized an additional share repurchase program worth up to $750 million. The authorization is effective immediately and it follows the completion of the company’s $450-million share buyback authorization that was finished in August.

The new authorization demonstrates Steel Dynamics’ confidence in generating strong free cash flow in both strong and weak market environments. Through strategic and profitable organic growth opportunities, the company is committed towards delivering shareholder value. The company also believes that the strength of its capital structure and operating model will allow it to grow prudently, while returning value to shareholders through the share repurchase program.

Shares of Steel Dynamics have gained 38.4% in a year, outperforming the industry’s growth of 4%.



During the second-quarter call, Steel Dynamics reiterated that the market and macroeconomic conditions are positioned to benefit domestic steel consumption and believes that steel consumption will continue to be strong for the remainder of 2018. Moreover, the company intends to boost production during second-half 2018 to roughly 40,000 tons a month.

Steel Dynamics continues to generate strong cash flow and strengthen its financial position. The company also remains committed to deliver shareholder value through strategic and organic opportunities. The company should also benefit from its strategic acquisitions.

Steel Dynamics, Inc. Price and Consensus

 

Steel Dynamics is a Zacks Rank #3 (Hold) stock.

A few better-ranked companies in the basic materials space are Huntsman Corporation (HUN - Free Report) , Ingevity Corporation (NGVT - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 9.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected long-term earnings growth rate of 12% and a Zacks Rank #1. The company’s shares have rallied 62.3% in the past year.

Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2 (Buy). Its stock has gained 14.6% in a year’s time.

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