Wells Fargo Reiterates Buy Rating on Steel Dynamics with $143 Price Target

Steel Dynamics (STLD) received a Buy rating from Wells Fargo's Timna Tanners, with a $143.00 price target. The company has a Strong Buy analyst consensus and a price target consensus of $148.33, a 17.33% upside from current levels. Corporate insider sentiment is negative, with an increase in insiders selling their shares over the past quarter.

Steel Dynamics (STLD), a leading steel producer and recycler, has received a positive analyst rating from Wells Fargo, which initiated coverage on the company with an Overweight rating and a price target of $143.00 [1]. The investment bank cited the end of a multi-year investment cycle worth approximately $5 billion as a key factor in its bullish outlook. Wells Fargo expressed optimism about the returns on these investments, which have yet to fully materialize. The recent capital expenditures focused on new plants, including aluminum rolling facilities, downstream steel coating operations, and new steel output capacity. The firm noted that these new investments have not yet generated EBITDA, providing "organic growth optionality" for Steel Dynamics.

Despite the positive analyst outlook, Steel Dynamics faced a challenging quarter in the second quarter of 2025. The company reported an earnings per share (EPS) of $2.01, falling short of the forecasted $2.26. Revenue was also below projections, coming in at $4.6 billion compared to the anticipated $4.73 billion. These figures highlight a challenging quarter for Steel Dynamics, as the company faced difficulties in meeting market forecasts. However, there have been no recent upgrades or downgrades from analyst firms reported in connection with these earnings results. Investors will be watching closely for any further announcements or strategic moves from Steel Dynamics in response to these figures.

Corporate insider sentiment at Steel Dynamics has been negative, with an increase in insiders selling their shares over the past quarter. SVP Miguel Alvarez sold 7,495 shares at $135.26, while institutional investors like Price T Rowe Associates raised their position by 25.5% [2]. Despite reporting earnings of $2.01 per share, which was below the consensus estimate, Steel Dynamics experienced a 2.9% increase in its share price following earnings reports.

Steel Dynamics has been assigned an average rating of "Moderate Buy" from the twelve ratings firms that are presently covering the company. Three analysts have rated the stock with a hold recommendation, eight have given a buy recommendation, and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $148.70 [2]. JPMorgan Chase & Co. boosted their price objective on Steel Dynamics from $138.00 to $150.00 and gave the stock a "neutral" rating. Morgan Stanley upped their price target on Steel Dynamics from $140.00 to $145.00 and gave the company an "overweight" rating. Wall Street Zen cut Steel Dynamics from a "hold" rating to a "sell" rating. Wells Fargo & Company raised Steel Dynamics to a "strong-buy" rating [2].

In summary, Steel Dynamics has received a positive analyst rating from Wells Fargo, with a price target of $143.00. The company faces mixed insider sentiment, with an increase in insider selling. Despite a challenging quarter, the company's investment cycle and potential organic growth optionality have analysts optimistic about the stock's future.

References:
[1] https://ca.investing.com/news/analyst-ratings/steel-dynamics-stock-initiated-at-overweight-by-wells-fargo-on-investment-cycle-end-93CH-4158443
[2] https://www.marketbeat.com/instant-alerts/steel-dynamics-inc-nasdaqstld-receives-consensus-recommendation-of-moderate-buy-from-brokerages-2025-08-14/