Nucor (NYSE:NUE) Rating Lowered to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Nucor from “strong buy” to “buy,” though the broader analyst consensus remains “Moderate Buy,” with 13 Buy ratings and four Holds and an average target price of $276.07.
• Nucor’s latest quarterly results exceeded expectations, with earnings per share of $4.84 versus the $4.46 consensus and revenue of $10.40 billion, up 23% year over year.
• The company plans to invest $105 million to expand its Indiana utility-towers facility and add 100 jobs, while insider ownership remains low at 0.62% after recent executive stock sales.

Nucor (NYSE:NUE - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Monday, Wall Street Zen reports.

NUE has been the topic of several other research reports. Barclays boosted their price target on Nucor from $272.00 to $295.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Freedom Broker lowered Nucor from a "buy" rating to a "hold" rating and cut their price objective for the company from $305.00 to $285.00 in a report on Friday, September 18th. UBS Group raised their price objective on Nucor from $224.00 to $256.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 28th. KeyCorp reduced their price objective on Nucor from $288.00 to $286.00 and set an "overweight" rating for the company in a research note on Monday, October 5th. Finally, Citigroup reaffirmed a "buy" rating on shares of Nucor in a report on Wednesday, July 29th. Thirteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $276.07.

Nucor Trading Down 0.0%

NYSE:NUE opened at $250.25 on Monday. The company has a market capitalization of $56.78 billion, a P/E ratio of 19.96, a PEG ratio of 0.89 and a beta of 1.84. The company has a current ratio of 2.51, a quick ratio of 1.36 and a debt-to-equity ratio of 0.27. Nucor has a 12 month low of $131.32 and a 12 month high of $280.11. The firm has a fifty day simple moving average of $255.32 and a 200-day simple moving average of $235.35.

Nucor (NYSE:NUE - Get Free Report) last announced its quarterly earnings data on Monday, July 27th. The basic materials company reported $4.84 earnings per share for the quarter, beating analysts' consensus estimates of $4.46 by $0.38. Nucor had a net margin of 7.99% and a return on equity of 12.73%. The firm had revenue of $10.40 billion for the quarter, compared to analyst estimates of $10.15 billion. During the same period in the previous year, the company earned $2.60 earnings per share. The business's quarterly revenue was up 23.0% compared to the same quarter last year. On average, equities research analysts anticipate that Nucor will post 18.89 earnings per share for the current year.

Insider Activity

In other news, EVP Thomas J. Batterbee sold 4,000 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $261.02, for a total value of $1,044,080.00. Following the completion of the transaction, the executive vice president owned 16,138 shares of the company's stock, valued at $4,212,340.76. The trade was a 19.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Stephen D. Laxton sold 3,968 shares of the business's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $256.96, for a total value of $1,019,617.28. Following the completion of the transaction, the chief operating officer directly owned 77,867 shares of the company's stock, valued at approximately $20,008,704.32. This trade represents a 4.85% decrease in their position. The SEC filing for this sale provides additional information. 0.62% of the stock is currently owned by company insiders.

Institutional Trading of Nucor

Several hedge funds and other institutional investors have recently bought and sold shares of NUE. Mirador Capital Partners LP lifted its holdings in Nucor by 2.9% in the third quarter. Mirador Capital Partners LP now owns 6,307 shares of the basic materials company's stock valued at $1,474,000 after acquiring an additional 175 shares during the period. GK Wealth Management LLC purchased a new stake in Nucor in the 3rd quarter worth approximately $28,000. Decker Wealth Management LLC grew its stake in shares of Nucor by 1.4% during the 3rd quarter. Decker Wealth Management LLC now owns 31,309 shares of the basic materials company's stock worth $7,318,000 after purchasing an additional 447 shares during the period. Wedmont Private Capital grew its stake in shares of Nucor by 7.4% during the 3rd quarter. Wedmont Private Capital now owns 3,428 shares of the basic materials company's stock worth $844,000 after purchasing an additional 236 shares during the period. Finally, Monument Capital Management grew its stake in shares of Nucor by 1.1% during the 3rd quarter. Monument Capital Management now owns 14,837 shares of the basic materials company's stock worth $3,468,000 after purchasing an additional 166 shares during the period. 76.48% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Nucor

Here are the key news stories impacting Nucor this week:

• Positive Sentiment: Indiana expansion strengthens growth outlook: Nucor plans to invest $105 million to expand its Towers & Structures facility in Crawfordsville, Indiana, adding capacity for utility poles and related transmission and distribution products. The project is expected to create 100 jobs, although it remains subject to regulatory and other approvals. Nucor to Expand Utility Towers & Structures Facility in Indiana
• Positive Sentiment: Analysts remain constructive: Goldman Sachs maintained its Buy rating on Nucor, reinforcing the view that the steelmaker can benefit from infrastructure spending and its diversified downstream businesses. Goldman Sachs Sticks to Their Buy Rating for Nucor
• Positive Sentiment: Recent earnings momentum provides support: Nucor’s latest reported quarter exceeded analyst expectations for both earnings and revenue, with revenue rising year over year. That performance may be helping investors view the company’s expansion plans more favorably.
• Neutral Sentiment: Potential data-center and electrification exposure: Commentary highlighting Nucor alongside Eaton points to possible indirect benefits from data-center construction and the broader need for power infrastructure, though this is an investment theme rather than a new company-specific contract. Eaton and Nucor: Jim Cramer Likes Both
• Negative Sentiment: JPMorgan reduced its price target: JPMorgan lowered its target from $308 to $296, signaling somewhat less near-term upside. However, it retained an Overweight rating, and the revised target still implies meaningful appreciation from recent levels.

Nucor Company Profile

Nucor Corporation is a Charlotte, North Carolina-based steel producer and one of the largest steel companies in North America. The company operates electric arc furnace (EAF) steel mills that use recycled scrap steel as a primary raw material, along with facilities that manufacture and process steel products for construction, manufacturing, transportation, energy and other industrial markets.

Nucor's product portfolio includes carbon and alloy steel in sheet, plate, bar and structural forms, as well as reinforcing steel, wire and wire mesh.

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