Argus Forecasts Strong Price Appreciation for Nucor (NYSE:NUE) Stock

Key Points

• Argus raised its price target on Nucor from $200 to $262 and kept a buy rating, implying about 14.6% upside from the current price.
• Nucor has drawn broad analyst optimism, with several firms lifting targets recently; the stock now carries a consensus Moderate Buy and an average price target of $245.45.
• The company reported better-than-expected quarterly results, with EPS of $3.23 versus $2.82 expected and revenue of $9.50 billion, while also authorizing a $4 billion share buyback.

Nucor (NYSE:NUE - Get Free Report) had its target price hoisted by analysts at Argus from $200.00 to $262.00 in a note issued to investors on Friday,MarketScreener reports. The firm presently has a "buy" rating on the basic materials company's stock. Argus' target price would indicate a potential upside of 14.61% from the company's current price.

Other equities analysts have also issued research reports about the company. Bank of America upped their price target on Nucor from $190.00 to $250.00 and gave the company a "buy" rating in a research note on Tuesday, April 28th. JPMorgan Chase & Co. boosted their price objective on shares of Nucor from $212.00 to $240.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. KeyCorp began coverage on shares of Nucor in a research report on Wednesday, March 25th. They issued a "sector weight" rating on the stock. BMO Capital Markets increased their target price on shares of Nucor from $196.00 to $235.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 28th. Finally, The Goldman Sachs Group upped their price target on Nucor from $240.00 to $260.00 in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Nucor has a consensus rating of "Moderate Buy" and a consensus price target of $245.45.

Nucor Trading Down 1.8%

Shares of Nucor stock traded down $4.24 during mid-day trading on Friday, hitting $228.61. The stock had a trading volume of 171,615 shares, compared to its average volume of 1,635,071. The firm has a 50-day moving average of $189.46 and a two-hundred day moving average of $174.54. The firm has a market cap of $52.04 billion, a P/E ratio of 22.63, a price-to-earnings-growth ratio of 0.62 and a beta of 1.87. The company has a quick ratio of 1.55, a current ratio of 2.90 and a debt-to-equity ratio of 0.30. Nucor has a 12-month low of $106.21 and a 12-month high of $235.45.

Nucor (NYSE:NUE - Get Free Report) last released its quarterly earnings data on Monday, April 27th. The basic materials company reported $3.23 EPS for the quarter, beating analysts' consensus estimates of $2.82 by $0.41. The firm had revenue of $9.50 billion for the quarter, compared to analysts' expectations of $8.88 billion. Nucor had a return on equity of 10.68% and a net margin of 6.82%.The firm's quarterly revenue was up 21.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.77 earnings per share. Sell-side analysts forecast that Nucor will post 14.66 earnings per share for the current year.

Nucor declared that its board has approved a stock buyback program on Friday, February 20th that allows the company to repurchase $4.00 billion in shares. This repurchase authorization allows the basic materials company to reacquire up to 9.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Nucor

In other news, EVP Bradley Ford sold 2,240 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $232.13, for a total value of $519,971.20. Following the sale, the executive vice president directly owned 43,649 shares in the company, valued at approximately $10,132,242.37. This trade represents a 4.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Allen C. Behr sold 10,096 shares of Nucor stock in a transaction on Monday, May 4th. The shares were sold at an average price of $226.08, for a total value of $2,282,503.68. Following the completion of the transaction, the executive vice president owned 62,871 shares of the company's stock, valued at approximately $14,213,875.68. This trade represents a 13.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 69,318 shares of company stock valued at $15,672,093. Insiders own 0.62% of the company's stock.

Institutional Trading of Nucor

Several hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Nucor in the 4th quarter valued at approximately $609,002,000. AQR Capital Management LLC grew its stake in shares of Nucor by 580.9% during the second quarter. AQR Capital Management LLC now owns 653,845 shares of the basic materials company's stock worth $84,699,000 after purchasing an additional 557,819 shares in the last quarter. Capital World Investors grew its stake in shares of Nucor by 20.1% during the third quarter. Capital World Investors now owns 3,042,761 shares of the basic materials company's stock worth $412,081,000 after purchasing an additional 509,019 shares in the last quarter. Vaughan Nelson Investment Management L.P. increased its holdings in Nucor by 169.0% in the fourth quarter. Vaughan Nelson Investment Management L.P. now owns 779,940 shares of the basic materials company's stock valued at $127,216,000 after buying an additional 489,950 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in Nucor by 27.5% in the fourth quarter. Bank of New York Mellon Corp now owns 1,780,423 shares of the basic materials company's stock valued at $290,405,000 after buying an additional 383,952 shares during the last quarter. Institutional investors and hedge funds own 76.48% of the company's stock.

About Nucor

Nucor Corporation NYSE: NUE is an American steel producer headquartered in Charlotte, North Carolina. The company is primarily engaged in the manufacture and sale of steel and steel products, operating a network of steel mills, recycling facilities and fabrication plants across the United States and North America. Nucor's operations emphasize electric arc furnace steelmaking using recycled scrap metal, which supports a decentralized, mill-based production model focused on efficiency and flexibility.

Product offerings span a broad range of basic and value‑added steel items, including sheet, plate, merchant bar, structural beams, reinforcing bar, tubing, fasteners and fabricated components.

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