Nucor Corporation (NYSE:NUE) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Nucor has a “Moderate Buy” consensus rating: 13 of 16 analysts recommend buying the stock, with an average 12-month price target of $272.38 versus its recent price of $260.98.
• Quarterly results exceeded expectations: Nucor reported EPS of $4.84 versus the $4.46 consensus and revenue of $10.40 billion, up 23% year over year.
• The company maintains shareholder returns: Nucor declared a quarterly dividend of $0.56 per share, equal to a 0.9% annualized yield, while institutional investors own 76.48% of the stock.

Shares of Nucor Corporation (NYSE:NUE - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the sixteen ratings firms that are presently covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and thirteen have issued a buy recommendation on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $272.3846.

Several brokerages recently commented on NUE. Bank of America reduced their price target on shares of Nucor from $290.00 to $280.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Zacks Research downgraded shares of Nucor from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. The Goldman Sachs Group increased their target price on Nucor from $260.00 to $284.00 and gave the company a "buy" rating in a report on Tuesday, June 16th. BMO Capital Markets lifted their price target on Nucor from $285.00 to $295.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. upped their price target on Nucor from $240.00 to $282.00 and gave the company an "overweight" rating in a research report on Wednesday, June 10th.

Nucor Stock Down 0.6%

NYSE NUE opened at $260.98 on Friday. The company has a market capitalization of $59.21 billion, a P/E ratio of 20.81, a PEG ratio of 0.97 and a beta of 1.87. Nucor has a 12 month low of $131.32 and a 12 month high of $280.11. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.51 and a quick ratio of 1.36. The company's 50 day simple moving average is $248.16 and its 200 day simple moving average is $221.33.

Nucor (NYSE:NUE - Get Free Report) last issued its earnings results on Monday, July 27th. The basic materials company reported $4.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.46 by $0.38. The business had revenue of $10.40 billion for the quarter, compared to analysts' expectations of $10.15 billion. Nucor had a return on equity of 12.73% and a net margin of 7.99%.The company's quarterly revenue was up 23.0% on a year-over-year basis. During the same period in the previous year, the firm posted $2.60 EPS. Equities research analysts expect that Nucor will post 17.95 earnings per share for the current fiscal year.

Nucor Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Tuesday, June 30th were given a $0.56 dividend. This represents a $2.24 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, June 30th. Nucor's dividend payout ratio is 17.86%.

Insider Activity at Nucor

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

Institutional Trading of Nucor

Hedge funds and other institutional investors have recently modified their holdings of the company. California State Teachers Retirement System increased its position in Nucor by 23,029.6% in the 2nd quarter. California State Teachers Retirement System now owns 61,424,649 shares of the basic materials company's stock worth $13,682,341,000 after purchasing an additional 61,159,082 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Nucor during the 2nd quarter valued at about $4,452,563,000. Norges Bank bought a new stake in shares of Nucor in the 4th quarter valued at approximately $609,002,000. Bank of America Corp DE acquired a new position in Nucor in the second quarter worth approximately $462,886,000. Finally, Berkshire Hathaway Inc bought a new position in Nucor during the second quarter valued at approximately $413,814,000. 76.48% of the stock is currently owned by hedge funds and other institutional investors.

Nucor Company Profile

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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