BlackRock Inc. Invests $4.45 Billion in Nucor Corporation $NUE

Key Points

• BlackRock acquired 19.99 million Nucor shares worth approximately $4.45 billion, giving it an 8.78% stake. Institutional investors collectively own 76.48% of the company.
• Nucor’s latest quarterly results exceeded expectations, with earnings of $4.84 per share versus the $4.46 consensus and revenue of $10.40 billion, up 23% year over year.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $273.31, while Nucor pays a quarterly dividend of $0.56, equivalent to a 0.8% annual yield.

BlackRock Inc. purchased a new stake in Nucor Corporation (NYSE:NUE - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 19,989,061 shares of the basic materials company's stock, valued at approximately $4,452,563,000. BlackRock Inc. owned approximately 8.78% of Nucor as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of NUE. Stance Capital LLC bought a new position in Nucor in the 3rd quarter valued at $25,000. Strive Financial Group LLC bought a new stake in shares of Nucor during the fourth quarter worth $27,000. Bell Investment Advisors Inc acquired a new stake in shares of Nucor in the second quarter valued at $28,000. Motiv8 Investments LLC acquired a new stake in shares of Nucor in the fourth quarter valued at $32,000. Finally, Bartlett & CO. Wealth Management LLC increased its position in Nucor by 49.2% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 191 shares of the basic materials company's stock valued at $32,000 after acquiring an additional 63 shares in the last quarter. Institutional investors own 76.48% of the company's stock.

Insider Activity

In other news, COO Stephen D. Laxton sold 3,968 shares of the firm's stock in a transaction dated 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 completion of the sale, the chief operating officer owned 77,867 shares in the company, valued at approximately $20,008,704.32. This trade represents a 4.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP John J. Hollatz sold 10,560 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $258.46, for a total transaction of $2,729,337.60. Following the sale, the executive vice president owned 97,865 shares of the company's stock, valued at approximately $25,294,187.90. This represents a 9.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 18,528 shares of company stock valued at $4,793,035 over the last ninety days. 0.62% of the stock is currently owned by company insiders.

Nucor Stock Down 2.9%

Shares of NUE stock opened at $264.74 on Wednesday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.36 and a current ratio of 2.51. The firm's 50-day moving average is $247.76 and its 200-day moving average is $215.68. The stock has a market cap of $60.06 billion, a price-to-earnings ratio of 21.11, a PEG ratio of 0.60 and a beta of 1.89. Nucor Corporation has a 52-week low of $131.32 and a 52-week high of $280.11.

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

Nucor Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Tuesday, June 30th were given a $0.56 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.24 annualized dividend and a dividend yield of 0.8%. Nucor's dividend payout ratio is presently 17.86%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on NUE. CICC Research started coverage on shares of Nucor in a research report on Monday, May 25th. They set an "outperform" rating for the company. Seaport Research Partners upped their price objective on Nucor from $245.00 to $285.00 and gave the company a "buy" rating in a report on Wednesday, June 10th. UBS Group increased their target price on Nucor from $224.00 to $256.00 and gave the company a "neutral" rating in a research note on Tuesday, July 28th. BNP Paribas Exane raised their target price on Nucor from $210.00 to $248.00 and gave the stock an "outperform" rating in a report on Monday, May 4th. Finally, Citigroup restated a "buy" rating on shares of Nucor in a research report on Wednesday, July 29th. Twelve equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $273.31.

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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