Bornite Capital Management LP Buys New Position in Nucor Corporation $NUE

Key Points

• Bornite Capital Management opened a new position in Nucor, buying 300,000 shares worth about $48.9 million. The stake represents roughly 4.8% of Bornite’s portfolio and about 0.13% of Nucor.
• Analysts have turned more bullish on Nucor, with multiple firms raising price targets and ratings. The consensus view is now Moderate Buy, with an average target price of $261.54.
• Nucor reported strong quarterly results, including EPS of $3.23 versus expectations of $2.82 and revenue of $9.50 billion, while also announcing a quarterly dividend of $0.56 per share and a $4 billion share buyback authorization.

Bornite Capital Management LP purchased a new stake in Nucor Corporation (NYSE:NUE - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 300,000 shares of the basic materials company's stock, valued at approximately $48,933,000. Nucor makes up about 4.8% of Bornite Capital Management LP's portfolio, making the stock its 11th largest position. Bornite Capital Management LP owned about 0.13% of Nucor as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Nucor in the 4th quarter worth approximately $609,002,000. AQR Capital Management LLC raised its holdings in shares of Nucor by 580.9% in the 2nd quarter. AQR Capital Management LLC now owns 653,845 shares of the basic materials company's stock worth $84,699,000 after buying an additional 557,819 shares in the last quarter. Capital World Investors raised its holdings in shares of Nucor by 20.1% in the 3rd quarter. Capital World Investors now owns 3,042,761 shares of the basic materials company's stock worth $412,081,000 after buying an additional 509,019 shares in the last quarter. Vaughan Nelson Investment Management L.P. raised its holdings in shares of Nucor by 169.0% in the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 779,940 shares of the basic materials company's stock worth $127,216,000 after buying an additional 489,950 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in shares of Nucor by 27.5% in the 4th quarter. Bank of New York Mellon Corp now owns 1,780,423 shares of the basic materials company's stock worth $290,405,000 after buying an additional 383,952 shares in the last quarter. Institutional investors and hedge funds own 76.48% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on NUE shares. Zacks Research raised Nucor from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 12th. Wall Street Zen raised Nucor from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 16th. JPMorgan Chase & Co. increased their price target on Nucor from $240.00 to $282.00 and gave the stock an "overweight" rating in a research report on Wednesday. Barclays assumed coverage on Nucor in a research report on Thursday, May 21st. They set an "overweight" rating and a $270.00 price target on the stock. Finally, BMO Capital Markets increased their price target on Nucor from $250.00 to $285.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 3rd. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $261.54.

Insider Buying and Selling

In other news, EVP Daniel R. Needham sold 12,888 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $226.00, for a total value of $2,912,688.00. Following the completion of the transaction, the executive vice president directly owned 89,724 shares in the company, valued at approximately $20,277,624. This represents a 12.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP David A. Sumoski sold 33,068 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $225.67, for a total value of $7,462,455.56. Following the completion of the transaction, the executive vice president owned 243,339 shares of the company's stock, valued at $54,914,312.13. The trade was a 11.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 82,378 shares of company stock worth $18,963,930 in the last ninety days. Insiders own 0.62% of the company's stock.

More Nucor News

Here are the key news stories impacting Nucor this week:

• Positive Sentiment: JPMorgan raised its price target on Nucor to $282 from $240 and reiterated an Overweight rating, citing expectations for strong second-quarter results. JPMorgan Raises Nucor (NUE) Forecast Ahead of Expected Strong Q2 Results
• Positive Sentiment: BofA also boosted its price target on Nucor to $290 from $265, reinforcing a constructive view on the company’s earnings and valuation outlook. BofA adjusts price target on Nucor to $290 from $265
• Positive Sentiment: Recent coverage notes that Nucor has delivered a very strong one-year share performance, keeping investor attention on whether the rally can continue. Nucor (NUE) Stock After 124% One-Year Surge Is There Still Value Here
• Neutral Sentiment: An article asking whether Nucor is still a good stock to buy now reflects continued investor debate about valuation after the stock’s sharp run-up. Is Nucor Corporation (NUE) A Good Stock To Buy Now?

Nucor Stock Up 2.0%

NYSE:NUE opened at $266.06 on Friday. Nucor Corporation has a 12-month low of $117.21 and a 12-month high of $268.80. The company has a quick ratio of 1.55, a current ratio of 2.90 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $60.59 billion, a P/E ratio of 26.34, a P/E/G ratio of 0.68 and a beta of 1.88. The stock's fifty day simple moving average is $222.60 and its 200-day simple moving average is $188.67.

Nucor (NYSE:NUE - Get Free Report) last announced its quarterly earnings results 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. Nucor had a return on equity of 10.68% and a net margin of 6.82%.The company had revenue of $9.50 billion during the quarter, compared to analysts' expectations of $8.88 billion. During the same period in the prior year, the company earned $0.77 EPS. Nucor's revenue was up 21.3% compared to the same quarter last year. Equities research analysts expect that Nucor Corporation will post 15.71 earnings per share for the current year.

Nucor Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Tuesday, June 30th will be paid a $0.56 dividend. This represents a $2.24 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, June 30th. Nucor's dividend payout ratio is presently 22.18%.

Nucor announced that its board has authorized a share buyback plan on Friday, February 20th that authorizes the company to repurchase $4.00 billion in shares. This repurchase authorization authorizes the basic materials company to repurchase up to 9.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its stock is undervalued.

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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