Capital International Inc. CA Buys New Stake in Nucor Corporation $NUE

Key Points

• Capital International Inc. CA purchased a new stake of 7,810 shares (~$1,058,000) in Nucor during the third quarter.
• Nucor's board authorized a $4.0 billion share repurchase program (up to 9.7% of outstanding shares) and declared a quarterly dividend of $0.56 per share (annualized $2.24, ~1.3% yield).
• Nucor missed quarterly estimates with EPS of $1.73 vs. $1.91 expected and revenue of $7.69 billion vs. $7.93 billion, while analysts hold a consensus "Moderate Buy" rating and an average target of $187.90.

Capital International Inc. CA purchased a new stake in Nucor Corporation (NYSE:NUE - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 7,810 shares of the basic materials company's stock, valued at approximately $1,058,000.

A number of other institutional investors have also modified their holdings of the stock. Bank of Montreal Can grew its holdings in Nucor by 15.5% during the third quarter. Bank of Montreal Can now owns 165,443 shares of the basic materials company's stock worth $22,406,000 after acquiring an additional 22,202 shares during the period. Legal & General Group Plc lifted its holdings in Nucor by 11.2% in the third quarter. Legal & General Group Plc now owns 1,630,986 shares of the basic materials company's stock valued at $220,884,000 after acquiring an additional 164,021 shares during the period. Banque Cantonale Vaudoise boosted its position in Nucor by 40.4% in the 3rd quarter. Banque Cantonale Vaudoise now owns 12,120 shares of the basic materials company's stock worth $1,642,000 after purchasing an additional 3,490 shares in the last quarter. Russell Investments Group Ltd. boosted its position in Nucor by 12.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 143,219 shares of the basic materials company's stock worth $19,405,000 after purchasing an additional 15,668 shares in the last quarter. Finally, Inceptionr LLC acquired a new stake in shares of Nucor during the 3rd quarter worth approximately $834,000. Hedge funds and other institutional investors own 76.48% of the company's stock.

Nucor Price Performance

Shares of NYSE NUE opened at $171.73 on Thursday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.57 and a current ratio of 2.94. The firm has a fifty day moving average of $177.26 and a 200 day moving average of $158.30. The firm has a market cap of $39.11 billion, a PE ratio of 22.78, a PEG ratio of 0.61 and a beta of 1.83. Nucor Corporation has a one year low of $97.59 and a one year high of $196.90.

Nucor (NYSE:NUE - Get Free Report) last posted its quarterly earnings data on Monday, January 26th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.91 by ($0.18). Nucor had a net margin of 5.37% and a return on equity of 8.26%. The company had revenue of $7.69 billion for the quarter, compared to analysts' expectations of $7.93 billion. During the same period in the previous year, the business earned $1.22 earnings per share. The business's revenue for the quarter was up 8.6% on a year-over-year basis. As a group, research analysts predict that Nucor Corporation will post 7.64 EPS for the current fiscal year.

Nucor Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, May 11th. Investors of record on Tuesday, March 31st will be paid a $0.56 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $2.24 dividend on an annualized basis and a yield of 1.3%. Nucor's dividend payout ratio (DPR) is currently 29.71%.

Nucor declared that its Board of Directors has authorized a share repurchase plan on Friday, February 20th that permits the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization permits the basic materials company to reacquire up to 9.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

Several research firms recently issued reports on NUE. BNP Paribas Exane boosted their target price on shares of Nucor from $165.00 to $185.00 and gave the company an "outperform" rating in a research note on Friday, January 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Nucor in a research report on Monday, December 29th. JPMorgan Chase & Co. lifted their price objective on shares of Nucor from $175.00 to $200.00 and gave the company an "overweight" rating in a report on Friday, December 5th. UBS Group downgraded shares of Nucor from a "buy" rating to a "neutral" rating and set a $183.00 price objective for the company. in a research report on Wednesday, January 28th. Finally, Wall Street Zen cut Nucor from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Eight investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $187.90.

Insider Transactions at Nucor

In other Nucor news, EVP Allen C. Behr sold 7,568 shares of the business's stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $188.50, for a total transaction of $1,426,568.00. Following the completion of the sale, the executive vice president directly owned 67,711 shares in the company, valued at approximately $12,763,523.50. The trade was a 10.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Kenneth Rex Query sold 7,452 shares of the stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $196.02, for a total value of $1,460,741.04. Following the transaction, the executive vice president directly owned 76,628 shares of the company's stock, valued at $15,020,620.56. The trade was a 8.86% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 34,351 shares of company stock valued at $6,206,158. 0.46% of the stock is currently owned by corporate insiders.

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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