Capital World Investors Acquires 509,019 Shares of Nucor Corporation $NUE

Key Points

• Capital World Investors increased its Nucor stake by 20.1% in Q3, buying an additional 509,019 shares to hold 3,042,761 shares (about 1.33% of the company) valued at roughly $412.08 million per its SEC filing.
• Nucor's board authorized a $4.0 billion share repurchase program (up to 9.7% of outstanding stock) and declared a quarterly dividend of $0.56 ($2.24 annualized, ~1.3% yield) payable May 11 with an ex‑dividend date of March 31.
• In the latest quarter Nucor missed expectations, reporting EPS of $1.73 vs. $1.91 expected and revenue of $7.69B vs. $7.93B expected; analysts rate the stock a "Moderate Buy" with an average price target of about $187.90.

Capital World Investors boosted its stake in Nucor Corporation (NYSE:NUE - Free Report) by 20.1% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 3,042,761 shares of the basic materials company's stock after buying an additional 509,019 shares during the quarter. Capital World Investors owned approximately 1.33% of Nucor worth $412,081,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of NUE. Whittier Trust Co. increased its holdings in Nucor by 5.6% in the 3rd quarter. Whittier Trust Co. now owns 1,330 shares of the basic materials company's stock worth $184,000 after acquiring an additional 70 shares during the last quarter. IMA Advisory Services Inc. boosted its holdings in Nucor by 51.4% in the 2nd quarter. IMA Advisory Services Inc. now owns 221 shares of the basic materials company's stock valued at $29,000 after purchasing an additional 75 shares during the period. HUB Investment Partners LLC raised its stake in Nucor by 1.9% in the second quarter. HUB Investment Partners LLC now owns 4,099 shares of the basic materials company's stock valued at $531,000 after purchasing an additional 75 shares in the last quarter. Dorsey & Whitney Trust CO LLC boosted its holdings in shares of Nucor by 1.9% in the 2nd quarter. Dorsey & Whitney Trust CO LLC now owns 4,326 shares of the basic materials company's stock worth $560,000 after purchasing an additional 79 shares in the last quarter. Finally, Versant Capital Management Inc grew its holdings in shares of Nucor by 23.2% during the 3rd quarter. Versant Capital Management Inc now owns 425 shares of the basic materials company's stock valued at $58,000 after purchasing an additional 80 shares during the last quarter. Hedge funds and other institutional investors own 76.48% of the company's stock.

Insider Buying and Selling at Nucor

In other Nucor news, EVP Kenneth Rex Query sold 7,452 shares of the stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $196.02, for a total transaction of $1,460,741.04. Following the sale, the executive vice president directly owned 76,628 shares of the company's stock, valued at approximately $15,020,620.56. This trade represents a 8.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Daniel R. Needham sold 3,881 shares of the firm's stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $178.00, for a total value of $690,818.00. Following the sale, the executive vice president directly owned 88,298 shares in the company, valued at approximately $15,717,044. This trade represents a 4.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 34,351 shares of company stock worth $6,206,158 over the last ninety days. 0.71% of the stock is owned by insiders.

Nucor Stock Up 0.7%

Shares of NYSE NUE opened at $170.70 on Wednesday. The firm has a 50-day simple moving average of $177.09 and a two-hundred day simple moving average of $158.21. Nucor Corporation has a 1 year low of $97.59 and a 1 year high of $196.90. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.94 and a quick ratio of 1.57. The company has a market cap of $38.88 billion, a P/E ratio of 22.64, a PEG ratio of 0.61 and a beta of 1.83.

Nucor (NYSE:NUE - Get Free Report) last released 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). The company had revenue of $7.69 billion during the quarter, compared to analysts' expectations of $7.93 billion. Nucor had a net margin of 5.37% and a return on equity of 8.26%. Nucor's quarterly revenue was up 8.6% on a year-over-year basis. During the same period last year, the firm earned $1.22 earnings per share. Research analysts anticipate that Nucor Corporation will post 7.64 earnings per share for the current year.

Nucor declared that its board has authorized a stock 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 buy up to 9.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Nucor Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, May 11th. Stockholders of record on Tuesday, March 31st will be issued a $0.56 dividend. This represents a $2.24 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, March 31st. Nucor's dividend payout ratio is 29.71%.

Analysts Set New Price Targets

A number of equities analysts have issued reports on NUE shares. Morgan Stanley restated an "equal weight" rating and issued a $180.00 price objective (up from $165.00) on shares of Nucor in a research report on Friday, January 9th. Seaport Research Partners upped their price target on Nucor from $170.00 to $185.00 and gave the stock a "buy" rating in a research note on Friday, January 30th. JPMorgan Chase & Co. increased their price target on shares of Nucor from $175.00 to $200.00 and gave the company an "overweight" rating in a report on Friday, December 5th. BMO Capital Markets upped their target price on shares of Nucor from $190.00 to $196.00 and gave the company an "outperform" rating in a research note on Tuesday, March 3rd. Finally, UBS Group cut 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. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $187.90.

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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