Capital World Investors Raises Position in Nucor Corporation $NUE

Key Points

• Capital World Investors slightly increased its stake in Nucor by 0.2% in the fourth quarter, ending with about 3.05 million shares valued at roughly $497.5 million.
• Nucor reported strong quarterly results, with earnings of $3.23 per share and revenue of $9.50 billion, both beating analyst estimates and marking year-over-year revenue growth of 21.3%.
• The company has a newly authorized $4 billion stock buyback plan, while analysts currently hold a consensus rating of Moderate Buy with an average price target of $255.67.

Capital World Investors boosted its stake in Nucor Corporation (NYSE:NUE - Free Report) by 0.2% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,050,218 shares of the basic materials company's stock after buying an additional 7,457 shares during the quarter. Capital World Investors owned approximately 1.33% of Nucor worth $497,521,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Havemeyer Place LP purchased a new position in Nucor in the 4th quarter valued at about $1,897,000. Pinebridge Investments LLC purchased a new position in Nucor in the 4th quarter valued at about $5,803,000. Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its stake in Nucor by 55.5% in the 4th quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 74,786 shares of the basic materials company's stock valued at $12,198,000 after buying an additional 26,700 shares in the last quarter. Parallel Advisors LLC lifted its stake in Nucor by 5.1% in the 4th quarter. Parallel Advisors LLC now owns 3,134 shares of the basic materials company's stock valued at $511,000 after buying an additional 153 shares in the last quarter. Finally, TruNorth Capital Management LLC lifted its stake in Nucor by 6.1% in the 4th quarter. TruNorth Capital Management LLC now owns 1,697 shares of the basic materials company's stock valued at $277,000 after buying an additional 97 shares in the last quarter. 76.48% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Randy J. Spicer sold 2,500 shares of Nucor stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $225.00, for a total transaction of $562,500.00. Following the sale, the executive vice president owned 20,510 shares of the company's stock, valued at approximately $4,614,750. The trade was a 10.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Allen C. Behr sold 10,096 shares of Nucor stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $226.08, for a total transaction of $2,282,503.68. Following the sale, the executive vice president directly owned 62,871 shares in the company, valued at approximately $14,213,875.68. The trade was a 13.84% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 82,378 shares of company stock worth $18,963,930. 0.62% of the stock is owned by company insiders.

Nucor Trading Down 0.1%

NUE opened at $254.14 on Monday. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.90 and a quick ratio of 1.55. The company's 50 day simple moving average is $213.65 and its two-hundred day simple moving average is $185.16. Nucor Corporation has a 1-year low of $115.66 and a 1-year high of $264.67. The firm has a market capitalization of $57.88 billion, a price-to-earnings ratio of 25.16, a price-to-earnings-growth ratio of 0.67 and a beta of 1.88.

Nucor (NYSE:NUE - Get Free Report) last released its quarterly earnings results on Monday, April 27th. The basic materials company reported $3.23 EPS for the quarter, beating the consensus estimate of $2.82 by $0.41. The firm had revenue of $9.50 billion for the quarter, compared to analyst estimates of $8.88 billion. Nucor had a net margin of 6.82% and a return on equity of 10.68%. The business's revenue for the quarter was up 21.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.77 EPS. Analysts expect that Nucor Corporation will post 14.84 EPS for the current fiscal year.

Nucor announced that its board has authorized a stock 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 buy 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 shares are undervalued.

Analyst Ratings Changes

A number of research analysts recently weighed in on NUE shares. UBS Group lowered shares of Nucor from a "buy" rating to a "neutral" rating and raised their price target for the company from $190.00 to $224.00 in a research note on Tuesday, April 28th. Citigroup raised their price target on shares of Nucor from $180.00 to $260.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. Jefferies Financial Group raised their price target on shares of Nucor from $225.00 to $250.00 and gave the company a "buy" rating in a research note on Tuesday, April 28th. CICC Research started coverage on shares of Nucor in a research note on Monday, May 25th. They issued an "outperform" rating on the stock. Finally, JPMorgan Chase & Co. raised their target price on shares of Nucor from $212.00 to $240.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 29th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $255.67.

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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