Nucor (NYSE:NUE) Given New $248.00 Price Target at BNP Paribas Exane

Key Points

• BNP Paribas Exane raised its price target on Nucor to $248 (from $210) and kept an "outperform" rating, while other analysts (Goldman $260, Jefferies $250) have also lifted targets, leaving a consensus target of $243.80 and a "Moderate Buy" rating.
• Nucor reported a strong quarter—EPS of $3.23 vs. $2.82 expected and revenue of $9.50 billion (up 21.3% YoY)—and its board authorized a $4.0 billion share buyback (~9.7% of shares).
• Shares traded up to $230.66, near the 52‑week high of $230.74, valuing Nucor at about $52.5 billion with a P/E of 22.8.

Nucor (NYSE:NUE - Get Free Report) had its price objective upped by equities researchers at BNP Paribas Exane from $210.00 to $248.00 in a research note issued on Monday,MarketScreener reports. The firm currently has an "outperform" rating on the basic materials company's stock. BNP Paribas Exane's target price would indicate a potential upside of 7.52% from the stock's previous close.

Several other analysts have also recently weighed in on NUE. The Goldman Sachs Group increased their price target on shares of Nucor from $240.00 to $260.00 in a research note on Friday. Jefferies Financial Group increased 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. UBS Group cut shares of Nucor from a "buy" rating to a "neutral" rating and increased their price target for the company from $190.00 to $224.00 in a research note on Tuesday, April 28th. Wall Street Zen raised shares of Nucor from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, KeyCorp assumed coverage on shares of Nucor in a research note on Wednesday, March 25th. They issued a "sector weight" rating for the company. Eight investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Nucor currently has a consensus rating of "Moderate Buy" and a consensus target price of $243.80.

Nucor Price Performance

NYSE NUE traded up $4.85 during trading hours on Monday, hitting $230.66. 134,156 shares of the company's stock traded hands, compared to its average volume of 1,660,378. The firm's 50-day moving average is $180.91 and its 200-day moving average is $169.22. Nucor has a 52-week low of $106.21 and a 52-week high of $230.74. 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 has a market capitalization of $52.51 billion, a PE ratio of 22.84, a PEG ratio of 0.65 and a beta of 1.87.

Nucor (NYSE:NUE - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The basic materials company reported $3.23 earnings per share for the quarter, beating the consensus estimate of $2.82 by $0.41. Nucor had a net margin of 6.82% and a return on equity of 10.68%. The business had revenue of $9.50 billion during the quarter, compared to analysts' expectations of $8.88 billion. During the same quarter in the prior year, the company posted $0.77 EPS. The business's revenue for the quarter was up 21.3% on a year-over-year basis. Equities analysts forecast that Nucor will post 13.64 EPS for the current fiscal year.

Nucor declared that its board has authorized a share buyback program on Friday, February 20th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the basic materials company to buy up to 9.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP David A. Sumoski sold 33,068 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $225.67, for a total transaction 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 approximately $54,914,312.13. This trade represents a 11.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 stock was sold at an average price of $196.02, for a total transaction 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. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Nucor

A number of hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in Nucor during the 4th quarter worth approximately $609,002,000. AQR Capital Management LLC lifted its holdings in Nucor by 580.9% during 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 lifted its holdings in Nucor by 20.1% during 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. lifted its holdings in Nucor by 169.0% during 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 lifted its holdings in Nucor by 27.5% during 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. Hedge funds and other institutional investors own 76.48% of the company's stock.

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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