Nucor (NYSE:NUE) Hits New 1-Year High on Analyst Upgrade

Key Points

• Nucor shares hit a new 52-week high after BofA raised its price target from $265 to $290, with the stock trading as high as $267.83 intraday.
• Several other analysts also turned more positive on the steelmaker, including increased targets from Seaport Research Partners, Jefferies, and BMO Capital Markets. Overall, the stock now has a consensus rating of Moderate Buy and a consensus target price of $261.54.
• Nucor reported stronger-than-expected quarterly results, with EPS of $3.23 on revenue of $9.50 billion, while also announcing a $0.56 quarterly dividend and maintaining a $4 billion share buyback program.

Nucor Corporation (NYSE:NUE - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Friday after BofA raised their price target on the stock from $265.00 to $290.00. The company traded as high as $267.83 and last traded at $267.4070, with a volume of 54576 shares traded. The stock had previously closed at $260.90.

Several other analysts have also weighed in on the stock. Seaport Research Partners lifted their price objective on shares of Nucor from $245.00 to $285.00 and gave the company a "buy" rating in a research note on Wednesday. Jefferies Financial Group raised their price target on shares of Nucor from $225.00 to $250.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. Zacks Research raised shares of Nucor from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. BMO Capital Markets upped their price objective on shares of Nucor from $250.00 to $285.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Finally, Morgan Stanley increased their price objective on shares of Nucor from $180.00 to $227.00 and gave the stock an "equal weight" rating in a research report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $261.54.

Insiders Place Their Bets

In other Nucor news, EVP Bradley Ford sold 2,240 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $232.13, for a total transaction of $519,971.20. Following the completion of the sale, the executive vice president owned 43,649 shares in the company, valued at approximately $10,132,242.37. The trade was a 4.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP John J. Hollatz sold 10,560 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $258.46, for a total transaction of $2,729,337.60. Following the transaction, the executive vice president owned 97,865 shares in the company, valued at approximately $25,294,187.90. The trade was a 9.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 82,378 shares of company stock worth $18,963,930 in the last quarter. Insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Nucor

A number of hedge funds have recently added to or reduced their stakes in the stock. Strive Financial Group LLC bought a new position in shares of Nucor in the fourth quarter valued at approximately $27,000. Stance Capital LLC bought a new stake in Nucor during the third quarter worth $25,000. Bartlett & CO. Wealth Management LLC raised its position in Nucor by 49.2% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 191 shares of the basic materials company's stock valued at $32,000 after buying an additional 63 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new stake in Nucor in the 4th quarter valued at $32,000. Finally, Motiv8 Investments LLC bought a new position in Nucor during the 4th quarter valued at $32,000. Institutional investors and hedge funds own 76.48% of the company's stock.

Nucor Trading Up 2.2%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.55 and a current ratio of 2.90. The firm has a market capitalization of $60.75 billion, a P/E ratio of 26.41, a PEG ratio of 0.66 and a beta of 1.88. The firm has a 50 day simple moving average of $220.75 and a two-hundred day simple moving average of $188.13.

Nucor (NYSE:NUE - Get Free Report) last announced its 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. Nucor had a net margin of 6.82% and a return on equity of 10.68%. The company had revenue of $9.50 billion during the quarter, compared to the consensus estimate of $8.88 billion. During the same quarter in the prior year, the company posted $0.77 earnings per share. The firm's revenue for the quarter was up 21.3% on a year-over-year basis. Equities research analysts forecast that Nucor Corporation will post 14.84 earnings per share for the current year.

Nucor Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.56 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $2.24 annualized dividend and a dividend yield of 0.8%. Nucor's dividend payout ratio (DPR) is currently 22.18%.

Nucor announced that its Board of Directors has approved a share buyback program on Friday, February 20th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the basic materials company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management 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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