Nucor (NYSE:NUE) Shares Down 7.9% - Here's What Happened

Key Points

• Nucor shares fell 7.9% to $243.32 during Wednesday trading, with volume about 55% below the average daily level.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus, with 12 Buy ratings, four Holds and an average price target of $273.31.
• Nucor’s latest quarterly results exceeded expectations, reporting $4.84 in EPS and $10.40 billion in revenue, while quarterly revenue rose 23% year over year. The company also paid a $0.56-per-share dividend, but insiders sold 18,528 shares worth about $4.8 million over the last quarter.

Nucor Corporation (NYSE:NUE - Get Free Report) fell 7.9% during trading on Wednesday . The stock traded as low as $254.12 and last traded at $243.32. Approximately 723,548 shares traded hands during trading, a decline of 55% from the average daily volume of 1,593,413 shares. The stock had previously closed at $264.19.

Wall Street Analyst Weigh In

NUE has been the subject of several recent analyst reports. KeyCorp upgraded shares of Nucor from a "sector weight" rating to an "overweight" rating and set a $274.00 target price for the company in a research note on Wednesday, June 24th. Barclays increased their price objective on Nucor from $272.00 to $295.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. UBS Group boosted their target price on Nucor from $224.00 to $256.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 28th. The Goldman Sachs Group upped their target price on Nucor from $260.00 to $284.00 and gave the company a "buy" rating in a research report on Tuesday, June 16th. Finally, Morgan Stanley set a $270.00 price target on Nucor in a research note on Wednesday, July 29th. Twelve analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $273.31.

Nucor Stock Down 9.4%

The firm has a market capitalization of $54.32 billion, a price-to-earnings ratio of 19.15, a P/E/G ratio of 0.60 and a beta of 1.89. The company has a quick ratio of 1.36, a current ratio of 2.51 and a debt-to-equity ratio of 0.27. The company's 50 day moving average price is $247.76 and its 200 day moving average price is $215.68.

Nucor (NYSE:NUE - Get Free Report) last issued its earnings results on Monday, July 27th. The basic materials company reported $4.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.46 by $0.38. The company had revenue of $10.40 billion during the quarter, compared to analyst estimates of $10.15 billion. Nucor had a return on equity of 12.73% and a net margin of 7.99%.The firm's quarterly revenue was up 23.0% on a year-over-year basis. During the same quarter last year, the business posted $2.60 EPS. As a group, research analysts forecast that Nucor Corporation will post 17.95 earnings per share for the current fiscal year.

Nucor Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 11th. Investors of record on Tuesday, June 30th were issued a dividend of $0.56 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.24 dividend on an annualized basis and a dividend yield of 0.9%. Nucor's payout ratio is 17.86%.

Insider Activity at Nucor

In other Nucor news, EVP Thomas J. Batterbee sold 4,000 shares of Nucor stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $261.02, for a total transaction of $1,044,080.00. Following the completion of the sale, the executive vice president directly owned 16,138 shares in the company, valued at approximately $4,212,340.76. The trade was a 19.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible 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 shares were sold at an average price of $258.46, for a total transaction of $2,729,337.60. Following the completion of the sale, the executive vice president directly owned 97,865 shares in the company, valued at $25,294,187.90. This trade represents a 9.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,528 shares of company stock worth $4,793,035 over the last quarter. Insiders own 0.62% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. RKL Wealth Management LLC lifted its stake in Nucor by 0.9% in the 1st quarter. RKL Wealth Management LLC now owns 5,318 shares of the basic materials company's stock valued at $899,000 after buying an additional 48 shares in the last quarter. Focus Financial Network Inc. raised its holdings in shares of Nucor by 3.6% during the second quarter. Focus Financial Network Inc. now owns 1,417 shares of the basic materials company's stock valued at $316,000 after acquiring an additional 49 shares during the last quarter. Empirical Asset Management LLC raised its holdings in shares of Nucor by 2.6% during the fourth quarter. Empirical Asset Management LLC now owns 2,130 shares of the basic materials company's stock valued at $347,000 after acquiring an additional 54 shares during the last quarter. Krilogy Financial LLC lifted its position in shares of Nucor by 4.1% in the fourth quarter. Krilogy Financial LLC now owns 1,531 shares of the basic materials company's stock valued at $272,000 after acquiring an additional 61 shares in the last quarter. Finally, Moody National Bank Trust Division boosted its stake in shares of Nucor by 4.6% in the second quarter. Moody National Bank Trust Division now owns 1,396 shares of the basic materials company's stock worth $311,000 after acquiring an additional 62 shares during the last quarter. 76.48% of the stock is currently owned by institutional investors and hedge funds.

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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