Nucor (NYSE:NUE) Stock Price Expected to Rise, The Goldman Sachs Group Analyst Says

Key Points

• Goldman Sachs raised its price target on Nucor to $260 (from $240), implying roughly a 15% upside from the prior close.
• Nucor beat quarterly estimates with $3.23 EPS vs. $2.82 expected and $9.5B in revenue (up 21.3% year-over-year), and analysts project about 13.17 EPS for the current year.
• The board authorized a $4.0 billion stock repurchase program (up to ~9.7% of shares outstanding), signaling management believes the shares may be undervalued.

Nucor (NYSE:NUE - Get Free Report) had its price target lifted by analysts at The Goldman Sachs Group from $240.00 to $260.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The Goldman Sachs Group's target price suggests a potential upside of 15.08% from the company's previous close.

A number of other equities research analysts have also recently commented on NUE. KeyCorp started coverage on Nucor in a research note on Wednesday, March 25th. They set a "sector weight" rating for the company. Wells Fargo & Company boosted their target price on Nucor from $213.00 to $244.00 and gave the company an "overweight" rating in a research note on Wednesday. BNP Paribas Exane boosted their target price on Nucor from $185.00 to $210.00 and gave the company an "outperform" rating in a research note on Monday, April 20th. Wall Street Zen raised Nucor from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, JPMorgan Chase & Co. boosted their target price on Nucor from $212.00 to $240.00 and gave the company an "overweight" rating in a research note on Wednesday. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Nucor presently has a consensus rating of "Moderate Buy" and a consensus target price of $240.00.

Nucor Stock Up 0.3%

Shares of Nucor stock opened at $225.93 on Friday. The company has a quick ratio of 1.57, a current ratio of 2.90 and a debt-to-equity ratio of 0.30. Nucor has a 12 month low of $106.21 and a 12 month high of $227.96. The business has a fifty day simple moving average of $180.91 and a 200 day simple moving average of $168.78. The stock has a market cap of $51.43 billion, a PE ratio of 22.37, a price-to-earnings-growth ratio of 0.75 and a beta of 1.87.

Nucor (NYSE:NUE - Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The basic materials company reported $3.23 EPS for the quarter, topping analysts' consensus estimates of $2.82 by $0.41. Nucor had a return on equity of 10.68% and a net margin of 6.82%.The business had revenue of $9.50 billion during the quarter, compared to analysts' expectations of $8.88 billion. During the same period in the previous year, the firm earned $0.77 earnings per share. The firm's quarterly revenue was up 21.3% compared to the same quarter last year. Research analysts predict that Nucor will post 13.17 EPS for the current year.

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

Insider Activity

In related news, EVP Kenneth Rex Query sold 7,452 shares of the company's 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 owned 76,628 shares in the company, valued at approximately $15,020,620.56. This represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Allen C. Behr sold 7,568 shares of the company's stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $188.50, for a total value of $1,426,568.00. Following the sale, the executive vice president owned 67,711 shares in the company, valued at $12,763,523.50. The trade was a 10.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 22,520 shares of company stock worth $4,245,334 in the last quarter. 0.62% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Nucor

Institutional investors have recently bought and sold shares of the business. Stance Capital LLC acquired a new position in shares of Nucor in the third quarter valued at approximately $25,000. Strive Financial Group LLC acquired a new position in shares of Nucor in the fourth quarter valued at approximately $27,000. Motiv8 Investments LLC acquired a new position in shares of Nucor in the fourth quarter valued at approximately $32,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Nucor in the fourth quarter valued at approximately $32,000. Finally, Reflection Asset Management acquired a new position in shares of Nucor in the fourth quarter valued at approximately $36,000. Institutional investors and hedge funds 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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