Nucor (NYSE:NUE) Shares Gap Down Following Weak Earnings

Nucor Co. (NYSE:NUE - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $191.63, but opened at $177.70. Nucor shares last traded at $180.77, with a volume of 1,024,329 shares trading hands.

The basic materials company reported $3.46 earnings per share for the quarter, missing the consensus estimate of $3.62 by ($0.16). The business had revenue of $8.14 billion during the quarter, compared to analysts' expectations of $8.26 billion. Nucor had a return on equity of 21.42% and a net margin of 13.03%. The business's quarterly revenue was down 6.6% on a year-over-year basis. During the same period in the prior year, the business posted $4.45 earnings per share.

Nucor Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 10th. Shareholders of record on Thursday, March 28th will be given a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 1.24%. The ex-dividend date of this dividend is Wednesday, March 27th. Nucor's dividend payout ratio is presently 12.01%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on NUE. JPMorgan Chase & Co. lifted their price target on shares of Nucor from $180.00 to $195.00 and gave the company a "neutral" rating in a research report on Tuesday, April 16th. Citigroup upgraded shares of Nucor from a "neutral" rating to a "buy" rating and lifted their price target for the company from $180.00 to $240.00 in a research report on Wednesday, March 13th. UBS Group began coverage on shares of Nucor in a research report on Tuesday, January 16th. They set a "buy" rating and a $210.00 price target for the company. Finally, StockNews.com cut shares of Nucor from a "buy" rating to a "hold" rating in a research report on Tuesday. Four research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $192.83.

Insider Activity

In other news, insider Michael D. Keller sold 3,145 shares of the firm's stock in a transaction that occurred on Thursday, March 21st. The shares were sold at an average price of $193.67, for a total value of $609,092.15. Following the completion of the transaction, the insider now owns 24,873 shares of the company's stock, valued at $4,817,153.91. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In related news, insider Michael D. Keller sold 3,145 shares of Nucor stock in a transaction that occurred on Thursday, March 21st. The shares were sold at an average price of $193.67, for a total value of $609,092.15. Following the completion of the transaction, the insider now owns 24,873 shares in the company, valued at $4,817,153.91. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kenneth Rex Query sold 5,500 shares of Nucor stock in a transaction that occurred on Thursday, February 1st. The stock was sold at an average price of $186.37, for a total transaction of $1,025,035.00. Following the completion of the transaction, the executive vice president now owns 85,326 shares of the company's stock, valued at approximately $15,902,206.62. The disclosure for this sale can be found here. Over the last quarter, insiders sold 38,151 shares of company stock valued at $7,308,683. 0.46% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. PFG Advisors lifted its position in shares of Nucor by 21.3% during the 3rd quarter. PFG Advisors now owns 2,359 shares of the basic materials company's stock worth $369,000 after buying an additional 415 shares during the last quarter. Summit Global Investments purchased a new stake in shares of Nucor during the 3rd quarter worth approximately $235,000. Douglas Lane & Associates LLC lifted its position in shares of Nucor by 109.2% during the 3rd quarter. Douglas Lane & Associates LLC now owns 56,015 shares of the basic materials company's stock worth $8,758,000 after buying an additional 29,241 shares during the last quarter. 1900 Wealth Management LLC purchased a new stake in shares of Nucor during the 3rd quarter worth approximately $212,000. Finally, Avior Wealth Management LLC lifted its position in shares of Nucor by 310.9% during the 3rd quarter. Avior Wealth Management LLC now owns 1,360 shares of the basic materials company's stock worth $213,000 after buying an additional 1,029 shares during the last quarter. Hedge funds and other institutional investors own 76.48% of the company's stock.

Nucor Stock Down 8.9 %

The firm has a market cap of $41.91 billion, a PE ratio of 9.71 and a beta of 1.61. The company has a debt-to-equity ratio of 0.30, a quick ratio of 2.35 and a current ratio of 3.57. The firm's 50-day moving average price is $191.20 and its two-hundred day moving average price is $174.18.

About Nucor

Nucor Corporation engages in manufacture and sale of steel and steel products. It operates in three segments: steel mills, steel products, and raw materials. The Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling structural steel products; bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and engineered special bar quality products; and engages in the steel trading and rebar distribution businesses.