UBS Group Issues Positive Forecast for Nucor (NYSE:NUE) Stock Price

Key Points

• UBS raised Nucor’s price target from $224 to $256 but maintained a “neutral” rating, implying approximately 3.2% downside from the stock’s current price.
• Nucor exceeded second-quarter expectations with EPS of $4.84 versus $4.46 projected and revenue of $10.40 billion versus $10.15 billion; revenue increased 23% year over year.
• Analyst sentiment remains broadly positive, with 12 Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $268.77.

Nucor (NYSE:NUE - Get Free Report) had its price objective hoisted by stock analysts at UBS Group from $224.00 to $256.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the basic materials company's stock. UBS Group's price objective indicates a potential downside of 3.20% from the stock's current price.

A number of other research firms also recently issued reports on NUE. Zacks Research downgraded shares of Nucor from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Wall Street Zen raised shares of Nucor from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 16th. CICC Research started coverage on Nucor in a report on Monday, May 25th. They set an "outperform" rating on the stock. Citigroup reiterated a "positive" rating on shares of Nucor in a research report on Wednesday, July 15th. Finally, KeyCorp upgraded shares of Nucor from a "sector weight" rating to an "overweight" rating and set a $274.00 price objective for the company in a research report on Wednesday, June 24th. Twelve research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Nucor has an average rating of "Moderate Buy" and an average price target of $268.77.

Nucor Stock Performance

Nucor stock traded up $16.61 during midday trading on Tuesday, reaching $264.47. 1,677,640 shares of the company traded hands, compared to its average volume of 1,622,200. The business has a 50 day moving average of $240.33 and a two-hundred day moving average of $204.98. 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 firm has a market capitalization of $60.23 billion, a price-to-earnings ratio of 26.16, a price-to-earnings-growth ratio of 0.57 and a beta of 1.91. Nucor has a 12 month low of $131.32 and a 12 month high of $270.90.

Nucor (NYSE:NUE - Get Free Report) last issued its quarterly earnings results on Monday, July 27th. The basic materials company reported $4.84 EPS for the quarter, topping analysts' consensus estimates of $4.46 by $0.38. The business had revenue of $10.40 billion during the quarter, compared to analysts' expectations of $10.15 billion. Nucor had a return on equity of 10.68% and a net margin of 6.82%.The business's quarterly revenue was up 23.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.60 earnings per share. As a group, research analysts predict that Nucor will post 17.53 earnings per share for the current year.

Insider Activity at Nucor

In related news, EVP Allen C. Behr sold 10,096 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $226.08, for a total value of $2,282,503.68. Following the sale, the executive vice president owned 62,871 shares in the company, valued at $14,213,875.68. This represents a 13.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Michael D. Keller sold 4,554 shares of Nucor stock in a transaction on Monday, May 4th. The stock was sold at an average price of $225.86, for a total value of $1,028,566.44. Following the transaction, the insider directly owned 16,834 shares of the company's stock, valued at $3,802,127.24. This trade represents a 21.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 82,378 shares of company stock worth $18,963,930. 0.62% of the stock is currently owned by company insiders.

Institutional Trading of Nucor

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Strive Financial Group LLC purchased a new stake in shares of Nucor during the fourth quarter worth about $27,000. Stance Capital LLC acquired a new position in Nucor in the third quarter valued at $25,000. Bartlett & CO. Wealth Management LLC boosted its stake 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 worth $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 about $32,000. Finally, Motiv8 Investments LLC purchased a new position in shares of Nucor during the 4th quarter worth about $32,000. Hedge funds and other institutional investors own 76.48% of the company's stock.

Nucor News Roundup

Here are the key news stories impacting Nucor this week:

• Positive Sentiment: Q2 results exceeded expectations: Adjusted earnings were $4.84 per diluted share, above the $4.46 consensus estimate, while revenue reached $10.40 billion versus expectations of $10.15 billion. Revenue rose 23% year over year, and adjusted earnings nearly doubled from the prior-year quarter. Nucor posts record steel shipments on higher pricing, strong demand
• Positive Sentiment: Pricing and volumes drove the improvement: Nucor reported record steel-mill shipments, with higher average selling prices and stronger demand lifting profitability across its steel mills, raw materials and steel products businesses. Net earnings attributable to shareholders totaled $1.16 billion, compared with $603 million a year earlier. Nucor beats quarterly results on strong pricing, demand
• Positive Sentiment: Management expects further earnings improvement: Nucor forecast higher consolidated reported earnings in the third quarter, suggesting steel demand and pricing momentum may continue. This forward outlook was an additional catalyst for NUE. Nucor's Q2 Earnings and Revenues Surpass Estimates on Higher Prices
• Positive Sentiment: Shareholder returns remained supportive: Nucor returned approximately $479 million through dividends and share repurchases during the quarter and affirmed its regular cash dividend. The company also repurchased about 1.53 million shares. Nucor could be undervalued on Q2 results and dividend affirmation
• Neutral Sentiment: Analyst estimates edged higher, but ratings remained cautious: Zacks Research made small upward revisions to longer-term quarterly EPS forecasts while maintaining a “Hold” rating, indicating improved expectations without a major change in analyst conviction.

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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