Zacks Investment Research downgraded shares of Nucor (NYSE:NUE) from a buy rating to a hold rating in a research note published on Monday.
According to Zacks, “Estimates for Nucor for the current quarter have been stable of late. Nucor remains committed to expand its production capabilities and grow its business through strategic acquisitions. It is also seeing continued momentum in the automotive market. However, Nucor’s shares have underperformed the industry it belongs to over a year. Moreover, the U.S. steel industry is adversely affected by cheaper imports, which is likely to hurt margins in the Steel Mills unit in first-quarter 2018. Nucor also faces soft demand in certain markets including non-residential construction.”
NUE has been the topic of a number of other reports. Credit Suisse Group increased their price objective on shares of Nucor from $67.00 to $73.00 and gave the company an outperform rating in a research note on Wednesday, January 31st. BMO Capital Markets increased their price objective on shares of Nucor to $72.00 and gave the company a market perform rating in a research note on Wednesday, January 31st. They noted that the move was a valuation call. Bank of America set a $75.00 price objective on shares of Nucor and gave the company a buy rating in a research note on Monday, January 8th. Morgan Stanley decreased their price target on shares of Nucor from $70.00 to $68.00 and set a hold rating on the stock in a research note on Tuesday, February 6th. Finally, ValuEngine raised shares of Nucor from a hold rating to a buy rating in a research note on Sunday, December 31st. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and ten have given a buy rating to the stock. The company presently has a consensus rating of Buy and an average target price of $69.70.
Nucor (NYSE:NUE) last issued its quarterly earnings data on Tuesday, January 30th. The basic materials company reported $0.65 EPS for the quarter, beating the Zacks’ consensus estimate of $0.55 by $0.10. The firm had revenue of $5.09 billion for the quarter, compared to analysts’ expectations of $4.86 billion. Nucor had a net margin of 6.58% and a return on equity of 13.03%. The firm’s revenue was up 28.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.50 EPS. equities analysts anticipate that Nucor will post 4.92 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, May 11th. Shareholders of record on Thursday, March 29th will be paid a dividend of $0.38 per share. The ex-dividend date of this dividend is Wednesday, March 28th. This represents a $1.52 annualized dividend and a dividend yield of 2.30%. Nucor’s dividend payout ratio is currently 42.82%.
In related news, CFO James D. Frias sold 39,037 shares of the firm’s stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $68.31, for a total value of $2,666,617.47. Following the sale, the chief financial officer now directly owns 177,204 shares of the company’s stock, valued at $12,104,805.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Victoria F. Haynes sold 3,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 7th. The stock was sold at an average price of $69.12, for a total transaction of $207,360.00. Following the completion of the sale, the director now directly owns 30,573 shares in the company, valued at $2,113,205.76. The disclosure for this sale can be found here. Insiders have sold a total of 95,387 shares of company stock worth $6,285,411 over the last ninety days. 0.70% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Green Square Capital LLC boosted its position in shares of Nucor by 68.6% in the fourth quarter. Green Square Capital LLC now owns 133,723 shares of the basic materials company’s stock worth $8,553,000 after acquiring an additional 54,431 shares during the last quarter. Cambridge Investment Research Advisors Inc. boosted its position in shares of Nucor by 7.5% in the fourth quarter. Cambridge Investment Research Advisors Inc. now owns 49,802 shares of the basic materials company’s stock worth $3,166,000 after acquiring an additional 3,464 shares during the last quarter. D.B. Root & Company LLC acquired a new stake in shares of Nucor in the fourth quarter worth approximately $394,000. Xact Kapitalforvaltning AB boosted its position in shares of Nucor by 16.2% in the fourth quarter. Xact Kapitalforvaltning AB now owns 30,276 shares of the basic materials company’s stock worth $1,925,000 after acquiring an additional 4,220 shares during the last quarter. Finally, Envestnet Asset Management Inc. boosted its position in shares of Nucor by 149.5% in the fourth quarter. Envestnet Asset Management Inc. now owns 82,459 shares of the basic materials company’s stock worth $5,242,000 after acquiring an additional 49,410 shares during the last quarter. 80.16% of the stock is currently owned by institutional investors and hedge funds.
Nucor Company Profile
Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality).
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