Zacks Investment Research Downgrades Nucor Corp. (NUE) to Sell
Nucor Corp. (NYSE:NUE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Nucor remains exposed to certain macro economic difficulties including continued weakness in the steel industry, challenges in the Eurozone and persistent risk of cheaper imports. The company is seeing weak demand across a number of markets including energy. Rise in domestic as well as Chinese production also increase supply in a market facing weak demand.”
NUE has been the subject of a number of other reports. Bank of America Corp. cut Nucor Corp. from a “buy” rating to a “neutral” rating and set a $56.00 price target for the company. in a report on Wednesday, July 20th. Argus raised Nucor Corp. from a “hold” rating to a “buy” rating and set a $58.00 target price for the company in a research note on Friday, June 24th. BMO Capital Markets set a $51.00 target price on Nucor Corp. and gave the company a “hold” rating in a research note on Wednesday, September 14th. Barclays PLC lifted their target price on Nucor Corp. from $52.00 to $55.00 and gave the company an “overweight” rating in a research note on Tuesday, July 12th. Finally, Citigroup Inc. started coverage on Nucor Corp. in a research note on Monday, August 22nd. They issued a “neutral” rating and a $55.00 target price for the company. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $52.99.
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Shares of Nucor Corp. (NYSE:NUE) traded up 0.75% during midday trading on Tuesday, reaching $47.15. The company had a trading volume of 3,142,358 shares. The firm has a market cap of $15.01 billion, a P/E ratio of 32.32 and a beta of 1.47. The company’s 50-day moving average is $47.86 and its 200-day moving average is $49.61. Nucor Corp. has a 52-week low of $33.90 and a 52-week high of $57.08.
Nucor Corp. (NYSE:NUE) last released its quarterly earnings results on Thursday, July 21st. The company reported $0.73 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.03. Nucor Corp. had a return on equity of 8.58% and a net margin of 3.00%. The firm earned $4.25 billion during the quarter, compared to analysts’ expectations of $4.49 billion. Equities research analysts expect that Nucor Corp. will post $2.67 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, November 10th. Investors of record on Friday, September 30th will be given a $0.375 dividend. This represents a $1.50 dividend on an annualized basis and a dividend yield of 3.18%. The ex-dividend date of this dividend is Wednesday, September 28th. Nucor Corp.’s dividend payout ratio is currently 102.04%.
In related news, Chairman John J. Ferriola sold 12,128 shares of Nucor Corp. stock in a transaction dated Wednesday, July 27th. The stock was sold at an average price of $54.12, for a total value of $656,367.36. Following the sale, the chairman now owns 354,420 shares of the company’s stock, valued at $19,181,210.40. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO James D. Frias sold 9,000 shares of Nucor Corp. stock in a transaction dated Thursday, July 28th. The shares were sold at an average price of $53.14, for a total value of $478,260.00. Following the completion of the sale, the chief financial officer now directly owns 156,065 shares in the company, valued at approximately $8,293,294.10. The disclosure for this sale can be found here. 0.63% of the stock is owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in the stock. Capital Investment Advisors LLC bought a new stake in Nucor Corp. during the third quarter worth about $206,000. First Financial Corp IN increased its stake in Nucor Corp. by 22.5% in the third quarter. First Financial Corp IN now owns 11,903 shares of the company’s stock worth $588,000 after buying an additional 2,183 shares in the last quarter. Farmers Trust Co. increased its stake in Nucor Corp. by 32.1% in the third quarter. Farmers Trust Co. now owns 110,247 shares of the company’s stock worth $5,452,000 after buying an additional 26,806 shares in the last quarter. Charter Trust Co. increased its stake in Nucor Corp. by 0.8% in the third quarter. Charter Trust Co. now owns 18,466 shares of the company’s stock worth $913,000 after buying an additional 140 shares in the last quarter. Finally, National Pension Service increased its stake in Nucor Corp. by 9.4% in the third quarter. National Pension Service now owns 235,768 shares of the company’s stock worth $11,659,000 after buying an additional 20,354 shares in the last quarter. 77.95% of the stock is currently owned by institutional investors and hedge funds.
About Nucor Corp.
Nucor Corporation (Nucor) manufactures steel and steel products. The Company also produces direct reduced iron (DRI) for use in the Company’s steel mills. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI. Nucor operates in three segments: steel mills, steel products and raw materials.
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