Nucor (NYSE:NUE) Rating Increased to Buy at UBS Group

Nucor (NYSE:NUE) was upgraded by investment analysts at UBS Group from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Thursday. The brokerage currently has a $190.00 target price on the basic materials company’s stock. UBS Group’s target price suggests a potential upside of 15.22% from the company’s current price.

NUE has been the subject of several other research reports. Weiss Ratings reissued a “hold (c)” rating on shares of Nucor in a research report on Monday, December 29th. KeyCorp started coverage on shares of Nucor in a report on Wednesday. They set a “sector weight” rating for the company. Wall Street Zen downgraded shares of Nucor from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Morgan Stanley restated an “equal weight” rating and issued a $180.00 target price (up from $165.00) on shares of Nucor in a report on Friday, January 9th. Finally, BNP Paribas Exane raised their price target on shares of Nucor from $165.00 to $185.00 and gave the company an “outperform” rating in a research report on Friday, January 2nd. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Nucor presently has an average rating of “Moderate Buy” and an average target price of $188.90.

Nucor Stock Performance

Shares of NUE opened at $164.91 on Thursday. The stock has a 50-day moving average of $176.26 and a 200-day moving average of $159.31. Nucor has a one year low of $97.59 and a one year high of $196.90. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.94 and a quick ratio of 1.57. The company has a market cap of $37.56 billion, a PE ratio of 21.87, a P/E/G ratio of 0.58 and a beta of 1.83.

Nucor (NYSE:NUE) last announced its quarterly earnings results on Monday, January 26th. The basic materials company reported $1.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.91 by ($0.18). The firm had revenue of $7.69 billion during the quarter, compared to the consensus estimate of $7.93 billion. Nucor had a return on equity of 8.26% and a net margin of 5.37%.The firm’s revenue was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.22 EPS. On average, equities research analysts predict that Nucor will post 7.64 EPS for the current fiscal year.

Nucor announced that its Board of Directors has approved a share buyback program on Friday, February 20th that allows the company to buyback $4.00 billion in outstanding shares. This buyback authorization allows the basic materials company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Kenneth Rex Query sold 7,452 shares of the business’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $196.02, for a total value of $1,460,741.04. Following the transaction, the executive vice president directly owned 76,628 shares of the company’s stock, valued at approximately $15,020,620.56. The trade was a 8.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Daniel R. Needham sold 3,881 shares of the stock in a transaction dated Friday, January 30th. The shares were sold at an average price of $178.00, for a total transaction of $690,818.00. Following the transaction, the executive vice president owned 88,298 shares of the company’s stock, valued at approximately $15,717,044. The trade was a 4.21% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 26,401 shares of company stock valued at $4,936,152. Insiders own 0.46% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in shares of Nucor by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 28,407,540 shares of the basic materials company’s stock worth $4,633,554,000 after purchasing an additional 144,038 shares during the period. State Street Corp increased its position in Nucor by 3.1% in the second quarter. State Street Corp now owns 12,501,779 shares of the basic materials company’s stock worth $1,626,321,000 after buying an additional 371,911 shares during the last quarter. Berkshire Hathaway Inc bought a new stake in shares of Nucor in the second quarter valued at $856,792,000. Morgan Stanley raised its stake in shares of Nucor by 1.1% in the fourth quarter. Morgan Stanley now owns 3,853,205 shares of the basic materials company’s stock valued at $628,497,000 after buying an additional 41,728 shares during the period. Finally, Norges Bank purchased a new position in shares of Nucor during the 4th quarter valued at $609,002,000. 76.48% of the stock is currently owned by hedge funds and other institutional investors.

Nucor Company Profile

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.