Nucor (NYSE:NUE) Trading Down 7.2% – Here’s Why

Nucor Co. (NYSE:NUE)’s share price dropped 7.2% on Tuesday . The stock traded as low as $144.57 and last traded at $144.85. Approximately 890,201 shares changed hands during trading, a decline of 39% from the average daily volume of 1,468,526 shares. The stock had previously closed at $156.11.

Analysts Set New Price Targets

NUE has been the subject of several research reports. BMO Capital Markets cut their target price on shares of Nucor from $175.00 to $160.00 and set a “market perform” rating for the company in a research report on Wednesday, September 18th. Morgan Stanley reduced their price objective on Nucor from $176.00 to $170.00 and set an “overweight” rating on the stock in a research note on Wednesday, September 18th. Bank of America lowered their target price on Nucor from $210.00 to $200.00 and set a “buy” rating for the company in a research note on Wednesday, June 26th. Argus upgraded shares of Nucor to a “strong-buy” rating in a report on Monday, August 26th. Finally, JPMorgan Chase & Co. cut their price objective on Nucor from $174.00 to $170.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 9th. Three investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $191.43.

Nucor Price Performance

The firm has a 50-day simple moving average of $147.74 and a 200-day simple moving average of $159.90. The firm has a market capitalization of $35.41 billion, a PE ratio of 8.52 and a beta of 1.55. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.93 and a quick ratio of 1.85.

Nucor (NYSE:NUE) last posted its quarterly earnings data on Monday, October 21st. The basic materials company reported $1.49 EPS for the quarter, topping the consensus estimate of $1.40 by $0.09. Nucor had a return on equity of 15.69% and a net margin of 10.45%. The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.28 billion. During the same period in the prior year, the business posted $4.57 EPS. Nucor’s revenue was down 15.2% on a year-over-year basis. As a group, equities analysts forecast that Nucor Co. will post 9.08 earnings per share for the current year.

Nucor Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 8th. Investors of record on Friday, September 27th will be issued a $0.54 dividend. This represents a $2.16 annualized dividend and a yield of 1.46%. The ex-dividend date is Friday, September 27th. Nucor’s dividend payout ratio is 12.71%.

Insiders Place Their Bets

In related news, EVP Daniel R. Needham sold 8,624 shares of the company’s stock in a transaction on Wednesday, July 31st. The shares were sold at an average price of $160.00, for a total value of $1,379,840.00. Following the completion of the transaction, the executive vice president now owns 99,049 shares of the company’s stock, valued at approximately $15,847,840. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 0.46% of the stock is owned by company insiders.

Institutional Trading of Nucor

A number of large investors have recently added to or reduced their stakes in NUE. McClarren Financial Advisors Inc. raised its position in Nucor by 129.0% during the second quarter. McClarren Financial Advisors Inc. now owns 158 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 89 shares during the period. Chilton Capital Management LLC boosted its stake in Nucor by 94.2% during the first quarter. Chilton Capital Management LLC now owns 134 shares of the basic materials company’s stock worth $27,000 after buying an additional 65 shares during the period. Central Pacific Bank Trust Division purchased a new stake in shares of Nucor in the first quarter valued at $28,000. Brown Lisle Cummings Inc. bought a new stake in shares of Nucor in the 3rd quarter worth about $30,000. Finally, Salomon & Ludwin LLC bought a new position in Nucor during the 1st quarter valued at about $31,000. Institutional investors own 76.48% of the company’s stock.

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.