Zacks Investment Research Downgrades Nucor (NYSE:NUE) to Hold

Nucor (NYSE:NUEGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday, Zacks.com reports. They currently have a $180.00 target price on the basic materials company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 6.16% from the company’s current price.

According to Zacks, “Earnings estimate for Nucor for the first quarter of 2022 have been going down over the past month. The company is committed to expand its production capabilities and grow its business through strategic acquisitions. It is boosting capacity through a number of growth projects. Nucor is also seeing strong momentum in the non-residential construction market. It is also seeing strong demand in the heavy equipment market. The company also remains focused on achieving greater penetration in automotive. Higher steel prices due to tight supply and higher end-market demand should also drive its margins. However, the company faces challenges from higher input costs due to supply constraints and margin headwinds in the steel mill unit. Its high debt level is another concern. The steel industry is also reeling under oversupply.”

Several other analysts have also weighed in on NUE. The Goldman Sachs Group upped their target price on Nucor from $114.00 to $120.00 and gave the company a “neutral” rating in a report on Wednesday, February 16th. StockNews.com initiated coverage on Nucor in a report on Thursday, March 31st. They issued a “buy” rating on the stock. Morgan Stanley upped their target price on Nucor from $107.00 to $108.00 and gave the company an “equal weight” rating in a report on Monday, January 31st. JPMorgan Chase & Co. upped their target price on Nucor from $113.00 to $129.00 and gave the company a “neutral” rating in a report on Thursday, March 24th. Finally, Wolfe Research lowered Nucor from a “peer perform” rating to an “underperform” rating and set a $102.00 target price on the stock. in a report on Tuesday, January 11th. One research analyst has rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $124.25.

NYSE:NUE traded down $2.27 during trading hours on Wednesday, hitting $169.56. The company’s stock had a trading volume of 74,448 shares, compared to its average volume of 3,429,431. The business’s 50-day moving average is $139.78 and its two-hundred day moving average is $119.92. The company has a market capitalization of $45.57 billion, a PE ratio of 7.24 and a beta of 1.33. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.32 and a current ratio of 2.48. Nucor has a 52-week low of $75.60 and a 52-week high of $172.27.

Nucor (NYSE:NUEGet Rating) last released its quarterly earnings data on Thursday, January 27th. The basic materials company reported $7.97 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $7.90 by $0.07. The firm had revenue of $10.36 billion during the quarter, compared to analysts’ expectations of $10.45 billion. Nucor had a return on equity of 51.41% and a net margin of 18.71%. Nucor’s revenue was up 97.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.34 earnings per share. As a group, analysts predict that Nucor will post 20.32 EPS for the current fiscal year.

In other Nucor news, EVP Allen C. Behr sold 3,014 shares of the firm’s stock in a transaction dated Monday, March 21st. The stock was sold at an average price of $143.40, for a total value of $432,207.60. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Michael D. Keller sold 3,600 shares of the firm’s stock in a transaction dated Friday, March 25th. The stock was sold at an average price of $154.58, for a total value of $556,488.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 27,639 shares of company stock worth $4,096,302. 0.46% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Marshall Wace North America L.P. acquired a new stake in Nucor during the 1st quarter worth approximately $54,000. FMR LLC grew its stake in Nucor by 123.0% during the first quarter. FMR LLC now owns 674,154 shares of the basic materials company’s stock worth $39,337,000 after buying an additional 371,876 shares during the period. Center for Financial Planning Inc. purchased a new stake in Nucor during the third quarter worth approximately $79,000. Vontobel Holding Ltd. grew its stake in Nucor by 1.8% during the third quarter. Vontobel Holding Ltd. now owns 8,923 shares of the basic materials company’s stock worth $879,000 after buying an additional 156 shares during the period. Finally, GWM Advisors LLC grew its stake in Nucor by 21.3% during the third quarter. GWM Advisors LLC now owns 13,671 shares of the basic materials company’s stock worth $1,346,000 after buying an additional 2,400 shares during the period. 73.01% of the stock is currently owned by institutional investors and hedge funds.

About Nucor (Get Rating)

Nucor Corporation manufactures and sells steel and steel products. The company's 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 products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products.

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