Nucor (NYSE:NUE) Shares Gap Down Following Weak Earnings

Nucor Co. (NYSE:NUE) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $191.63, but opened at $177.70. Nucor shares last traded at $180.77, with a volume of 1,024,329 shares changing hands.

The basic materials company reported $3.46 earnings per share for the quarter, missing analysts’ consensus estimates of $3.62 by ($0.16). The business had revenue of $8.14 billion during the quarter, compared to analysts’ expectations of $8.26 billion. Nucor had a net margin of 12.40% and a return on equity of 19.67%. The company’s revenue for the quarter was down 6.6% compared to the same quarter last year. During the same period last year, the business posted $4.45 earnings per share.

Nucor Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 10th. Shareholders of record on Thursday, March 28th will be paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 1.25%. The ex-dividend date of this dividend is Wednesday, March 27th. Nucor’s payout ratio is 12.71%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. StockNews.com lowered shares of Nucor from a “buy” rating to a “hold” rating in a research note on Tuesday. JPMorgan Chase & Co. dropped their price target on Nucor from $195.00 to $190.00 and set a “neutral” rating on the stock in a research note on Wednesday. Citigroup upgraded Nucor from a “neutral” rating to a “buy” rating and upped their target price for the company from $180.00 to $240.00 in a research report on Wednesday, March 13th. UBS Group began coverage on Nucor in a research report on Tuesday, January 16th. They issued a “buy” rating and a $210.00 target price on the stock. Finally, BMO Capital Markets lowered their price objective on Nucor from $210.00 to $200.00 and set a “market perform” rating on the stock in a research report on Wednesday. Five equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $193.14.

Insider Buying and Selling at Nucor

In other Nucor news, insider Michael D. Keller sold 3,145 shares of the stock in a transaction dated Thursday, March 21st. The stock was sold at an average price of $193.67, for a total value of $609,092.15. Following the sale, the insider now owns 24,873 shares of the company’s stock, valued at approximately $4,817,153.91. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, insider Michael D. Keller sold 3,145 shares of the firm’s stock in a transaction dated Thursday, March 21st. The stock was sold at an average price of $193.67, for a total transaction of $609,092.15. Following the sale, the insider now owns 24,873 shares of the company’s stock, valued at approximately $4,817,153.91. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Douglas J. Jellison sold 19,506 shares of Nucor stock in a transaction that occurred on Thursday, March 21st. The stock was sold at an average price of $193.41, for a total value of $3,772,655.46. Following the transaction, the executive vice president now directly owns 120,738 shares in the company, valued at approximately $23,351,936.58. The disclosure for this sale can be found here. Insiders have sold 38,151 shares of company stock valued at $7,308,683 in the last quarter. Corporate insiders own 0.64% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of NUE. Criterion Capital Advisors LLC acquired a new position in shares of Nucor in the fourth quarter valued at approximately $25,000. Rise Advisors LLC acquired a new position in Nucor during the first quarter worth $27,000. Tompkins Financial Corp grew its holdings in Nucor by 208.0% during the first quarter. Tompkins Financial Corp now owns 154 shares of the basic materials company’s stock worth $30,000 after acquiring an additional 104 shares during the period. Fortitude Family Office LLC grew its holdings in Nucor by 54.1% during the first quarter. Fortitude Family Office LLC now owns 168 shares of the basic materials company’s stock worth $33,000 after acquiring an additional 59 shares during the period. Finally, Valley National Advisers Inc. grew its holdings in Nucor by 716.7% during the fourth quarter. Valley National Advisers Inc. now owns 196 shares of the basic materials company’s stock worth $34,000 after acquiring an additional 172 shares during the period. Institutional investors and hedge funds own 76.48% of the company’s stock.

Nucor Price Performance

The stock has a fifty day moving average of $191.04 and a two-hundred day moving average of $174.17. The stock has a market cap of $41.46 billion, a price-to-earnings ratio of 10.16 and a beta of 1.61. The company has a quick ratio of 2.35, a current ratio of 3.57 and a debt-to-equity ratio of 0.30.

Nucor Company Profile

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.