In recent news, Procyon Advisors LLC has increased its stake in Nucor Co. (NYSE:NUE) by 25.7% during the second quarter of this year. According to the Form 13F filing with the SEC, the institutional investor now owns 19,047 shares of Nucor’s stock after purchasing an additional 3,896 shares during this period. The total value of Procyon Advisors LLC’s holdings in Nucor is estimated to be around $3,123,000 at the end of the most recent reporting period.
This development comes after Nucor released its quarterly earnings data on July 24th. The company reported an impressive $5.81 EPS for the quarter, surpassing analysts’ consensus estimates of $5.59 by $0.22. With a return on equity of 28.00% and a net margin of 14.81%, Nucor demonstrated strong financial performance during this period. However, it is worth noting that the company’s quarterly revenue was down 19.3% in comparison to the same quarter last year.
Various research analysts have provided their insights regarding Nucor’s stock and performance as well. Citigroup raised their price objective on Nucor from $160.00 to $180.00 and maintained a “neutral” rating in a research note released on July 27th. Another research note from Wolfe Research upgraded Nucor from an “underperform” rating to a “peer perform” rating back on June 1st.
Credit Suisse Group also upped their target price on Nucor from $156.00 to $167.00 in a report issued on July 11th, while JPMorgan Chase & Co., on September 8th, increased their target price from $150.00 to $151 and gave the company an “underweight” rating.
Additionally, BNP Paribas upgraded Nucor’s rating from “neutral” to “outperform,” accompanied by a $191.00 price objective, in their research report released on July 5th. However, it is noteworthy that one equities research analyst has issued a sell rating for the stock, while seven analysts have assigned a hold rating and three have given a buy rating to Nucor. According to Bloomberg data, the company currently has an average rating of “hold” and a consensus price target of $161.00.
As of September 24th, these are the latest developments and evaluations surrounding Nucor Co.’s stake increase by Procyon Advisors LLC and the analysis provided by various research analysts. It will be intriguing to see how these recent factors influence Nucor’s performance and stock value in the coming months.
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Hedge Funds and Institutional Investors Show Confidence in Nucor’s Potential, While Analysts Remain Divided
Nucor Co., a leading provider of basic materials, has seen recent activity by hedge funds and other institutional investors. Companies such as Resources Investment Advisors LLC, Johnson Financial Group Inc., Schechter Investment Advisors LLC, Parallel Advisors LLC, and Commerce Bank have all made significant purchases of Nucor shares in the last quarter.
Resources Investment Advisors LLC reported a 26.1% increase in their position in Nucor during the first quarter. They now own 9,657 shares of the company’s stock, valued at approximately $1,492,000. Johnson Financial Group Inc. lifted its stake by 4.0%, bringing their total to 9,137 shares with a value of $1,413,000. Similarly, Schechter Investment Advisors LLC increased their holdings by 6.0%, now owning 2,004 shares worth $264,000. Parallel Advisors LLC and Commerce Bank also added to their positions in Nucor.
These actions taken by hedge funds and institutional investors highlight their confidence in Nucor’s potential for growth and profitability. As these industry experts continue to invest in Nucor’s stock, it indicates a positive outlook for the company’s performance.
In terms of trading activity on the New York Stock Exchange (NYSE), NUCOR shares traded up $1.59 on Friday to reach $153.13 per share. This is within the range of its fifty-two week low of $102.86 and its fifty-two week high of $182.68.
Analysts have been closely monitoring NUCOR stock and have provided insights into its value and performance outlook. Citigroup raised their price target from $160 to $180 while maintaining a “neutral” rating on the stock back in July 2023. Wolfe Research upgraded NUCOR from an “underperform” to a “peer perform” rating earlier in June 2023.
Credit Suisse Group also raised its target price from $156 to $167 in July. On the other hand, JPMorgan Chase & Co. was less optimistic, raising their target price from $150 to $151 and denoting the stock as “underweight” in September.
However, BNP Paribas had a more favorable stance on Nucor, upgrading it from “neutral” to “outperform,” with a price objective of $191 in July. According to Bloomberg data, NUCOR currently has an average rating of “Hold” with a consensus price target of $161.
In addition to trading and analyst activity, Nucor recently announced that it will be paying a quarterly dividend on November 9th. The dividend payout of $0.51 per share equates to an annualized dividend of $2.04 and a yield of 1.33%. Shareholders who are recorded on September 29th will receive this dividend. The company’s current dividend payout ratio (DPR) stands at 9.42%.
Underpinning this financial news is the recent selling activity by Nucor’s CEO Leon J. Topalian and CFO Stephen D. Laxton. Topalian sold 27,359 shares on July 27th for an average price of $168.19 per share, totaling approximately $4,601,510.21 in transaction value.
On the same date, Laxton sold 12,765 shares at an average price of $171.46 per share for a total transaction value of around $2,188,686.90.
These recent sales by top executives raise questions about their outlook on the company’s future performance and suggest some level of caution despite positive investor sentiment.
Overall, while hedge funds and institutional investors have increased their stakes in Nucor stock recently indicating faith in the company’s prospects for growth potential and profitability; analysts’ ratings are mixed concerning future performance, indicating a degree of uncertainty. With the company’s CEO and CFO also reducing their holdings, it remains to be seen how these factors will play out in the near future.
