Hennessy Advisors Inc., a leading institutional investor, has recently reduced its stake in shares of Nucor Co. by 5.9% in the fourth quarter of the financial year, according to its recent filing with the Securities & Exchange Commission (SEC). The firm had earlier owned 20,800 shares of the basic materials company’s stock but it sold off 1,300 shares during the quarter, leaving it with $2,742,000 worth of holdings at the end of the reporting period.
The news follows closely on the heels of Nucor’s announcement that it will pay a quarterly dividend to investors on May 11th. Investors who held stocks as on March 31st were given a dividend payout ratio of $0.51 per share. The ex-dividend date for this announcement was March 30th and investors can expect an annualized dividend yield of $2.04 per share which equates to a dividend yield of approximately 1.35%. With a current payout ratio around 7.10%, investors have reason to feel optimistic about their investment in Nucor.
In addition to these announcements, two top executives at Nucor were recently involved in insider trading when they respectively sold off their personal holdings in significant numbers over February and March this year. EVP Allen C Behr completed two separate transactions; one involving the sale of 2,613 shares that raised $438,984 and another for which details are yet unknown but which precedes his sell-off behavior; aimed at raising cash by liquidating his holding directly into a high-value transaction. His counterpart EVP Kenneth Query also executed an identical strategy selling off nearly two thousand shares for almost $350K during February’s uptick.
Insiders continued this trend throughout Q1 bringing total sales up to nearly ten thousand shares worth upwards of $1.6 million dollars as we approach earnings season.
It remains to be seen how these transactions will potentially affect the company’s performance during the next quarter, but such insider selling speaks to the thought process and disposition of the board of directors on which side they believe the pendulum sways concerning future earnings potential.
At present, 0.46% of all outstanding shares are owned by corporate insiders at Nucor, signaling an unwavering commitment to remain diligent in a market that perennially shifts its fortunes towards those who prepare most exhaustively. As always, investors would be well-advised to stay abreast of the latest developments within Nucor Corporation, taking into due consideration safety parameters before putting their hard-earned money into any investment deal or financial derivatives.
Hedge Funds and Analysts Bullish on Nucor Corporation’s Future Growth Potential
Nucor Corporation: Hedge Funds and Analysts Have Confidence
Nucor Corporation (NYSE:NUE) has been garnering the attention of several hedge funds recently. Institutions such as Ronald Blue Trust Inc., Newbridge Financial Services Group Inc., SG Americas Securities LLC, Procyon Advisors LLC, and MML Investors Services LLC have all either added or reduced their stakes in the company. Hedge funds and other institutional investors currently own 78.33% of the firm’s stock.
Several research analysts have also recently commented on NUE shares. StockNews.com started coverage of Nucor in a report on March 16th with a “hold” rating for the company. BMO Capital Markets issued a “market perform” rating and upped their target price from $155 to $165 per share on January 27th. Bank of America initiated coverage on January 4th with a “buy” rating and a $172 target price. The Goldman Sachs Group increased their target price from $144 to $161 per share with a “neutral” rating on March 10th. Finally, UBS Group increased their target price from $120 to $145 per share with another “neutral” rating on December 6th.
Six equities research analysts have rated NUE stock with a hold rating while three have issued a buy rating, according to data from Bloomberg. The stock currently has an average rating of “Hold,” with a consensus target price of $153.44.
The firm also announced its quarterly dividend, which will be paid on May 11th to investors of record as of March 31st. Shareholders will be issued a dividend of $0.51 per share, representing an annualized dividend yield of 1.35%. Nucor’s current dividend payout ratio is at 7.10%.
Shares of NUE stock opened at $151.36 on Friday and the company currently has a market capitalization of $38.13 billion, a P/E ratio of 5.27, and a beta of 1.59. The company’s debt-to-equity ratio is currently at 0.34 with a quick ratio of 2.13 and current ratio of 3.39.
In its latest quarterly earnings report on January 26th, Nucor Corporation announced earnings per share (EPS) of $4.89 for the quarter, beating the consensus estimate of $4.18 by $0.71. The basic materials company had a net margin of 18.33% with revenue amounting to $8.72 billion during the quarter, compared to an estimated $8.54 billion.
Analysts predict that Nucor will post earnings per share of $14.75 for the current year based on its recent growth and investments by institutional investors in the firm’s stock.
Overall, it appears that both hedge funds and analysts are feeling positive about Nucor Corporation’s future performance and potential for growth in the coming years with its strong financials, dividends, and successful EPS results in recent quarters contributing to this sentiment amongst experts in the field.