Nucor (NYSE:NUE) to Repurchase $4.00 billion in Outstanding Shares

Nucor (NYSE:NUE) declared that its board has approved a stock repurchase program on Friday, February 20th, RTT News reports. The company plans to buyback $4.00 billion in shares. This buyback authorization permits the basic materials company to purchase up to 9.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Nucor Stock Down 0.1%

Shares of NYSE:NUE traded down $0.13 during trading on Friday, hitting $179.91. 2,073,418 shares of the company were exchanged, compared to its average volume of 1,930,118. The firm’s 50 day moving average price is $174.25 and its 200-day moving average price is $155.31. Nucor has a 12-month low of $97.59 and a 12-month high of $196.90. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.94 and a quick ratio of 1.57. The stock has a market capitalization of $41.17 billion, a P/E ratio of 23.86, a PEG ratio of 0.65 and a beta of 1.86.

Nucor (NYSE:NUE) last posted its earnings results on Monday, January 26th. The basic materials company reported $1.73 EPS for the quarter, missing analysts’ consensus estimates of $1.91 by ($0.18). The company had revenue of $7.69 billion during the quarter, compared to analysts’ expectations of $7.93 billion. Nucor had a net margin of 5.37% and a return on equity of 8.26%. The company’s quarterly revenue was up 8.6% on a year-over-year basis. During the same period last year, the business earned $1.22 earnings per share. On average, research analysts predict that Nucor will post 7.64 earnings per share for the current fiscal year.

Nucor Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 11th. Stockholders of record on Tuesday, March 31st will be given a $0.56 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $2.24 annualized dividend and a dividend yield of 1.2%. Nucor’s dividend payout ratio is currently 29.71%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on NUE. JPMorgan Chase & Co. boosted their price objective on Nucor from $175.00 to $200.00 and gave the company an “overweight” rating in a report on Friday, December 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Nucor in a research report on Monday, December 29th. Jefferies Financial Group lifted their price objective on shares of Nucor from $190.00 to $200.00 and gave the company a “buy” rating in a report on Monday, January 12th. Citigroup increased their target price on shares of Nucor from $150.00 to $180.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. Finally, Wells Fargo & Company boosted their price target on shares of Nucor from $176.00 to $184.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. Eight analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Nucor presently has a consensus rating of “Moderate Buy” and a consensus target price of $179.36.

Insider Buying and Selling

In related news, EVP Kenneth Rex Query sold 7,452 shares of the company’s stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $196.02, for a total transaction of $1,460,741.04. Following the transaction, the executive vice president owned 76,628 shares of the company’s stock, valued at approximately $15,020,620.56. This represents a 8.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Daniel R. Needham sold 3,881 shares of the firm’s stock in a transaction dated Friday, January 30th. The stock was sold at an average price of $178.00, for a total value of $690,818.00. Following the completion of the sale, the executive vice president directly owned 88,298 shares in the company, valued at approximately $15,717,044. The trade was a 4.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 34,351 shares of company stock worth $6,206,158. 0.46% of the stock is currently owned by corporate insiders.

About Nucor

Nucor Corporation (NYSE: NUE) is an American steel producer headquartered in Charlotte, North Carolina. The company is primarily engaged in the manufacture and sale of steel and steel products, operating a network of steel mills, recycling facilities and fabrication plants across the United States and North America. Nucor’s operations emphasize electric arc furnace steelmaking using recycled scrap metal, which supports a decentralized, mill-based production model focused on efficiency and flexibility.

Product offerings span a broad range of basic and value‑added steel items, including sheet, plate, merchant bar, structural beams, reinforcing bar, tubing, fasteners and fabricated components.