Traders Purchase Large Volume of Nucor Call Options (NYSE:NUE)

Nucor Co. (NYSE:NUE) was the target of unusually large options trading activity on Tuesday. Traders acquired 10,677 call options on the company. This is an increase of approximately 23% compared to the typical daily volume of 8,660 call options.

Nucor Stock Performance

Shares of NUE stock opened at $126.88 on Thursday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.61 and a current ratio of 2.59. Nucor has a fifty-two week low of $112.25 and a fifty-two week high of $203.00. The company has a market capitalization of $29.79 billion, a P/E ratio of 12.26 and a beta of 1.60. The stock has a 50 day moving average price of $129.79 and a two-hundred day moving average price of $142.83.

Nucor (NYSE:NUE) last released its quarterly earnings data on Monday, January 27th. The basic materials company reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.28. Nucor had a net margin of 8.05% and a return on equity of 12.06%. During the same period in the previous year, the business earned $3.16 EPS. Analysts expect that Nucor will post 8.18 earnings per share for the current year.

Nucor Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 11th. Shareholders of record on Tuesday, December 31st will be issued a $0.55 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $2.20 annualized dividend and a yield of 1.73%. This is a boost from Nucor’s previous quarterly dividend of $0.54. Nucor’s dividend payout ratio (DPR) is 21.26%.

Analysts Set New Price Targets

Several research firms have recently weighed in on NUE. UBS Group restated a “neutral” rating and set a $156.00 price objective (down previously from $171.00) on shares of Nucor in a research report on Thursday, December 12th. Morgan Stanley lowered their price target on Nucor from $170.00 to $166.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 23rd. The Goldman Sachs Group assumed coverage on Nucor in a research note on Monday, December 2nd. They set a “buy” rating and a $190.00 price target for the company. Citigroup reduced their price objective on Nucor from $240.00 to $160.00 and set a “buy” rating on the stock in a research report on Thursday, December 19th. Finally, Jefferies Financial Group boosted their target price on Nucor from $125.00 to $135.00 and gave the stock a “hold” rating in a research report on Wednesday. Four equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $164.63.

Insider Buying and Selling

In other Nucor news, EVP Allen C. Behr sold 4,968 shares of the company’s stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $159.72, for a total value of $793,488.96. Following the transaction, the executive vice president now directly owns 85,376 shares in the company, valued at $13,636,254.72. This represents a 5.50 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Stephen D. Laxton sold 4,712 shares of Nucor stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $169.53, for a total value of $798,825.36. Following the sale, the chief financial officer now owns 82,132 shares of the company’s stock, valued at approximately $13,923,837.96. This trade represents a 5.43 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 20,680 shares of company stock valued at $3,452,524. Company insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Nucor

Hedge funds have recently made changes to their positions in the business. Vontobel Holding Ltd. lifted its stake in Nucor by 12.5% in the fourth quarter. Vontobel Holding Ltd. now owns 9,013 shares of the basic materials company’s stock worth $1,052,000 after acquiring an additional 1,001 shares during the period. Howard Bailey Securities LLC purchased a new stake in shares of Nucor in the 4th quarter worth about $842,000. Park Capital Management LLC WI bought a new stake in shares of Nucor during the 4th quarter valued at about $202,000. Grace & White Inc. NY increased its position in shares of Nucor by 12.0% during the fourth quarter. Grace & White Inc. NY now owns 122,339 shares of the basic materials company’s stock valued at $14,278,000 after buying an additional 13,100 shares during the period. Finally, Stiles Financial Services Inc raised its stake in Nucor by 19.7% in the fourth quarter. Stiles Financial Services Inc now owns 4,376 shares of the basic materials company’s stock worth $511,000 after buying an additional 721 shares in the last quarter. 76.48% of the stock is owned by hedge funds and other institutional investors.

About Nucor

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.