Nucor To Buy Back $3B In Stock; Shares Pop 5%
Nucor Corp. (NUE) announced a stock repurchase program of up to $3 billion. Following the announcement, shares of the steel producer rose 5% on May 13 to close at $100.80.
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada, and Mexico. This new program, which has no expiration date, replaces the earlier-authorized stock buyback program worth $2 billion. Approximately $1.55 billion of the stock had already been repurchased under the company’s old program.
Under the new repurchase program, share repurchases are expected to be made in the open market at the prevailing market price or even through private transactions or block trades.
On April 22, Nucor reported Q1 results. Earnings of $3.10 per share outpaced the Street’s estimates of $3.09. However, total revenues of $7.02 billion missed consensus estimates of $7.19 billion. (See Nucor Corp stock analysis on TipRanks)
Following the Q1 results, BMO Capital analyst David Gagliano maintained the stock’s price target of $86 (14.7% downside potential) and a Hold rating.
Gagliano said, “Nucor is positioned to capitalize on incremental volume growth, while continuing to fund its upcoming growth investments with internal cash generation.”
Consensus on the Street is that Nucor Corp. is a Moderate Buy based on 3 Buys and 3 Holds. The average analyst price target of $93.33 implies downside potential of 7.4% to current levels. Shares have climbed 85.6% over the past six months.
Alaska Air Expanding Fleet With 30 Mainline And Regional Aircraft
HEXO Teams Up With REQ On Brand Expansion In U.S.
XPeng’s Quarterly Revenue Jumps 6X, Vehicle Deliveries Up Almost 5X