Sowell Cuts 75.4% Nucor Stake to 2,105 Shares; Braun Stacey Adds 4,888 Shares
Sowell Financial reduced its Nucor position by 75.4% to 2,105 shares valued at $285,000 in Q3 after selling 6,461 shares. Meanwhile, Braun Stacey Associates increased its holdings by 3.6% (4,888 shares), bringing its stake to 139,082 shares worth $18.8 million.
1. Major Institutional Stake Shifts
In the third quarter, Sowell Financial Services LLC slashed its position in Nucor Corporation by 75.4%, disposing of 6,461 shares and reducing its total holdings to 2,105 shares, valued at approximately $285,000. Other funds adjusted their stakes as well: Hudson Capital Management LLC boosted its position by 6.6% to 34,784 shares; Robeco Institutional Asset Management B.V. expanded its holdings by 138.5% to 121,543 shares; and Busey Bank increased its stake by 40.1% to 111,938 shares. New entrants included Fidelis Capital Partners LLC and Oppenheimer Asset Management Inc., which established positions valued at $236,000 and $5.225 million respectively. Institutional and hedge fund ownership now accounts for roughly 76.5% of the company’s outstanding shares.
2. Analyst Ratings and Price Targets Revised Upward
Following the company’s stronger-than-expected third-quarter results, several Wall Street firms raised their forecasts for Nucor. Goldman Sachs raised its target from $173 to $182 and maintained a Buy rating, while BNP Paribas Exane lifted its objective from $165 to $185 with an Outperform recommendation. BMO Capital Markets reaffirmed its Outperform view, and Morgan Stanley upgraded Nucor to Overweight after increasing its target. One firm trimmed its stance to Hold, but overall consensus from ten analysts remains a Moderate Buy with an average price target near $174.
3. Strong Q3 Earnings, Revenue Growth and Dividend Hike
Nucor reported third-quarter earnings of $2.63 per share, beating consensus by $0.33, on revenues of $8.52 billion, a 14.5% year-over-year increase. Return on equity stood at 7.8% with a net margin of 5.2%. The company reaffirmed fourth-quarter EPS guidance of –2.63 and continues to project full-year earnings of 7.64 per share. In December, the board approved a quarterly dividend of $0.56 per share, up from $0.55, marking an annualized yield of approximately 1.3% and a payout ratio near 31.5%.
4. Insider Sell-Offs and Ownership Trends
Senior executives collectively sold 25,995 shares during the latest quarter, including 7,000 shares by EVP John J. Hollatz and 2,003 shares by CFO Stephen D. Laxton, representing decreases in their personal stakes. These transactions, disclosed in SEC filings, totaled nearly $4.0 million. Despite these sales, insiders retain about 0.46% ownership of Nucor’s outstanding stock, consistent with historical levels of insider alignment with shareholder interests.