Nucor Corp. (NUE) stock down despite upgrade at Berenberg Bank

Nucor Corp. (NYSE: NUE) shares slid back in value Tuesday Dec 6 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks looked for direction on Tuesday with the Dow industrials trying for a fresh record a day after closing at an all-time high in the previous session.

The Dow Jones Industrial Average DJIA, -0.08% opened little-changed at 19,221, the S&P 500 index SPX, -0.01% climbed 2 points, or 0.1%, at 2,206, while the Nasdaq Composite Index COMP, +0.20%

Analysts at Berenberg Bank upgraded shares of Nucor Corp. (NYSE: NUE) from Hold to Buy today. The company currently has a rating of Buy on the shares. As a means of comparison, a number of other analysts have issued reports on the stock recently, and the company has earned a consensus one-year price target of $57.50, less than the opening price of $64.96. Nucor Corp. stock has a 52-week high of $65.43. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.

Nucor Corp. (NYSE: NUE) shares last traded at $64.90, which is a drop of $0.20 per share or -0.31% compared to the previous closing price. Opening at $64.96, they fluctuated from $64.85 and $65.43 throughout the day.

Nucor Corp. (NYSE: NUE) now has a market cap of 20.67B.

Nucor Corp. (NYSE: NUE) Average Daily Trading Volume

383,509 shares traded hands yesterday, lower than normal, out of a total float 317,529,000. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to pinpoint heavy volume growth or dissemination by institutional investors.

However, a single day of heavy buy side trading is not enough to affirm a trend. So market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Nucor Corp. (NYSE: NUE) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By marking the activity of these professional investors—and the moving averages they influence—it allows for traders to make more useful decisions on trades.

With that in mind, Nucor Corp. (NYSE: NUE) now has a 50-day MA of $54.79 and 200-day MA of $51.28. It has traded in a 52-week range between $33.90 – 65.43 and today’s last price is 0.81%% lower than the 52 week high of $65.43.

Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings at least 25% or more for a 3 year period.

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