Nucor Corp. (NUE) Stock Moves Down and Here’s Why

Nucor Corp. (NYSE: NUE) shares rose on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Shares of Nucor Corp. (NYSE: NUE) were downgraded by analysts at Vetr Inc. in a note to their investors today. Vetr Inc. currently has a rating of Strong Sell on the shares. A number of other analysts have issued reports on the company in recent days, and Nucor Corp. has secured a consensus one-year price target of $56.38, lower than the opening price of $64.03. Nucor Corp. stock has a 52-week high of $65.15. Downgrades happen when analysts consider that the future prospects for the security have weakened from the original recommendation, often due to a material and crucial change in the company’s actions, future vision or industry.

Nucor Corp. (NYSE: NUE) shares last traded at $64.26, which represents an increase of $1.23 or 1.95% from the previous closing price. Opening at $64.03, they fluctuated from $63.96 and $65.15 throughout the day.

Nucor Corp. (NYSE: NUE) now has a market cap of 20.47B.

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

The stock’s average daily volume is 3,133,650 shares out of a total float 317,529,000 and some 472,039 shares crossed the trading desk yesterday, lower than normal. Investors often use increases in trading volume to identify substantial volume growth or dissemination by institutional investors, so look for trading volume to pick up in the coming days.

While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors retain teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure 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.

Traders are able to make make more impactful choices on trades when they follow the activity of professional investors.

With that in mind, Nucor Corp. (NYSE: NUE) now has a 50-day MA of $54.27 and 200-day MA of $51.08. It has traded in a 52-week range between $33.90 – 65.15 and today’s last price is 1.37%% lower than the 52 week high of $65.15.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over 3 consecutive years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *