Nucor Corporation (NUE) Offering Possible 14.94% Return Over the Next 21 Calendar Days

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Nucor Corporation’s most recent trend suggests a bearish bias. One trading opportunity on Nucor Corporation is a Bear Call Spread using a strike $70.00 short call and a strike $75.00 long call offers a potential 14.94% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $70.00 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock rose above the $75.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Nucor Corporation is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Nucor Corporation is bearish.

The RSI indicator is at 73.36 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Nucor Corporation

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A Look Into Nucor’s Debt
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Over the past three months, shares of Nucor (NYSE:NUE) increased by 33.47%. Before having a look at the importance of debt, let us look at how much debt Nucor has. Nucor’s Debt Based on Nucor’s balance sheet as of February 26, 2021, long-term debt is at $5.27 billion and current debt is at $68.79 million, amounting to $5.34 billion in total debt. Adjusted for $2.64 billion in cash-equivalents, the company’s net debt is at $2.70 billion. Let’s define some of the terms we used in the paragraph above. Current debt is the portion of a company’s debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents. Investors look at the debt-ratio to understand how much financial leverage a company has. Nucor has $20.13 billion in total assets, therefore making the debt-ratio 0.27. Generally speaking, a debt-ratio more than one means that a large portion of debt is funded by assets. As the debt-ratio increases, so the does the risk of defaulting on loans, if interest rates were to increase. Different industries have different thresholds of tolerance for debt-ratios. A debt ratio of 40% might be higher for one industry and average for another. Why Investors Look At Debt? Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives. However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Having financial leverage also allows companies to use additional capital for business operations, allowing equity owners to retain excess profit, generated by the debt capital. Looking for stocks with low debt-to-equity ratios? Check out Benzinga Pro, a market research platform which provides investors with near-instantaneous access to dozens of stock metrics – including debt-to-equity ratio. Click here to learn more. See more from BenzingaClick here for options trades from BenzingaBenzinga’s Top Ratings Upgrades, Downgrades For March 19, 2021Insider Sells Nucor’s Shares© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Nucor Signs Second Virtual Power Purchase Agreement for Renewable Energy in Texas
Wed, 24 Mar 2021 13:00:00 +0000
Nucor Corporation (NYSE: NUE) announced today that it has signed a 10-year Virtual Power Purchase Agreement (VPPA) with Ørsted Onshore North America, LLC for 100 megawatts from Ørsted’s Western Trail wind farm (WTW) in North Texas.

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