Gerdau (NYSE:GGB) Shares Gap Up – Should You Buy?

Gerdau S.A. (NYSE:GGB)’s share price gapped up prior to trading on Monday . The stock had previously closed at $2.63, but opened at $2.81. Gerdau shares last traded at $2.81, with a volume of 1,551,109 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. UBS Group lowered their price objective on Gerdau from $3.30 to $2.90 and set a “neutral” rating on the stock in a research note on Wednesday, April 30th. Bank of America restated a “neutral” rating on shares of Gerdau in a research report on Monday, April 7th.

Gerdau Stock Performance

The stock has a market cap of $5.79 billion, a PE ratio of 6.48 and a beta of 1.43. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.98 and a quick ratio of 1.53. The business has a 50 day moving average price of $2.66 and a two-hundred day moving average price of $2.91.

Gerdau Increases Dividend

The firm also recently declared a dividend, which was paid on Tuesday, May 27th. Investors of record on Tuesday, May 13th were paid a $0.0188 dividend. This is a positive change from Gerdau’s previous dividend of $0.00. The ex-dividend date was Monday, May 12th. This represents a yield of 2.95%. Gerdau’s dividend payout ratio (DPR) is presently 24.14%.

Hedge Funds Weigh In On Gerdau

Several institutional investors and hedge funds have recently modified their holdings of the stock. Private Advisor Group LLC bought a new stake in Gerdau in the 4th quarter worth about $32,000. Wealthfront Advisers LLC purchased a new position in Gerdau in the 4th quarter worth approximately $32,000. R Squared Ltd purchased a new position in Gerdau in the 4th quarter worth approximately $36,000. Wolverine Trading LLC purchased a new position in Gerdau in the 4th quarter worth approximately $37,000. Finally, Carrera Capital Advisors purchased a new position in Gerdau in the 4th quarter worth approximately $40,000. 1.49% of the stock is currently owned by institutional investors.

Gerdau Company Profile

Gerdau SA, together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.