Gerdau (NYSE:GGB) Shares Gap Down – Time to Sell?

Gerdau S.A. (NYSE:GGB)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $2.90, but opened at $2.81. Gerdau shares last traded at $2.82, with a volume of 304,331 shares.

Wall Street Analysts Forecast Growth

Several research firms recently commented on GGB. Bank of America reiterated a “neutral” rating on shares of Gerdau in a research note on Monday, April 7th. UBS Group upgraded Gerdau from a “neutral” rating to a “buy” rating and boosted their target price for the company from $2.90 to $3.80 in a research note on Monday, June 9th.

Gerdau Stock Performance

The company has a debt-to-equity ratio of 0.24, a current ratio of 2.64 and a quick ratio of 1.28. The firm has a market capitalization of $6.00 billion, a PE ratio of 9.95, a P/E/G ratio of 2.84 and a beta of 1.38. The company’s fifty day simple moving average is $2.78 and its 200 day simple moving average is $2.86.

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 dividend of $0.0188 per share. This is a boost from Gerdau’s previous dividend of $0.00. This represents a dividend yield of 2.95%. The ex-dividend date of this dividend was Monday, May 12th. Gerdau’s dividend payout ratio is presently 27.59%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Wealthfront Advisers LLC bought a new position in shares of Gerdau in the fourth quarter worth $32,000. Private Advisor Group LLC bought a new stake in shares of Gerdau during the 4th quarter valued at $32,000. Wolverine Trading LLC purchased a new stake in Gerdau during the 4th quarter worth about $37,000. Carrera Capital Advisors bought a new position in Gerdau in the 4th quarter worth about $40,000. Finally, Xponance Inc. purchased a new position in Gerdau during the 1st quarter valued at about $40,000. 1.49% of the stock is currently owned by hedge funds and other 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.