Gerdau S.A. (NYSE:GGB) Short Interest Down 81.9% in February

Gerdau S.A. (NYSE:GGB) was the target of a large drop in short interest in February. As of February 13th, there was short interest totaling 4,754,991 shares, a drop of 81.9% from the January 29th total of 26,236,663 shares. Currently, 0.2% of the company’s stock are sold short. Based on an average daily volume of 36,541,488 shares, the days-to-cover ratio is currently 0.1 days. Based on an average daily volume of 36,541,488 shares, the days-to-cover ratio is currently 0.1 days. Currently, 0.2% of the company’s stock are sold short.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on GGB shares. Zacks Research raised shares of Gerdau from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 18th. UBS Group reaffirmed a “buy” rating and issued a $4.60 price target (up from $4.00) on shares of Gerdau in a research report on Monday, December 15th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research note on Monday, December 29th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $4.60.

Gerdau Stock Performance

NYSE:GGB traded up $0.09 during midday trading on Wednesday, reaching $4.16. The stock had a trading volume of 19,584,732 shares, compared to its average volume of 25,699,828. The stock has a market capitalization of $8.30 billion, a P/E ratio of 34.63, a PEG ratio of 1.15 and a beta of 1.46. Gerdau has a 1-year low of $2.27 and a 1-year high of $4.66. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.89 and a quick ratio of 1.47. The firm’s fifty day simple moving average is $4.08 and its 200-day simple moving average is $3.57.

Gerdau (NYSE:GGB) last released its earnings results on Monday, February 23rd. The basic materials company reported $0.07 earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.04). The firm had revenue of $3.08 billion for the quarter, compared to analyst estimates of $3.12 billion. Gerdau had a return on equity of 6.20% and a net margin of 1.93%. On average, equities research analysts forecast that Gerdau will post 0.46 EPS for the current fiscal year.

Gerdau Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Thursday, March 12th will be paid a dividend of $0.0194 per share. The ex-dividend date is Thursday, March 12th. This represents a $0.08 annualized dividend and a yield of 1.9%. Gerdau’s dividend payout ratio is presently 166.67%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Robeco Institutional Asset Management B.V. grew its stake in shares of Gerdau by 314.9% in the third quarter. Robeco Institutional Asset Management B.V. now owns 262,341 shares of the basic materials company’s stock worth $813,000 after acquiring an additional 199,115 shares during the last quarter. Kapitalo Investimentos Ltda acquired a new position in Gerdau during the 3rd quarter valued at $5,958,000. Donald Smith & CO. Inc. bought a new stake in Gerdau in the 2nd quarter valued at $17,440,000. GSA Capital Partners LLP bought a new stake in Gerdau in the 3rd quarter valued at $981,000. Finally, Optiver Holding B.V. grew its position in Gerdau by 47.6% in the 3rd quarter. Optiver Holding B.V. now owns 5,435,331 shares of the basic materials company’s stock worth $16,850,000 after purchasing an additional 1,752,282 shares during the last quarter. 1.49% of the stock is owned by institutional investors.

Gerdau Company Profile

Gerdau SA is a Brazilian-based steel producer engaged in the manufacture and distribution of long steel products for the construction, industrial and agricultural sectors. Established in 1901, the company operates an integrated network of electric-arc furnaces and rolling mills, producing reinforcement bars, wire rod, merchant bars and structural shapes. Gerdau’s product portfolio also includes specialty long steel, high-yield reinforcement, rail, beams and steel coils, as well as value-added processing services such as cutting, bending and coating.

The company has expanded its footprint beyond Brazil, with significant operations in North America, South America and a presence in select European markets.