Gerdau S.A. (NYSE:GGB) Given Consensus Rating of “Moderate Buy” by Analysts

Gerdau S.A. (NYSE:GGB) has been assigned a consensus rating of “Moderate Buy” from the six ratings firms that are currently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $5.1167.

A number of equities analysts have recently commented on GGB shares. Itau BBA Securities upgraded Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 target price for the company in a report on Wednesday, April 1st. Scotiabank upgraded Gerdau from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 26th. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a report on Friday, March 27th. JPMorgan Chase & Co. lifted their target price on Gerdau from $5.00 to $5.50 and gave the stock an “overweight” rating in a report on Monday, April 13th. Finally, UBS Group reiterated a “buy” rating and issued a $5.25 target price (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th.

Gerdau Price Performance

Shares of Gerdau stock opened at $4.72 on Thursday. The stock has a market cap of $9.43 billion, a price-to-earnings ratio of 29.47 and a beta of 1.51. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.29 and a current ratio of 2.76. The stock has a 50 day moving average price of $4.20 and a 200-day moving average price of $3.98. Gerdau has a one year low of $2.61 and a one year high of $4.98.

Gerdau (NYSE:GGB) last announced its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.05). The company had revenue of $3.22 billion during the quarter, compared to analysts’ expectations of $3.36 billion. Gerdau had a return on equity of 6.76% and a net margin of 2.40%. Equities analysts expect that Gerdau will post 0.51 EPS for the current year.

Gerdau Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Friday, May 15th will be paid a dividend of $0.0361 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 3.1%. This is an increase from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s dividend payout ratio is 75.00%.

Insider Activity

In related news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the firm’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $4.87, for a total transaction of $2,107,998.98. Following the completion of the sale, the chief executive officer directly owned 432,854 shares of the company’s stock, valued at approximately $2,107,998.98. This trade represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $4.60, for a total value of $36,800.00. Following the sale, the insider directly owned 8 shares of the company’s stock, valued at $36.80. This represents a 99.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 836,856 shares of company stock worth $3,782,575 in the last three months. Corporate insiders own 0.02% of the company’s stock.

Institutional Investors Weigh In On Gerdau

Institutional investors and hedge funds have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Gerdau by 68.9% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company’s stock worth $28,000 after acquiring an additional 3,931 shares during the last quarter. Wealthstream Advisors Inc. bought a new stake in shares of Gerdau during the 3rd quarter worth approximately $32,000. EverSource Wealth Advisors LLC lifted its stake in shares of Gerdau by 95.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock worth $31,000 after acquiring an additional 5,216 shares during the last quarter. Greenspring Advisors LLC bought a new stake in shares of Gerdau during the 4th quarter worth approximately $40,000. Finally, Aster Capital Management DIFC Ltd bought a new stake in shares of Gerdau during the 3rd quarter worth approximately $34,000. 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.