Gerdau (NYSE:GGB) Stock Price Up 6.5% – Time to Buy?

Gerdau S.A. (NYSE:GGB)’s stock price shot up 6.5% during mid-day trading on Wednesday . The stock traded as high as $4.99 and last traded at $4.9950. 1,273,163 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 17,799,162 shares. The stock had previously closed at $4.69.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on GGB. HSBC cut Gerdau from a “buy” rating to a “hold” rating in a research report on Thursday, August 20th. JPMorgan Chase & Co. increased their price target on Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. The Goldman Sachs Group cut Gerdau to a “neutral” rating in a report on Monday, August 24th. Bank of America lowered Gerdau from a “buy” rating to a “neutral” rating and set a $5.10 price objective on the stock. in a research note on Thursday, August 20th. Finally, Weiss Ratings upgraded Gerdau from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, Gerdau currently has an average rating of “Hold” and an average price target of $5.45.

Gerdau Price Performance

The company has a market capitalization of $9.69 billion, a price-to-earnings ratio of 21.41 and a beta of 1.49. The company has a 50-day moving average price of $4.59 and a 200-day moving average price of $4.33. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.30 and a current ratio of 2.87.

Gerdau (NYSE:GGB) last issued its quarterly earnings data on Tuesday, August 4th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.15. The business had revenue of $3.45 billion during the quarter, compared to analyst estimates of $3.41 billion. Gerdau had a return on equity of 7.97% and a net margin of 3.37%. On average, equities research analysts expect that Gerdau S.A. will post 0.53 EPS for the current fiscal year.

Gerdau Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, August 21st will be issued a $0.0448 dividend. This represents a $0.18 dividend on an annualized basis and a dividend yield of 3.6%. This is a positive change from Gerdau’s previous quarterly dividend of $0.04. The ex-dividend date is Friday, August 21st. Gerdau’s dividend payout ratio is presently 65.22%.

Insider Transactions at Gerdau

In related news, CFO Rafael Dorneles Japur sold 10,000 shares of Gerdau stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $5.10, for a total value of $51,000.00. Following the sale, the chief financial officer owned 86,967 shares of the company’s stock, valued at approximately $443,531.70. This trade represents a 10.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Marcos Zilles Mattiello sold 10,387 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $5.11, for a total value of $53,077.57. The disclosure for this sale is available in the SEC filing. 0.02% of the stock is owned by insiders.

Institutional Trading of Gerdau

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Gerdau by 68.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company’s stock worth $28,000 after purchasing an additional 3,931 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Gerdau by 95.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock valued at $31,000 after buying an additional 5,216 shares during the last quarter. Greenspring Advisors LLC acquired a new stake in Gerdau in the 4th quarter valued at $40,000. Caitong International Asset Management Co. Ltd bought a new stake in Gerdau during the 3rd quarter worth about $34,000. Finally, Coldstream Capital Management Inc. bought a new stake in Gerdau during the 3rd quarter worth about $37,000. 1.49% of the stock is currently owned by institutional investors and hedge funds.

About Gerdau

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.