Gerdau (NYSE:GGB) Share Price Passes Above 200-Day Moving Average – Time to Sell?

Gerdau S.A. (NYSE:GGB)’s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $4.15 and traded as high as $4.30. Gerdau shares last traded at $4.2750, with a volume of 16,823,346 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on GGB shares. JPMorgan Chase & Co. boosted their price target on Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a report on Thursday, June 25th. Scotiabank raised shares of Gerdau from a “hold” rating to a “strong-buy” rating in a research note on Thursday, March 26th. Itau BBA Securities upgraded shares of Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 target price on the stock in a report on Wednesday, April 1st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a research note on Wednesday, June 24th. Finally, UBS Group reiterated a “buy” rating and set a $5.25 price target (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Gerdau has an average rating of “Moderate Buy” and an average price target of $5.28.

Gerdau Trading Up 2.7%

The company has a market cap of $8.83 billion, a PE ratio of 27.59 and a beta of 1.50. The business has a 50 day simple moving average of $4.51 and a two-hundred day simple moving average of $4.16. The company has a current ratio of 2.76, a quick ratio of 1.29 and a debt-to-equity ratio of 0.26.

Gerdau (NYSE:GGB) last posted its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The business had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. On average, analysts forecast that Gerdau S.A. will post 0.54 EPS for the current fiscal year.

Gerdau Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Friday, May 15th were issued a $0.0361 dividend. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. The ex-dividend date was Friday, May 15th. This represents a $0.14 annualized dividend and a yield of 3.3%. Gerdau’s dividend payout ratio (DPR) is presently 68.75%.

Insider Activity at Gerdau

In related news, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $4.60, for a total value of $36,800.00. Following the completion of the sale, the insider directly owned 8 shares in the company, valued at approximately $36.80. The trade was a 99.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the company’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 transaction, the chief executive officer directly owned 432,854 shares of the company’s stock, valued at $2,107,998.98. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 697,765 shares of company stock worth $3,310,355. Corporate insiders own 0.02% of the company’s stock.

Institutional Trading of Gerdau

Several institutional investors have recently made changes to their positions in GGB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Gerdau by 68.9% in 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 buying an additional 3,931 shares during the period. EverSource Wealth Advisors LLC grew its position in Gerdau by 95.3% during the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock valued at $31,000 after acquiring an additional 5,216 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Gerdau during the third quarter worth about $34,000. Coldstream Capital Management Inc. acquired a new stake in Gerdau during the third quarter worth about $37,000. Finally, Greenspring Advisors LLC purchased a new position in shares of Gerdau in the 4th quarter worth about $40,000. 1.49% of the stock is owned by hedge funds and other institutional investors.

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.