Gerdau S.A. (NYSE:GGB) Receives $5.28 Consensus Price Target from Analysts

Shares of Gerdau S.A. (NYSE:GGB) have been given an average rating of “Moderate Buy” by the six analysts that are presently covering the company, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $5.2833.

GGB has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their target price on shares of Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. UBS Group restated a “buy” rating and issued a $5.25 price objective (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. Itau BBA Securities cut shares of Gerdau from an “outperform” rating to a “market perform” rating in a research note on Monday. Finally, Weiss Ratings raised shares of Gerdau from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday, August 5th.

Gerdau Stock Up 0.6%

Gerdau stock opened at $4.97 on Tuesday. The firm has a market cap of $9.94 billion, a P/E ratio of 21.61 and a beta of 1.48. The company has a quick ratio of 1.30, a current ratio of 2.87 and a debt-to-equity ratio of 0.26. The business has a fifty day moving average of $4.58 and a two-hundred day moving average of $4.30. Gerdau has a twelve month low of $2.85 and a twelve month high of $5.18.

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

Gerdau Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors 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 yield of 3.6%. The ex-dividend date of this dividend is Friday, August 21st. This is a positive change from Gerdau’s previous quarterly dividend of $0.04. Gerdau’s payout ratio is currently 52.17%.

Insider Activity at Gerdau

In other news, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $4.60, for a total transaction of $36,800.00. Following the transaction, the insider owned 8 shares in the company, valued at $36.80. This trade represents a 99.90% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Rafael Dorneles Japur sold 10,000 shares of Gerdau stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $5.10, for a total transaction of $51,000.00. Following the completion of the sale, the chief financial officer directly owned 86,967 shares in the company, valued at $443,531.70. This represents a 10.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 70,935 shares of company stock valued at $332,148 in the last ninety days. 0.02% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC grew its holdings in shares of Gerdau by 65.9% during the first quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company’s stock worth $1,656,000 after buying an additional 231,588 shares in the last quarter. Millennium Management LLC lifted its stake in shares of Gerdau by 54.6% in the first quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock worth $12,393,000 after buying an additional 1,541,311 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Gerdau by 821.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,344,175 shares of the basic materials company’s stock worth $6,657,000 after acquiring an additional 2,089,675 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Gerdau during the second quarter worth about $51,000. Finally, Creative Planning grew its stake in Gerdau by 88.8% during the 2nd quarter. Creative Planning now owns 70,079 shares of the basic materials company’s stock valued at $205,000 after acquiring an additional 32,961 shares in the last quarter. Hedge funds and other institutional investors own 1.49% of the company’s stock.

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.