Gerdau (NYSE:GGB) Sets New 12-Month High – What’s Next?

Shares of Gerdau S.A. (NYSE:GGB) hit a new 52-week high on Tuesday . The company traded as high as $4.53 and last traded at $4.5250, with a volume of 4312469 shares changing hands. The stock had previously closed at $4.33.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Zacks Research raised Gerdau from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 18th. UBS Group restated a “buy” rating and issued a $4.60 price objective (up from $4.00) on shares of Gerdau in a research note 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 investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $4.60.

Gerdau Trading Up 5.4%

The company has a market capitalization of $9.12 billion, a P/E ratio of 16.97, a P/E/G ratio of 1.53 and a beta of 1.47. The company has a 50-day simple moving average of $3.78 and a 200 day simple moving average of $3.38. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.47 and a current ratio of 2.70.

Gerdau (NYSE:GGB) last posted its quarterly earnings data on Thursday, October 30th. The basic materials company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.01). The business had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $17.81 billion. Gerdau had a net margin of 4.38% and a return on equity of 5.92%. Sell-side analysts expect that Gerdau S.A. will post 0.46 earnings per share for the current year.

Gerdau Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Wednesday, November 12th were given a $0.0521 dividend. The ex-dividend date was Wednesday, November 12th. This represents a $0.21 annualized dividend and a yield of 4.6%. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s dividend payout ratio (DPR) is 74.07%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. BSW Wealth Partners lifted its stake in shares of Gerdau by 4.7% in the fourth quarter. BSW Wealth Partners now owns 53,697 shares of the basic materials company’s stock valued at $198,000 after buying an additional 2,428 shares during the period. Massachusetts Financial Services Co. MA raised its holdings in Gerdau by 41.1% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,327,066 shares of the basic materials company’s stock valued at $4,897,000 after acquiring an additional 386,594 shares in the last quarter. Tuttle Capital Management LLC bought a new stake in shares of Gerdau in the 4th quarter worth approximately $118,000. Coldstream Capital Management Inc. bought a new stake in shares of Gerdau in the 3rd quarter worth approximately $37,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Gerdau during the 3rd quarter worth approximately $34,000. Institutional investors and hedge funds 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.