Gerdau (NYSE:GGB) Stock Rating Upgraded by Itau BBA Securities

Gerdau (NYSE:GGB) was upgraded by research analysts at Itau BBA Securities from a “market perform” rating to an “outperform” rating in a report released on Wednesday, Marketbeat Ratings reports. The firm presently has a $4.60 price objective on the basic materials company’s stock. Itau BBA Securities’ price target would suggest a potential upside of 27.25% from the company’s previous close.

Other research analysts have also issued research reports about the stock. UBS Group reiterated 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. Weiss Ratings reissued a “hold (c)” rating on shares of Gerdau in a research note on Friday. Finally, Scotiabank upgraded shares of Gerdau from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $4.60.

Gerdau Trading Up 4.5%

NYSE:GGB opened at $3.62 on Wednesday. The stock has a market cap of $7.22 billion, a PE ratio of 30.13, a price-to-earnings-growth ratio of 0.98 and a beta of 1.46. Gerdau has a fifty-two week low of $2.27 and a fifty-two week high of $4.66. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.89 and a quick ratio of 1.40. The stock’s 50-day moving average is $3.92 and its two-hundred day moving average is $3.66.

Gerdau (NYSE:GGB) last posted its quarterly earnings results on Tuesday, February 24th. The basic materials company reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.04). The company had revenue of $3.08 billion during the quarter, compared to analysts’ expectations of $3.12 billion. Gerdau had a return on equity of 6.20% and a net margin of 1.93%. As a group, equities research analysts forecast that Gerdau will post 0.46 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Chairman Guilherme Chagas G. Johannpeter sold 85,607 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $3.29, for a total transaction of $281,647.03. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.02% of the company’s stock.

Institutional Trading of Gerdau

Several large investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in 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 acquiring an additional 3,931 shares during the period. EverSource Wealth Advisors LLC boosted its holdings 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. Wealthstream Advisors Inc. bought a new stake in Gerdau during the third quarter valued at about $32,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Gerdau in the third quarter valued at about $34,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Gerdau in the third quarter valued at about $34,000. 1.49% of the stock is owned by 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.