Short Interest in Gerdau S.A. (NYSE:GGB) Declines By 67.5%

Gerdau S.A. (NYSE:GGB) saw a significant decline in short interest in February. As of February 27th, there was short interest totaling 1,543,679 shares, a decline of 67.5% from the February 12th total of 4,754,991 shares. Currently, 0.1% of the shares of the company are sold short. Based on an average daily volume of 14,125,684 shares, the days-to-cover ratio is presently 0.1 days. Based on an average daily volume of 14,125,684 shares, the days-to-cover ratio is presently 0.1 days. Currently, 0.1% of the shares of the company are sold short.

Gerdau Price Performance

Shares of NYSE GGB traded down $0.11 during midday trading on Friday, hitting $3.30. 19,111,664 shares of the company’s stock were exchanged, compared to its average volume of 20,204,471. The company has a current ratio of 2.89, a quick ratio of 1.40 and a debt-to-equity ratio of 0.26. The business’s fifty day moving average price is $4.08 and its two-hundred day moving average price is $3.63. The company has a market cap of $6.58 billion, a price-to-earnings ratio of 27.46, a PEG ratio of 1.02 and a beta of 1.46. Gerdau has a 12-month low of $2.27 and a 12-month high of $4.66.

Gerdau (NYSE:GGB) last announced its earnings results on Monday, February 23rd. The basic materials company reported $0.07 earnings per share 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 net margin of 1.93% and a return on equity of 6.20%. As a group, research analysts forecast that Gerdau will post 0.46 EPS for the current fiscal year.

Gerdau Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Thursday, March 12th will be given a dividend of $0.0194 per share. The ex-dividend date is Thursday, March 12th. This represents a $0.08 dividend on an annualized basis and a yield of 2.4%. Gerdau’s dividend payout ratio (DPR) is presently 166.67%.

Analyst Upgrades and Downgrades

GGB has been the topic of a number of recent research reports. Zacks Research raised Gerdau from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 18th. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research report on Monday, December 29th. Finally, UBS Group reissued a “buy” rating and issued a $4.60 price target (up from $4.00) on shares of Gerdau in a report on Monday, December 15th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $4.60.

Institutional Investors Weigh In On Gerdau

Several hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in Gerdau by 162.6% in the second quarter. Bank of America Corp DE now owns 12,984,389 shares of the basic materials company’s stock worth $37,914,000 after buying an additional 8,039,814 shares in the last quarter. Donald Smith & CO. Inc. grew its holdings in shares of Gerdau by 49.2% during the 4th quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company’s stock valued at $89,341,000 after purchasing an additional 7,982,296 shares during the last quarter. Causeway Capital Management LLC raised its position in Gerdau by 169.2% in the 3rd quarter. Causeway Capital Management LLC now owns 7,189,270 shares of the basic materials company’s stock worth $22,287,000 after purchasing an additional 4,519,092 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Gerdau by 821.1% in 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 purchasing an additional 2,089,675 shares during the last quarter. Finally, Jump Financial LLC bought a new stake in Gerdau in the fourth quarter worth $7,400,000. Institutional investors own 1.49% of the company’s stock.

Gerdau Company Profile

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.