Zacks Investment Research cut shares of Gerdau S.A. (NYSE:GGB) from a buy rating to a hold rating in a report published on Tuesday.

According to Zacks, “Year to date, Gerdau's American Depository Receipts (ADR) have outperformed the industry. We believe that the company's product portfolio, manufacturing techniques and international diversity will help it grow over the long term. Also, its strategy of disposing loss-making assets/businesses will enable it to focus on the profitable ones. Going forward, any investment by the government in infrastructure improvements will boost steel demand in Brazil, thereby creating favorable conditions for the company. However, it is exposed to risks arising from higher raw material costs, foreign currency fluctuations, huge debt levels and cyclical nature of the industry. In second-quarter 2017, the company's adjusted net income declined 19.1% year over year due to 10.6% fall in revenues, forex woes and higher income tax expenses. Also, the stock is currently overvalued compared with the industry.”

GGB has been the subject of a number of other research reports. Scotiabank raised shares of Gerdau from an underperform rating to a sector perform rating in a research note on Friday, June 9th. BidaskClub raised shares of Gerdau from a hold rating to a buy rating in a research note on Tuesday, July 11th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $4.00.

Shares of Gerdau (NYSE:GGB) opened at 3.93 on Tuesday. The company has a 50 day moving average price of $3.50 and a 200 day moving average price of $3.36. Gerdau has a 1-year low of $2.47 and a 1-year high of $4.39. The stock’s market cap is $6.72 billion.

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The company also recently declared a quarterly dividend, which will be paid on Monday, September 11th. Shareholders of record on Thursday, August 24th will be issued a $0.005 dividend. This represents a $0.02 annualized dividend and a yield of 0.51%. The ex-dividend date is Tuesday, August 22nd. Gerdau’s dividend payout ratio is currently -3.23%.

A number of institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp raised its position in Gerdau by 1.2% in the first quarter. Bank of New York Mellon Corp now owns 2,472,966 shares of the basic materials company’s stock valued at $8,531,000 after buying an additional 29,673 shares in the last quarter. Wright Investors Service Inc. purchased a new position in Gerdau during the first quarter valued at about $113,000. Capstone Asset Management Co. raised its position in Gerdau by 3.0% in the first quarter. Capstone Asset Management Co. now owns 86,868 shares of the basic materials company’s stock valued at $300,000 after buying an additional 2,540 shares in the last quarter. Advisors Asset Management Inc. raised its position in Gerdau by 27.0% in the first quarter. Advisors Asset Management Inc. now owns 64,063 shares of the basic materials company’s stock valued at $221,000 after buying an additional 13,600 shares in the last quarter. Finally, Morgan Stanley raised its position in Gerdau by 416.0% in the first quarter. Morgan Stanley now owns 3,420,226 shares of the basic materials company’s stock valued at $11,800,000 after buying an additional 2,757,360 shares in the last quarter. 5.32% of the stock is currently owned by institutional investors and hedge funds.

About Gerdau

Gerdau SA (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela.

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