Gerdau S.A. (GGB) Downgraded to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of Gerdau S.A. (NYSE:GGB) from a buy rating to a hold rating in a research report sent to investors on Monday morning.
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 topic of a number of other reports. BidaskClub raised Gerdau from a sell rating to a hold rating in a research note on Saturday, June 24th. Scotiabank raised Gerdau from an underperform rating to a sector perform rating in a research note on Friday, June 9th. Santander raised Gerdau from a hold rating to a buy rating in a research note on Tuesday, September 12th. Credit Suisse Group lowered Gerdau from an outperform rating to a neutral rating in a research note on Thursday, September 7th. Finally, Sandler O’Neill raised Gerdau from a hold rating to a buy rating in a research note on Wednesday, September 13th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus price target of $4.25.
Gerdau (NYSE GGB) opened at 3.87 on Monday. The company has a market capitalization of $6.61 billion, a P/E ratio of 11.87 and a beta of 2.33. The stock’s 50 day moving average price is $3.65 and its 200-day moving average price is $3.32. Gerdau has a 52-week low of $2.49 and a 52-week high of $4.39.
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The business also recently disclosed a quarterly dividend, which was paid on Monday, September 11th. Shareholders of record on Thursday, August 24th were paid a dividend of $0.005 per share. This represents a $0.02 dividend on an annualized basis and a yield of 0.52%. The ex-dividend date was Tuesday, August 22nd. Gerdau’s dividend payout ratio (DPR) is currently -3.23%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. World Asset Management Inc boosted its stake in Gerdau by 0.5% during the first quarter. World Asset Management Inc now owns 71,106 shares of the basic materials company’s stock worth $245,000 after buying an additional 386 shares during the last quarter. Global X Management Co. LLC boosted its stake in Gerdau by 1.9% during the first quarter. Global X Management Co. LLC now owns 32,137 shares of the basic materials company’s stock worth $111,000 after buying an additional 589 shares during the last quarter. Comerica Bank boosted its stake in Gerdau by 1.5% during the first quarter. Comerica Bank now owns 65,710 shares of the basic materials company’s stock worth $196,000 after buying an additional 982 shares during the last quarter. IPG Investment Advisors LLC boosted its stake in Gerdau by 2.6% during the second quarter. IPG Investment Advisors LLC now owns 58,500 shares of the basic materials company’s stock worth $178,000 after buying an additional 1,500 shares during the last quarter. Finally, Envestnet Asset Management Inc. boosted its stake in Gerdau by 5.7% during the first quarter. Envestnet Asset Management Inc. now owns 41,695 shares of the basic materials company’s stock worth $144,000 after buying an additional 2,236 shares during the last quarter. 5.32% of the stock is currently owned by institutional investors.
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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