Gerdau (NYSE:GGB) Hits New 52-Week High – What’s Next?

Gerdau S.A. (NYSE:GGB) shares hit a new 52-week high on Thursday . The stock traded as high as $3.99 and last traded at $3.9750, with a volume of 14574252 shares changing hands. The stock had previously closed at $3.93.

Wall Street Analyst Weigh In

GGB has been the topic of a number of analyst reports. Zacks Research upgraded shares of Gerdau from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 18th. Weiss Ratings restated a “hold (c)” rating on shares of Gerdau in a report on Monday, December 29th. Finally, UBS Group reaffirmed a “buy” rating and set a $4.60 price target (up previously from $4.00) on shares of Gerdau in a research report on Monday, December 15th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $4.60.

Gerdau Price Performance

The company has a market cap of $7.94 billion, a PE ratio of 14.72, a PEG ratio of 1.69 and a beta of 1.47. The firm’s 50-day moving average is $3.62 and its 200-day moving average is $3.27. The company has a quick ratio of 1.47, a current ratio of 2.70 and a debt-to-equity ratio of 0.30.

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). Gerdau had a net margin of 4.38% and a return on equity of 5.92%. The firm had revenue of $3.38 billion for the quarter, compared to the consensus estimate of $17.81 billion. On average, equities analysts anticipate that Gerdau S.A. will post 0.46 EPS for the current year.

Gerdau Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Wednesday, November 12th were paid a $0.0521 dividend. The ex-dividend date of this dividend was Wednesday, November 12th. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. This represents a $0.21 annualized dividend and a yield of 5.2%. Gerdau’s payout ratio is currently 74.07%.

Institutional Trading of Gerdau

Hedge funds and other institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of 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 in the last quarter. Park Avenue Securities LLC bought a new stake in Gerdau during the second quarter worth about $29,000. EverSource Wealth Advisors LLC grew its holdings in Gerdau by 95.3% in the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock worth $31,000 after purchasing an additional 5,216 shares during the period. Wealthstream Advisors Inc. bought a new position in shares of Gerdau during the third quarter valued at approximately $32,000. Finally, Aster Capital Management DIFC Ltd bought a new position in shares of Gerdau during the third quarter valued at approximately $34,000. 1.49% of the stock is owned by hedge funds and other institutional investors.

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.