Gerdau (NYSE:GGB) Reaches New 12-Month High – What’s Next?

Shares of Gerdau S.A. (NYSE:GGB) reached a new 52-week high during trading on Monday . The company traded as high as $5.03 and last traded at $5.0150, with a volume of 7303718 shares traded. The stock had previously closed at $4.96.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on GGB shares. UBS Group reaffirmed a “buy” rating and issued a $5.25 price target (up from $4.60) on shares of Gerdau in a research note on Wednesday, April 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research note on Wednesday, June 24th. Finally, JPMorgan Chase & Co. increased their target price on Gerdau from $5.50 to $6.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $5.28.

Gerdau Price Performance

The stock’s 50-day moving average price is $4.53 and its 200 day moving average price is $4.26. The company has a quick ratio of 1.29, a current ratio of 2.76 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $10.13 billion, a price-to-earnings ratio of 31.53 and a beta of 1.50.

Insider Buying and Selling at Gerdau

In other Gerdau news, CEO Cunha Gustavo Werneck Da acquired 165,224 shares of the business’s stock in a transaction on Friday, June 12th. The stock was bought at an average price of $4.73 per share, for a total transaction of $781,509.52. Following the acquisition, the chief executive officer owned 165,224 shares in the company, valued at approximately $781,509.52. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Mauricio Metz sold 7,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total transaction of $33,950.00. Following the completion of the transaction, the executive vice president directly owned 22,536 shares in the company, valued at $109,299.60. This trade represents a 23.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 535,789 shares of company stock worth $2,588,527 in the last 90 days. 0.02% of the stock is currently owned by insiders.

Institutional Trading of Gerdau

Several large investors have recently added to or reduced their stakes in GGB. Bank of America Corp DE boosted its holdings in Gerdau by 11,393.6% in the 1st quarter. Bank of America Corp DE now owns 13,222,623 shares of the basic materials company’s stock valued at $47,734,000 after purchasing an additional 13,107,580 shares during the last quarter. Donald Smith & CO. Inc. grew its stake in shares of Gerdau by 49.2% in 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 buying an additional 7,982,296 shares during the period. Renaissance Technologies LLC increased its holdings in shares of Gerdau by 76.1% during the 1st quarter. Renaissance Technologies LLC now owns 10,936,524 shares of the basic materials company’s stock worth $39,481,000 after buying an additional 4,725,200 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in shares of Gerdau during the 2nd quarter worth approximately $16,291,000. Finally, Kapitalo Investimentos Ltda purchased a new stake in shares of Gerdau during the 1st quarter valued at approximately $9,618,000. 1.49% of the stock is currently 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.