Gerdau (NYSE:GGB) Shares Pass Above Two Hundred Day Moving Average – What’s Next?

Gerdau S.A. (NYSE:GGB)’s stock price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $3.61 and traded as high as $3.80. Gerdau shares last traded at $3.74, with a volume of 16,002,932 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on GGB shares. UBS Group restated a “buy” rating and issued a $4.60 price objective (up from $4.00) on shares of Gerdau in a report on Monday, December 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a report on Monday, December 29th. Finally, Zacks Research upgraded shares of Gerdau from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 18th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $4.60.

Gerdau Stock Performance

The firm has a market cap of $7.11 billion, a price-to-earnings ratio of 29.67, a price-to-earnings-growth ratio of 1.06 and a beta of 1.46. The company has a quick ratio of 1.40, a current ratio of 2.89 and a debt-to-equity ratio of 0.26. The stock has a fifty day moving average price of $4.09 and a 200-day moving average price of $3.61.

Gerdau (NYSE:GGB) last issued its earnings results on Monday, February 23rd. The basic materials company reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.04). The business had revenue of $3.08 billion for the quarter, compared to analysts’ expectations of $3.12 billion. Gerdau had a return on equity of 6.20% and a net margin of 1.93%. On average, analysts expect that Gerdau S.A. will post 0.46 earnings per share for the current fiscal year.

Gerdau Cuts Dividend

The business also recently announced 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. This represents a $0.08 annualized dividend and a yield of 2.2%. The ex-dividend date is Thursday, March 12th. Gerdau’s dividend payout ratio is presently 50.00%.

Institutional Investors Weigh In On Gerdau

A number of large investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Gerdau by 68.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company’s stock valued at $28,000 after acquiring an additional 3,931 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in Gerdau by 95.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock valued at $31,000 after purchasing an additional 5,216 shares during the last quarter. Wealthstream Advisors Inc. purchased a new position in Gerdau in the 3rd quarter valued at about $32,000. Aster Capital Management DIFC Ltd purchased a new position in Gerdau in the 3rd quarter valued at about $34,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Gerdau during the 3rd quarter worth about $34,000. 1.49% of the stock is owned by institutional investors and hedge funds.

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.