Gerdau S.A. (NYSE:GGB) Short Interest Update

Gerdau S.A. (NYSE:GGB) was the target of a significant decrease in short interest during the month of February. As of February 27th, there was short interest totaling 1,543,679 shares, a decrease of 67.5% from the February 12th total of 4,754,991 shares. Based on an average daily volume of 14,125,684 shares, the days-to-cover ratio is presently 0.1 days. Currently, 0.1% of the shares of the company are short sold. Currently, 0.1% of the shares of the company are short sold. Based on an average daily volume of 14,125,684 shares, the days-to-cover ratio is presently 0.1 days.

Gerdau Price Performance

NYSE:GGB traded down $0.11 during trading hours on Friday, reaching $3.30. 19,111,664 shares of the company traded hands, compared to its average volume of 16,738,562. Gerdau has a 1-year low of $2.27 and a 1-year high of $4.66. The stock has a market cap of $6.58 billion, a P/E ratio of 27.46, a P/E/G ratio of 0.96 and a beta of 1.46. The firm’s 50-day moving average is $4.07 and its 200-day moving average is $3.63. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.89 and a quick ratio of 1.40.

Gerdau (NYSE:GGB) last announced 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). Gerdau had a return on equity of 6.20% and a net margin of 1.93%.The firm had revenue of $3.08 billion for the quarter, compared to analyst estimates of $3.12 billion. Equities research analysts expect that Gerdau will post 0.46 earnings per share for the current fiscal year.

Gerdau Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Thursday, March 12th will be issued a $0.0194 dividend. The ex-dividend date is Thursday, March 12th. This represents a $0.08 dividend on an annualized basis and a yield of 2.4%. Gerdau’s dividend payout ratio (DPR) is presently 50.00%.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Gerdau

A number of large investors have recently modified their holdings of GGB. Robeco Institutional Asset Management B.V. raised its holdings in Gerdau by 314.9% in the third quarter. Robeco Institutional Asset Management B.V. now owns 262,341 shares of the basic materials company’s stock valued at $813,000 after buying an additional 199,115 shares during the period. Kapitalo Investimentos Ltda acquired a new position in shares of Gerdau during the 3rd quarter valued at $5,958,000. Capital International Investors boosted its position in Gerdau by 1.9% during the 3rd quarter. Capital International Investors now owns 31,046,243 shares of the basic materials company’s stock worth $96,243,000 after purchasing an additional 581,958 shares during the period. Donald Smith & CO. Inc. purchased a new position in Gerdau in the second quarter valued at about $17,440,000. Finally, SPX Gestao de Recursos Ltda lifted its stake in shares of Gerdau by 56.5% during the third quarter. SPX Gestao de Recursos Ltda now owns 4,491,042 shares of the basic materials company’s stock worth $13,922,000 after purchasing an additional 1,621,938 shares in the last quarter. 1.49% of the stock is currently owned by hedge funds and other institutional investors.

About Gerdau

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.