Scotiabank Upgrades Gerdau (NYSE:GGB) to “Strong-Buy”

Gerdau (NYSE:GGB) was upgraded by equities researchers at Scotiabank from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other brokerages have also recently issued reports on GGB. Weiss Ratings reissued a “hold (c)” rating on shares of Gerdau in a research report on Monday, December 29th. UBS Group reaffirmed a “buy” rating and set a $4.60 target price (up from $4.00) on shares of Gerdau in a research note on Monday, December 15th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $4.60.

Gerdau Stock Down 0.7%

Shares of NYSE:GGB opened at $3.48 on Thursday. The firm has a market capitalization of $6.94 billion, a P/E ratio of 28.96, a P/E/G ratio of 0.99 and a beta of 1.46. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.40 and a current ratio of 2.89. The stock has a 50 day moving average price of $3.96 and a 200-day moving average price of $3.65. Gerdau has a 52-week low of $2.27 and a 52-week high of $4.66.

Gerdau (NYSE:GGB) last issued its quarterly earnings results on Monday, February 23rd. The basic materials company reported $0.07 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.04). The firm had revenue of $3.08 billion during 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%. As a group, equities research analysts anticipate that Gerdau will post 0.46 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Chairman Guilherme Chagas G. Johannpeter sold 85,607 shares of the company’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $3.29, for a total value of $281,647.03. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.02% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Gerdau

A number of hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake 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 worth $28,000 after acquiring an additional 3,931 shares during the period. EverSource Wealth Advisors LLC boosted 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 last quarter. Wealthstream Advisors Inc. bought a new stake in Gerdau in the 3rd quarter worth approximately $32,000. Aster Capital Management DIFC Ltd purchased a new stake in Gerdau during the 3rd quarter valued at $34,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Gerdau during the 3rd quarter valued at $34,000. Hedge funds and other institutional investors own 1.49% of the company’s stock.

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.