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

Gerdau S.A. (NYSE:GGB) saw a large increase in short interest during the month of June. As of June 15th, there was short interest totaling 29,813,057 shares, an increase of 254.6% from the May 31st total of 8,407,063 shares. Based on an average daily volume of 18,828,183 shares, the days-to-cover ratio is currently 1.6 days. Approximately 1.5% of the company’s stock are sold short.

Gerdau Stock Performance

Shares of GGB stock traded down $0.04 during trading hours on Monday, reaching $4.12. 5,814,630 shares of the company’s stock were exchanged, compared to its average volume of 19,304,225. Gerdau has a fifty-two week low of $2.83 and a fifty-two week high of $4.98. 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 stock has a market capitalization of $8.23 billion, a P/E ratio of 25.65 and a beta of 1.48. The business has a fifty day moving average price of $4.54 and a 200-day moving average price of $4.12.

Gerdau (NYSE:GGB) last announced its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.05). The company had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.36 billion. Gerdau had a return on equity of 6.76% and a net margin of 2.40%. Analysts predict that Gerdau will post 0.55 EPS for the current fiscal year.

Gerdau Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th were issued a dividend of $0.0361 per share. This represents a $0.14 annualized dividend and a dividend yield of 3.5%. The ex-dividend date was Friday, May 15th. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s payout ratio is presently 75.00%.

Insider Transactions at Gerdau

In other Gerdau news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the firm’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $4.87, for a total transaction of $2,107,998.98. Following the transaction, the chief executive officer directly owned 432,854 shares in the company, valued at $2,107,998.98. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Clemir Uhlein sold 38,276 shares of the business’s stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $4.51, for a total value of $172,624.76. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 794,184 shares of company stock worth $3,697,276 in the last 90 days. 0.02% of the stock is owned by insiders.

Institutional Investors Weigh In On Gerdau

Several hedge funds have recently made changes to their positions in GGB. AQR Capital Management LLC raised its holdings in Gerdau by 65.9% in the 1st quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company’s stock valued at $1,656,000 after acquiring an additional 231,588 shares in the last quarter. Millennium Management LLC grew its holdings in shares of Gerdau by 54.6% during the 1st quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock worth $12,393,000 after purchasing an additional 1,541,311 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Gerdau by 821.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,344,175 shares of the basic materials company’s stock worth $6,657,000 after purchasing an additional 2,089,675 shares in the last quarter. Sivia Capital Partners LLC bought a new stake in shares of Gerdau during the second quarter valued at approximately $51,000. Finally, Creative Planning increased its position in shares of Gerdau by 88.8% during the second quarter. Creative Planning now owns 70,079 shares of the basic materials company’s stock valued at $205,000 after purchasing an additional 32,961 shares during the period. Institutional investors own 1.49% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on GGB shares. UBS Group reaffirmed a “buy” rating and set a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. JPMorgan Chase & Co. upped their price objective on shares of Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a report on Thursday. Itau BBA Securities upgraded shares of Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 target price on the stock in a research note on Wednesday, April 1st. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a report on Wednesday. Finally, Scotiabank raised shares of Gerdau from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 26th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Gerdau currently has a consensus rating of “Moderate Buy” and a consensus target price of $5.28.

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.