Gerdau (NYSE:GGB) Hits New 52-Week High – Should You Buy?

Gerdau S.A. (NYSE:GGB) reached a new 52-week high during trading on Monday . The stock 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.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on GGB shares. UBS Group reissued a “buy” rating and issued a $5.25 target price (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. JPMorgan Chase & Co. increased their price target on Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research report on Wednesday, June 24th. One research 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 stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $5.28.

Gerdau Price Performance

The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.29 and a current ratio of 2.76. The company has a market capitalization of $10.31 billion, a P/E ratio of 32.28 and a beta of 1.48. The firm’s fifty day moving average is $4.54 and its 200 day moving average is $4.28.

Gerdau (NYSE:GGB) last announced its earnings results on Tuesday, August 4th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.15. Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The business had revenue of $3.45 billion during the quarter, compared to analyst estimates of $3.41 billion. As a group, analysts predict that Gerdau S.A. will post 0.53 earnings per share for the current fiscal year.

Insider Transactions at Gerdau

In other news, insider Chia Yuan Wang sold 30,935 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $4.49, for a total transaction of $138,898.15. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Mauricio Metz sold 7,000 shares of Gerdau stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $4.85, for a total value of $33,950.00. Following the completion of the sale, the executive vice president owned 22,536 shares of the company’s stock, valued at $109,299.60. The trade was a 23.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 493,789 shares of company stock valued at $2,389,147. Company insiders own 0.02% of the company’s stock.

Institutional Inflows and Outflows

Institutional 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 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company’s stock worth $28,000 after purchasing an additional 3,931 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Gerdau by 95.3% during the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock worth $31,000 after buying an additional 5,216 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Gerdau during the third quarter worth $34,000. Coldstream Capital Management Inc. bought a new stake in Gerdau during the 3rd quarter valued at $37,000. Finally, Greenspring Advisors LLC bought a new stake in Gerdau during the 4th quarter valued at $40,000. Hedge funds and other institutional investors own 1.49% of the company’s stock.

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.