Gerdau (NYSE:GGB) Hits New 12-Month High – What’s Next?

Gerdau S.A. (NYSE:GGB)’s share price reached a new 52-week high during trading on Wednesday . The stock traded as high as $4.23 and last traded at $4.1950, with a volume of 4051696 shares. The stock had previously closed at $4.16.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research report on Monday, December 29th. Zacks Research raised Gerdau from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 18th. Finally, UBS Group reiterated a “buy” rating and set a $4.60 price objective (up from $4.00) on shares of Gerdau in a research report on Monday, December 15th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Gerdau has a consensus rating of “Hold” and a consensus target price of $4.60.

Gerdau Price Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.47 and a current ratio of 2.70. The company’s 50 day moving average price is $3.72 and its 200-day moving average price is $3.34. The company has a market cap of $8.44 billion, a price-to-earnings ratio of 15.65, a PEG ratio of 1.44 and a beta of 1.47.

Gerdau (NYSE:GGB) last issued its earnings results on Thursday, October 30th. The basic materials company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.01). The business had revenue of $3.38 billion for the quarter, compared to the consensus estimate of $17.81 billion. Gerdau had a return on equity of 5.92% and a net margin of 4.38%. On average, equities research analysts forecast that Gerdau S.A. will post 0.46 earnings per share for the current fiscal year.

Gerdau Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Wednesday, November 12th were issued a $0.0521 dividend. This represents a $0.21 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date was Wednesday, November 12th. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s payout ratio is presently 74.07%.

Hedge Funds Weigh In On Gerdau

Institutional investors have recently bought and sold shares of the stock. Tuttle Capital Management LLC purchased a new stake in Gerdau during the fourth quarter valued at about $118,000. Coldstream Capital Management Inc. purchased a new stake in shares of Gerdau in the 3rd quarter valued at approximately $37,000. Caitong International Asset Management Co. Ltd acquired a new position in Gerdau in the 3rd quarter worth approximately $34,000. Dark Forest Capital Management LP acquired a new stake in Gerdau during the 3rd quarter valued at $71,000. Finally, PharVision Advisers LLC purchased a new stake in shares of Gerdau in the third quarter valued at $68,000. 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.