Gerdau (NYSE:GGB) Sets New 52-Week High – Here’s Why

Gerdau S.A. (NYSE:GGB)’s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $4.53 and last traded at $4.5250, with a volume of 4312469 shares changing hands. The stock had previously closed at $4.33.

Analysts Set New Price Targets

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

Gerdau Trading Up 5.4%

The business has a 50-day moving average of $3.78 and a 200-day moving average of $3.38. The company has a quick ratio of 1.47, a current ratio of 2.70 and a debt-to-equity ratio of 0.30. The stock has a market cap of $9.12 billion, a price-to-earnings ratio of 16.97, a PEG ratio of 1.53 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 the consensus estimate of $0.11 by ($0.01). The firm had revenue of $3.38 billion during the quarter, compared to analyst estimates of $17.81 billion. Gerdau had a return on equity of 5.92% and a net margin of 4.38%. As a group, research analysts forecast that Gerdau S.A. will post 0.46 earnings per share for the current year.

Gerdau Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Wednesday, November 12th were given a dividend of $0.0521 per share. The ex-dividend date of this dividend was Wednesday, November 12th. This is a boost from Gerdau’s previous quarterly dividend of $0.02. This represents a $0.21 annualized dividend and a yield of 4.6%. Gerdau’s payout ratio is 74.07%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Gerdau by 68.9% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company’s stock valued at $28,000 after purchasing an additional 3,931 shares in the last quarter. Park Avenue Securities LLC acquired a new position in Gerdau during the second quarter worth $29,000. EverSource Wealth Advisors LLC raised 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 valued at $31,000 after buying an additional 5,216 shares in the last quarter. Wealthstream Advisors Inc. acquired a new stake in shares of Gerdau in the third quarter worth about $32,000. Finally, Aster Capital Management DIFC Ltd acquired a new stake in shares of Gerdau in the third quarter worth about $34,000. Institutional investors and hedge funds 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.