Gerdau (NYSE:GGB) Releases Quarterly Earnings Results

Gerdau (NYSE:GGB) released its quarterly earnings results on Monday. The basic materials company reported $0.07 EPS for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.04), Zacks reports. The business had revenue of $3.08 billion for the quarter, compared to analyst estimates of $3.12 billion. Gerdau had a return on equity of 5.92% and a net margin of 4.38%.

Gerdau Stock Performance

Shares of GGB stock traded down $0.09 on Tuesday, reaching $4.08. The stock had a trading volume of 9,469,586 shares, compared to its average volume of 21,302,289. Gerdau has a 12 month low of $2.27 and a 12 month high of $4.66. The firm has a market capitalization of $8.14 billion, a price-to-earnings ratio of 15.09, a P/E/G ratio of 1.18 and a beta of 1.46. The firm’s 50-day moving average is $4.06 and its two-hundred day moving average is $3.56. The company has a quick ratio of 1.47, a current ratio of 2.70 and a debt-to-equity ratio of 0.30.

Hedge Funds Weigh In On Gerdau

Several institutional investors and hedge funds have recently modified their holdings of GGB. Bank of America Corp DE increased its stake in Gerdau by 22.4% during the 3rd quarter. Bank of America Corp DE now owns 15,894,871 shares of the basic materials company’s stock worth $49,274,000 after acquiring an additional 2,910,482 shares during the period. SPX Gestao de Recursos Ltda grew its holdings in shares of Gerdau by 9.0% during the 4th quarter. SPX Gestao de Recursos Ltda now owns 4,894,496 shares of the basic materials company’s stock worth $18,061,000 after purchasing an additional 403,454 shares in the last quarter. Millennium Management LLC increased its position in shares of Gerdau by 54.6% in the first 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 during the period. Mackenzie Financial Corp raised its stake in Gerdau by 80.6% in the fourth quarter. Mackenzie Financial Corp now owns 4,117,253 shares of the basic materials company’s stock valued at $15,286,000 after purchasing an additional 1,837,160 shares in the last quarter. Finally, State Street Corp lifted its position in Gerdau by 5.7% during the fourth quarter. State Street Corp now owns 3,531,028 shares of the basic materials company’s stock worth $13,029,000 after purchasing an additional 190,483 shares during the period. 1.49% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a report on Monday, December 29th. UBS Group reissued a “buy” rating and issued a $4.60 target price (up from $4.00) on shares of Gerdau in a research report on Monday, December 15th. Finally, Zacks Research raised Gerdau from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 18th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $4.60.

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.