Gerdau (NYSE:GGB) Stock Price Target Raised at UBS Group

Key Points

• UBS raised Gerdau’s price target from $6.10 to $6.40 and maintained a “buy” rating, implying 34.31% upside from the stock’s $4.76 price. Analysts overall have a “Moderate Buy” consensus with an average target of $5.65.
• Gerdau shares rose 5.7% during Thursday trading, while the company’s latest quarterly results fell slightly short of expectations, with EPS of $0.15 versus the $0.17 consensus and revenue of $3.61 billion versus $3.64 billion expected.
• Company insiders sold 147,407 shares worth approximately $737,561 in the last quarter, while institutional ownership remains relatively low at 1.49%.

Gerdau (NYSE:GGB - Get Free Report) had its price objective boosted by stock analysts at UBS Group from $6.10 to $6.40 in a research note issued on Thursday, Benzinga reports. The brokerage currently has a "buy" rating on the basic materials company's stock. UBS Group's target price would suggest a potential upside of 34.31% from the stock's current price.

A number of other equities research analysts have also recently commented on the company. Itau BBA Securities raised Gerdau from a "market perform" rating to an "outperform" rating in a report on Wednesday. Weiss Ratings raised Gerdau from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, October 12th. HSBC cut Gerdau from a "buy" rating to a "hold" rating in a research report on Thursday, August 20th. Wall Street Zen raised Gerdau to a "strong-buy" rating in a research note on Saturday, October 17th. Finally, The Goldman Sachs Group cut Gerdau to a "neutral" rating in a report on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $5.65.

Gerdau Stock Up 5.7%

Shares of NYSE GGB traded up $0.26 during mid-day trading on Thursday, hitting $4.76. 10,760,425 shares of the stock traded hands, compared to its average volume of 17,176,568. The company has a market cap of $9.35 billion, a price-to-earnings ratio of 17.02 and a beta of 1.48. The stock has a fifty day moving average price of $4.88 and a 200-day moving average price of $4.46. Gerdau has a 52 week low of $3.14 and a 52 week high of $5.48. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.30 and a current ratio of 2.87.

Gerdau (NYSE:GGB - Get Free Report) last issued its earnings results on Monday, October 26th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.02). Gerdau had a return on equity of 7.97% and a net margin of 3.37%. The firm had revenue of $3.61 billion during the quarter, compared to the consensus estimate of $3.64 billion. Research analysts anticipate that Gerdau will post 0.55 EPS for the current year.

Insider Buying and Selling at Gerdau

In other news, EVP Rafael Lopes sold 51,800 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $5.09, for a total transaction of $263,662.00. Following the sale, the executive vice president directly owned 83,399 shares of the company's stock, valued at $424,500.91. This represents a 38.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Rafael Japur sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $5.10, for a total value of $51,000.00. Following the transaction, the chief financial officer owned 86,967 shares of the company's stock, valued at $443,531.70. This represents a 10.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 147,407 shares of company stock worth $737,561 in the last quarter. 0.02% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Gerdau

A number of hedge funds have recently bought and sold shares of the business. Ninety One UK Ltd purchased a new position in shares of Gerdau in the 3rd quarter worth approximately $145,390,000. Donald Smith & CO. Inc. purchased a new stake in Gerdau during the 2nd quarter valued at $70,663,000. Bank of America Corp DE raised its holdings in Gerdau by 11,393.6% during the 1st quarter. Bank of America Corp DE now owns 13,222,623 shares of the basic materials company's stock valued at $47,734,000 after buying an additional 13,107,580 shares during the period. Renaissance Technologies LLC lifted its position in Gerdau by 76.1% in the first quarter. Renaissance Technologies LLC now owns 10,936,524 shares of the basic materials company's stock worth $39,481,000 after buying an additional 4,725,200 shares during the last quarter. Finally, Ninety One North America Inc. bought a new stake in Gerdau in the third quarter worth $38,760,000. Hedge funds and other institutional investors own 1.49% of the company's stock.

About Gerdau

Gerdau SA is a Brazil-based steel producer with operations across the Americas. The company manufactures and sells steel products for the construction, industrial, automotive, agricultural and infrastructure markets.

Its product portfolio includes long steel products such as rebar, wire rod, merchant bars and structural shapes, as well as special steel used in automotive and industrial applications. Gerdau also produces flat steel and semi-finished products, including billets and slabs, and operates steel mills, scrap-processing facilities and related distribution networks.

Founded in 1901, Gerdau has grown from a regional Brazilian steelmaker into an international producer serving customers in Brazil, North America and other parts of Latin America.

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