Gerdau (NYSE:GGB) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Gerdau to “strong buy,” while the broader analyst consensus remains “Moderate Buy,” with an average price target of $5.57.
• Gerdau shares opened at $5.03, compared with a 52-week range of $3.14 to $5.48; UBS and JPMorgan recently raised their price targets to $6.10 and $6.50, respectively.
• The company reported quarterly earnings of $0.15 per share, in line with estimates, and revenue of $3.45 billion, ahead of the $3.41 billion consensus. Insiders sold 147,407 shares worth approximately $737,561 over the prior quarter.

Gerdau (NYSE:GGB - Get Free Report) was upgraded by equities research analysts at Wall Street Zen to a "strong-buy" rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other analysts have also recently commented on GGB. UBS Group reaffirmed a "buy" rating and set a $6.10 price target (up from $5.70) on shares of Gerdau in a research report on Thursday, August 27th. Itau BBA Securities lowered Gerdau from an "outperform" rating to a "market perform" rating in a research report on Monday, August 10th. Weiss Ratings upgraded Gerdau from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday. JPMorgan Chase & Co. raised their target price on Gerdau from $6.00 to $6.50 and gave the stock an "overweight" rating in a research note on Friday, September 4th. Finally, Bank of America downgraded Gerdau from a "buy" rating to a "neutral" rating and set a $5.10 target price for the company. in a report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Gerdau currently has an average rating of "Moderate Buy" and an average target price of $5.57.

Gerdau Price Performance

Gerdau stock opened at $5.03 on Friday. The stock's 50 day moving average is $4.86 and its 200 day moving average is $4.62. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.87 and a quick ratio of 1.30. The firm has a market cap of $9.86 billion, a P/E ratio of 12.02 and a beta of 1.48. Gerdau has a one year low of $3.14 and a one year high of $5.48.

Gerdau (NYSE:GGB - Get Free Report) last released its earnings results on Tuesday, August 4th. The basic materials company reported $0.15 earnings per share for the quarter, meeting analysts' consensus estimates of $0.15. Gerdau had a net margin of 3.37% and a return on equity of 7.97%. The business had revenue of $3.45 billion during the quarter, compared to the consensus estimate of $3.41 billion. As a group, research analysts expect that Gerdau will post 0.55 EPS for the current year.

Insiders Place Their Bets

In other Gerdau news, EVP Rafael Lopes sold 51,800 shares of the business's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $5.09, for a total transaction of $263,662.00. Following the completion of the sale, the executive vice president owned 83,399 shares in the company, valued at approximately $424,500.91. The trade was a 38.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Rafael Japur sold 10,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $5.10, for a total value of $51,000.00. Following the completion of the sale, the chief financial officer directly owned 86,967 shares of the company's stock, valued at approximately $443,531.70. This trade represents a 10.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 147,407 shares of company stock worth $737,561. Corporate insiders own 0.02% of the company's stock.

Institutional Investors Weigh In On Gerdau

Several institutional investors have recently bought and sold shares of GGB. QRG Capital Management Inc. lifted its stake in Gerdau by 11.9% during the 1st quarter. QRG Capital Management Inc. now owns 30,100 shares of the basic materials company's stock valued at $109,000 after acquiring an additional 3,196 shares in the last quarter. Tidal Investments LLC boosted its holdings in Gerdau by 1.9% during the 2nd quarter. Tidal Investments LLC now owns 176,888 shares of the basic materials company's stock worth $715,000 after acquiring an additional 3,292 shares during the last quarter. Sequoia Financial Advisors LLC grew its stake in shares of Gerdau by 5.7% in the 1st quarter. Sequoia Financial Advisors LLC now owns 76,494 shares of the basic materials company's stock worth $276,000 after acquiring an additional 4,151 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of Gerdau by 57.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 13,243 shares of the basic materials company's stock worth $48,000 after acquiring an additional 4,842 shares in the last quarter. Finally, State of Wyoming raised its holdings in shares of Gerdau by 36.1% in the first quarter. State of Wyoming now owns 32,986 shares of the basic materials company's stock valued at $119,000 after purchasing an additional 8,758 shares during the last quarter. Institutional investors own 1.49% of the company's stock.

Gerdau Company Profile

Gerdau SA is a Brazilian steel producer and one of the major suppliers of long steel in the Americas. The company manufactures products including rebar, wire rod, structural shapes, merchant bars and other steel products used in construction, infrastructure, industrial manufacturing and agricultural equipment.

Gerdau also produces special steel for the automotive, machinery and other industrial sectors, as well as flat steel products through its operations in Brazil. Its business includes steel recycling, with a significant portion of its production based on ferrous scrap, and the company operates a network of steel mills, fabrication facilities and distribution centers.

Founded in Brazil in 1901, Gerdau serves customers across Brazil, North America and South America.

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