Gerdau (NYSE:GGB) Hits New 52-Week High - Here's Why

Key Points

• Gerdau shares reached a new 52-week high, trading as high as $5.03 and closing around $5.015, up from the previous close of $4.96.
• Analyst sentiment is generally positive: JPMorgan raised its price target to $6.00, UBS increased its target to $5.25, and the stock carries a consensus “Moderate Buy” rating with an average target of $5.28.
• Institutional investors increased their holdings during the fourth quarter, but insiders have sold about $2.59 million of shares over the past 90 days, including substantial sales by the CEO.

Gerdau S.A. (NYSE:GGB - Get Free Report) shares hit a new 52-week high during trading on Monday . The company traded as high as $5.03 and last traded at $5.0150, with a volume of 7303718 shares traded. The stock had previously closed at $4.96.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on GGB shares. JPMorgan Chase & Co. increased their price objective on Gerdau from $5.50 to $6.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. UBS Group reaffirmed a "buy" rating and set a $5.25 target price (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Gerdau in a research report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $5.28.

Gerdau Stock Up 2.1%

The company has a quick ratio of 1.29, a current ratio of 2.76 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $10.13 billion, a price-to-earnings ratio of 31.53 and a beta of 1.50. The business's 50-day moving average is $4.53 and its 200-day moving average is $4.26.

Insider Buying and Selling

In other news, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the business's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $4.60, for a total value of $36,800.00. Following the completion of the transaction, the insider owned 8 shares of the company's stock, valued at $36.80. The trade was a 99.90% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the firm's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $4.87, for a total value of $2,107,998.98. Following the sale, the chief executive officer directly owned 432,854 shares in the company, valued at approximately $2,107,998.98. This trade represents a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 535,789 shares of company stock worth $2,588,527. Corporate insiders own 0.02% of the company's stock.

Hedge Funds Weigh In On Gerdau

A number of hedge funds have recently bought and sold shares of GGB. UBS Group AG raised its stake in shares of Gerdau by 45.1% during the 4th quarter. UBS Group AG now owns 3,034,398 shares of the basic materials company's stock worth $11,197,000 after buying an additional 943,254 shares during the period. Massachusetts Financial Services Co. MA grew its stake in Gerdau by 41.1% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,327,066 shares of the basic materials company's stock valued at $4,897,000 after acquiring an additional 386,594 shares during the period. Donald Smith & CO. Inc. increased its holdings in Gerdau by 49.2% in the 4th quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company's stock worth $89,341,000 after acquiring an additional 7,982,296 shares in the last quarter. Aquamarine Financial Cayman Ltd raised its position in Gerdau by 9.7% during the fourth quarter. Aquamarine Financial Cayman Ltd now owns 19,526,171 shares of the basic materials company's stock worth $72,052,000 after acquiring an additional 1,724,943 shares during the period. Finally, Banque Cantonale Vaudoise acquired a new position in Gerdau during the fourth quarter worth $2,952,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.