Gerdau (NYSE:GGB) Sets New 12-Month High - Should You Buy?

Key Points

• Gerdau shares reached a new 52-week high of $4.99, closing near $4.99 versus the prior close of $4.83. The stock’s average analyst rating is “Moderate Buy,” with a consensus price target of $5.28.
• Analyst sentiment has generally improved, including JPMorgan raising its target to $6.00 and UBS increasing its target to $5.25. However, Gerdau’s latest quarterly results missed expectations, with EPS of $0.10 versus $0.15 forecast and revenue of $3.22 billion versus $3.36 billion expected.
• Insider activity was mixed: the CEO bought 165,224 shares, while insiders collectively sold $2.68 million worth of stock over the past quarter. Institutional investors own a relatively small 1.49% stake in the company.

Shares of Gerdau S.A. (NYSE:GGB - Get Free Report) hit a new 52-week high during trading on Tuesday . The company traded as high as $4.99 and last traded at $4.9850, with a volume of 2877759 shares traded. The stock had previously closed at $4.83.

Wall Street Analysts Forecast Growth

GGB has been the topic of a number of analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Gerdau in a research note on Wednesday, June 24th. JPMorgan Chase & Co. upped their price objective on Gerdau from $5.50 to $6.00 and gave the stock an "overweight" rating in a research report on Thursday, June 25th. Itau BBA Securities upgraded Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price objective on the stock in a report on Wednesday, April 1st. Finally, UBS Group reissued a "buy" rating and set a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $5.28.

Gerdau Stock Performance

The company has a current ratio of 2.76, a quick ratio of 1.29 and a debt-to-equity ratio of 0.26. The firm's fifty day moving average price is $4.51 and its 200-day moving average price is $4.24. The firm has a market cap of $9.89 billion, a price-to-earnings ratio of 30.97 and a beta of 1.50.

Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The company had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. Analysts expect that Gerdau S.A. will post 0.53 earnings per share for the current year.

Insider Transactions at Gerdau

In related news, EVP Mauricio Metz sold 7,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total transaction of $33,950.00. Following the transaction, the executive vice president owned 22,536 shares in the company, valued at $109,299.60. This trade represents a 23.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Cunha Gustavo Werneck Da purchased 165,224 shares of the company's stock in a transaction that occurred on Friday, June 12th. The shares were purchased at an average price of $4.73 per share, for a total transaction of $781,509.52. Following the purchase, the chief executive officer directly owned 165,224 shares in the company, valued at $781,509.52. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 555,789 shares of company stock valued at $2,679,327 over the last quarter. Company insiders own 0.02% of the company's stock.

Institutional Investors Weigh In On Gerdau

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Gerdau by 68.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company's stock worth $28,000 after acquiring an additional 3,931 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Gerdau by 95.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company's stock valued at $31,000 after purchasing an additional 5,216 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Gerdau during the 3rd quarter worth $34,000. Coldstream Capital Management Inc. acquired a new stake in Gerdau during the 3rd quarter worth $37,000. Finally, Greenspring Advisors LLC purchased a new position in Gerdau during the 4th quarter worth $40,000. 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.