Gerdau (NYSE:GGB) Shares Gap Down - Here's Why

Gerdau S.A. (NYSE:GGB - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $3.15, but opened at $3.04. Gerdau shares last traded at $3.04, with a volume of 2,334,387 shares trading hands.

Analysts Set New Price Targets

Several research analysts have recently issued reports on GGB shares. UBS Group upgraded shares of Gerdau from a "neutral" rating to a "buy" rating and increased their price objective for the company from $2.90 to $3.80 in a report on Monday, June 9th. Bank of America restated a "neutral" rating on shares of Gerdau in a report on Monday, April 7th.

Gerdau Stock Down 0.5%

The stock has a market capitalization of $6.23 billion, a P/E ratio of 6.97 and a beta of 1.38. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.98 and a quick ratio of 1.53. The stock's fifty day moving average is $2.70 and its two-hundred day moving average is $2.89.

Gerdau Increases Dividend

The firm also recently announced a dividend, which was paid on Tuesday, May 27th. Investors of record on Tuesday, May 13th were issued a dividend of $0.0188 per share. This represents a yield of 2.95%. This is a boost from Gerdau's previous dividend of $0.00. The ex-dividend date was Monday, May 12th. Gerdau's dividend payout ratio (DPR) is presently 24.14%.

Institutional Investors Weigh In On Gerdau

Several hedge funds have recently made changes to their positions in the company. FMR LLC lifted its position in shares of Gerdau by 10.4% in the 4th quarter. FMR LLC now owns 98,194,996 shares of the basic materials company's stock valued at $282,802,000 after acquiring an additional 9,215,971 shares in the last quarter. Two Sigma Investments LP lifted its position in shares of Gerdau by 49.9% in the 4th quarter. Two Sigma Investments LP now owns 14,804,499 shares of the basic materials company's stock valued at $42,637,000 after acquiring an additional 4,928,378 shares in the last quarter. Two Sigma Advisers LP lifted its position in shares of Gerdau by 107.4% in the 4th quarter. Two Sigma Advisers LP now owns 12,645,660 shares of the basic materials company's stock valued at $36,420,000 after acquiring an additional 6,548,200 shares in the last quarter. Encompass Capital Advisors LLC purchased a new stake in shares of Gerdau in the 1st quarter valued at approximately $30,134,000. Finally, Bank of America Corp DE lifted its position in shares of Gerdau by 130.6% in the 4th quarter. Bank of America Corp DE now owns 10,095,722 shares of the basic materials company's stock valued at $29,076,000 after acquiring an additional 5,718,323 shares in the last quarter. Hedge funds and other institutional investors own 1.49% of the company's stock.

Gerdau Company Profile

Gerdau SA, together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.