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

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 traded.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Bank of America reaffirmed a "neutral" rating on shares of Gerdau in a report on Monday, April 7th. UBS Group raised shares of Gerdau from a "neutral" rating to a "buy" rating and upped their price target for the stock from $2.90 to $3.80 in a report on Monday, June 9th.

Gerdau Trading Down 0.5%

The stock has a market cap 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 firm's fifty day moving average price is $2.70 and its two-hundred day moving average price is $2.89.

Gerdau Increases Dividend

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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GGB. Encompass Capital Advisors LLC bought a new position in Gerdau in the first quarter valued at $30,134,000. FMR LLC grew its stake in shares of Gerdau by 10.4% during the fourth quarter. FMR LLC now owns 98,194,996 shares of the basic materials company's stock valued at $282,802,000 after buying an additional 9,215,971 shares during the last quarter. Carrhae Capital LLP bought a new position in shares of Gerdau during the first quarter valued at about $18,655,000. Two Sigma Advisers LP grew its stake in shares of Gerdau by 107.4% during the fourth quarter. Two Sigma Advisers LP now owns 12,645,660 shares of the basic materials company's stock valued at $36,420,000 after buying an additional 6,548,200 shares during the last quarter. Finally, Bank of America Corp DE grew its stake in shares of Gerdau by 130.6% during the fourth 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 buying an additional 5,718,323 shares during the last quarter. 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.