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

Gerdau S.A. (NYSE:GGB - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $2.84, but opened at $2.77. Gerdau shares last traded at $2.77, with a volume of 955,873 shares trading hands.

Analysts Set New Price Targets

Several research firms have weighed in on GGB. Bank of America restated a "neutral" rating on shares of Gerdau in a report on Monday, April 7th. UBS Group decreased their price objective on shares of Gerdau from $3.30 to $2.90 and set a "neutral" rating for the company in a research note on Wednesday, April 30th.

Gerdau Stock Down 3.3%

The business's 50-day moving average price is $2.67 and its 200-day moving average price is $2.93. The company has a quick ratio of 1.53, a current ratio of 2.98 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $5.71 billion, a PE ratio of 6.38 and a beta of 1.43.

Gerdau Increases Dividend

The business also recently declared a dividend, which was paid on Tuesday, May 27th. Stockholders of record on Tuesday, May 13th were given a $0.0188 dividend. This represents a dividend yield of 2.95%. This is a positive change from Gerdau's previous dividend of $0.00. The ex-dividend date of this dividend was Monday, May 12th. Gerdau's dividend payout ratio is 24.14%.

Hedge Funds Weigh In On Gerdau

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FMR LLC raised its stake in Gerdau by 10.4% during the 4th quarter. FMR LLC now owns 98,194,996 shares of the basic materials company's stock valued at $282,802,000 after purchasing an additional 9,215,971 shares during the last quarter. Two Sigma Investments LP lifted its position in Gerdau by 49.9% during 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 purchasing an additional 4,928,378 shares during the period. Two Sigma Advisers LP lifted its position in Gerdau by 107.4% during 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 purchasing an additional 6,548,200 shares during the period. Encompass Capital Advisors LLC acquired a new position in Gerdau during the 1st quarter valued at about $30,134,000. Finally, Bank of America Corp DE lifted its position in Gerdau by 130.6% during 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 purchasing an additional 5,718,323 shares during the period. Institutional investors own 1.49% of the company's stock.

About Gerdau

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.

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