Gerdau (NYSE:GGB) Shares Gap Down - Time to Sell?

Gerdau S.A. (NYSE:GGB - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $2.90, but opened at $2.81. Gerdau shares last traded at $2.82, with a volume of 304,331 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently commented on GGB. Bank of America reissued a "neutral" rating on shares of Gerdau in a research report on Monday, April 7th. UBS Group upgraded Gerdau from a "neutral" rating to a "buy" rating and lifted their price target for the company from $2.90 to $3.80 in a research note on Monday, June 9th.

Gerdau Price Performance

The firm has a market cap of $5.85 billion, a P/E ratio of 9.74, a P/E/G ratio of 2.89 and a beta of 1.38. The company has a fifty day moving average of $2.76 and a 200-day moving average of $2.86. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.64 and a quick ratio of 1.28.

Gerdau Increases Dividend

The company also recently disclosed a dividend, which was paid on Tuesday, May 27th. Shareholders of record on Tuesday, May 13th were paid a $0.0188 dividend. This is a positive change from Gerdau's previous dividend of $0.00. The ex-dividend date was Monday, May 12th. This represents a yield of 2.95%. Gerdau's dividend payout ratio (DPR) is 24.14%.

Hedge Funds Weigh In On Gerdau

Hedge funds and other institutional investors have recently modified their holdings of the business. Private Advisor Group LLC bought a new stake in shares of Gerdau during the 4th quarter worth $32,000. Capital Wealth Planning LLC purchased a new stake in Gerdau during the fourth quarter worth about $1,279,000. Carrera Capital Advisors bought a new stake in Gerdau in the fourth quarter worth about $40,000. Raymond James Financial Inc. bought a new stake in Gerdau in the fourth quarter worth about $65,000. Finally, Banco Santander S.A. boosted its stake in Gerdau by 56.6% in the fourth quarter. Banco Santander S.A. now owns 95,667 shares of the basic materials company's stock valued at $276,000 after acquiring an additional 34,562 shares during 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.

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