Gerdau (NYSE:GGB) Share Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Gerdau S.A. surpassed its 200-day moving average of $2.87, reaching a trading high of $3.15, which indicates positive momentum for the stock.
• UBS Group upgraded Gerdau from a "neutral" rating to a "buy" rating, adjusting their price target from $2.90 to $3.80, reflecting increased confidence in the company's performance.
• Gerdau recently declared a quarterly dividend of $0.0216, an increase from the previous $0.02, resulting in a dividend yield of 2.8%.

Gerdau S.A. (NYSE:GGB - Get Free Report) shares passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $2.87 and traded as high as $3.15. Gerdau shares last traded at $3.13, with a volume of 13,893,323 shares.

Analyst Upgrades and Downgrades

Separately, UBS Group raised shares of Gerdau from a "neutral" rating to a "buy" rating and raised their target price for the stock from $2.90 to $3.80 in a research report on Monday, June 9th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Gerdau presently has an average rating of "Moderate Buy" and a consensus target price of $3.80.

Gerdau Stock Performance

The company has a current ratio of 2.89, a quick ratio of 1.50 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $6.28 billion, a price-to-earnings ratio of 10.88, a price-to-earnings-growth ratio of 0.77 and a beta of 1.38. The company has a 50-day moving average of $3.01 and a 200-day moving average of $2.87.

Gerdau (NYSE:GGB - Get Free Report) last issued its earnings results on Thursday, July 31st. The basic materials company reported $0.08 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.01). Gerdau had a return on equity of 6.51% and a net margin of 4.81%.The business had revenue of $3.13 billion for the quarter, compared to analyst estimates of $3.22 billion. On average, equities research analysts forecast that Gerdau S.A. will post 0.46 earnings per share for the current fiscal year.

Gerdau Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 25th. Stockholders of record on Wednesday, August 13th were given a dividend of $0.0216 per share. This represents a $0.09 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Wednesday, August 13th. This is a positive change from Gerdau's previous quarterly dividend of $0.02. Gerdau's payout ratio is currently 27.59%.

Institutional Trading of Gerdau

Institutional investors and hedge funds have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Gerdau by 68.9% in 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 buying an additional 3,931 shares during the period. Park Avenue Securities LLC acquired a new stake in shares of Gerdau in the 2nd quarter worth about $29,000. EverSource Wealth Advisors LLC increased its holdings in shares of Gerdau by 95.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company's stock worth $31,000 after acquiring an additional 5,216 shares during the period. Wolverine Trading LLC acquired a new stake in shares of Gerdau in the fourth quarter valued at approximately $37,000. Finally, Xponance Inc. acquired a new stake in shares of Gerdau in the first quarter valued at approximately $40,000. 1.49% of the stock is currently owned by institutional investors and hedge funds.

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.