Gerdau (NYSE:GGB) Shares Up 5.2% - Here's Why

Gerdau S.A. (NYSE:GGB - Get Free Report)'s share price was up 5.2% during trading on Thursday . The company traded as high as $3.01 and last traded at $2.97. Approximately 2,920,556 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 9,549,987 shares. The stock had previously closed at $2.82.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on GGB shares. UBS Group dropped their price target on Gerdau from $3.30 to $2.90 and set a "neutral" rating on the stock in a research note on Wednesday, April 30th. Bank of America reiterated a "neutral" rating on shares of Gerdau in a research note on Monday, April 7th.

Gerdau Stock Performance

The stock has a market capitalization of $6.14 billion, a price-to-earnings ratio of 6.87 and a beta of 1.38. The company has a current ratio of 2.98, a quick ratio of 1.53 and a debt-to-equity ratio of 0.21. The firm has a 50-day moving average of $2.65 and a 200-day moving average of $2.90.

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 given a $0.0188 dividend. The ex-dividend date was Monday, May 12th. This represents a yield of 2.95%. This is a positive change from Gerdau's previous dividend of $0.00. Gerdau's dividend payout ratio is currently 24.14%.

Hedge Funds Weigh In On Gerdau

A number of institutional investors have recently bought and sold shares of the business. Jane Street Group LLC boosted its holdings in shares of Gerdau by 221.1% in the 4th quarter. Jane Street Group LLC now owns 1,236,271 shares of the basic materials company's stock valued at $3,560,000 after acquiring an additional 851,203 shares during the last quarter. Northern Trust Corp lifted its position in Gerdau by 34.8% during the fourth quarter. Northern Trust Corp now owns 918,238 shares of the basic materials company's stock valued at $2,645,000 after purchasing an additional 236,951 shares during the period. Thrivent Financial for Lutherans boosted its holdings in Gerdau by 164.3% in the fourth quarter. Thrivent Financial for Lutherans now owns 515,417 shares of the basic materials company's stock valued at $1,485,000 after purchasing an additional 320,404 shares during the last quarter. Bank of America Corp DE boosted its holdings in Gerdau by 130.6% in 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 purchasing an additional 5,718,323 shares during the last quarter. Finally, Barclays PLC acquired a new stake in Gerdau during the 4th quarter worth about $434,000. 1.49% of the stock is owned by hedge funds and other institutional investors.

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.