Gerdau S.A. (NYSE:GGB) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Gerdau has a consensus analyst rating of “Moderate Buy”, with six firms covering the stock and an average 12-month price target of about $5.28.
• The company’s latest quarterly earnings missed estimates, reporting $0.10 EPS versus $0.15 expected and revenue of $3.22 billion versus $3.36 billion expected.
• Gerdau recently raised its quarterly dividend to $0.0361 per share, implying an annualized yield of about 3.3%.

Shares of Gerdau S.A. (NYSE:GGB - Get Free Report) have been given an average recommendation of "Moderate Buy" by the six ratings firms that are currently covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $5.2833.

Several research analysts have commented on GGB shares. UBS Group reissued a "buy" rating and set a $5.25 price objective (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gerdau in a report on Wednesday, June 24th. Itau BBA Securities upgraded Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 target price on the stock in a research report on Wednesday, April 1st. JPMorgan Chase & Co. increased their price target on Gerdau from $5.50 to $6.00 and gave the company an "overweight" rating in a research note on Thursday, June 25th. Finally, Scotiabank upgraded Gerdau from a "hold" rating to a "strong-buy" rating in a report on Thursday, March 26th.

Gerdau Trading Up 2.7%

Shares of GGB opened at $4.41 on Friday. The firm has a market cap of $8.83 billion, a P/E ratio of 27.59 and a beta of 1.50. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29. Gerdau has a 1 year low of $2.83 and a 1 year high of $4.98. The company has a 50 day simple moving average of $4.51 and a two-hundred day simple moving average of $4.16.

Gerdau (NYSE:GGB - Get Free Report) last released its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The company had revenue of $3.22 billion during the quarter, compared to analysts' expectations of $3.36 billion. On average, equities analysts expect that Gerdau will post 0.54 earnings per share for the current fiscal year.

Gerdau Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th were given a dividend of $0.0361 per share. The ex-dividend date was Friday, May 15th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 3.3%. This is an increase from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio is currently 75.00%.

Insider Transactions at Gerdau

In other Gerdau news, insider Clemir Uhlein sold 38,276 shares of the stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $4.51, for a total transaction of $172,624.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $4.60, for a total transaction of $36,800.00. Following the transaction, the insider owned 8 shares of the company's stock, valued at $36.80. This trade represents a 99.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 671,765 shares of company stock valued at $3,200,865 in the last 90 days. Company insiders own 0.02% of the company's stock.

Institutional Trading of Gerdau

Hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew 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 acquiring an additional 3,931 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in Gerdau by 95.3% during the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company's stock valued at $31,000 after purchasing an additional 5,216 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Gerdau during the third quarter valued at approximately $34,000. Coldstream Capital Management Inc. bought a new stake in shares of Gerdau in the 3rd quarter valued at approximately $37,000. Finally, Greenspring Advisors LLC bought a new stake in shares of Gerdau in the 4th quarter valued at approximately $40,000. 1.49% of the stock is currently owned by hedge funds and other institutional investors.

Gerdau Company Profile

Gerdau SA is a Brazilian-based steel producer engaged in the manufacture and distribution of long steel products for the construction, industrial and agricultural sectors. Established in 1901, the company operates an integrated network of electric-arc furnaces and rolling mills, producing reinforcement bars, wire rod, merchant bars and structural shapes. Gerdau's product portfolio also includes specialty long steel, high-yield reinforcement, rail, beams and steel coils, as well as value-added processing services such as cutting, bending and coating.

The company has expanded its footprint beyond Brazil, with significant operations in North America, South America and a presence in select European markets.

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