JPMorgan Chase & Co. Issues Positive Forecast for Gerdau (NYSE:GGB) Stock Price

Key Points

• JPMorgan Chase raised Gerdau’s price target from $5.50 to $6.00 and kept an overweight rating, implying about 44% upside from the prior close.
• Other analysts have also turned more positive on the stock, including Scotiabank upgrading Gerdau to strong-buy and UBS lifting its target to $5.25; the consensus rating is now Moderate Buy with a $5.28 average target.
• Gerdau’s latest quarter came in below expectations, with EPS of $0.10 versus $0.15 expected and revenue of $3.22 billion versus $3.36 billion expected, even as the stock traded up 1.8% to $4.17 on Thursday.

Gerdau (NYSE:GGB - Get Free Report) had its target price lifted by equities researchers at JPMorgan Chase & Co. from $5.50 to $6.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the basic materials company's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 44.06% from the stock's previous close.

A number of other equities analysts have also recently issued reports on the company. Scotiabank upgraded Gerdau from a "hold" rating to a "strong-buy" rating in a report on Thursday, March 26th. UBS Group restated a "buy" rating and issued a $5.25 price target (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 research report on Friday, March 27th. Finally, Itau BBA Securities upgraded Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price objective for the company in a report on Wednesday, April 1st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $5.28.

Gerdau Stock Up 1.8%

GGB traded up $0.07 during trading on Thursday, reaching $4.17. The company had a trading volume of 996,857 shares, compared to its average volume of 19,294,320. The company has a market cap of $8.33 billion, a P/E ratio of 25.97 and a beta of 1.48. Gerdau has a 12 month low of $2.83 and a 12 month high of $4.98. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29. The business's fifty day moving average price is $4.55 and its 200 day moving average price is $4.12.

Gerdau (NYSE:GGB - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share (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 for the quarter, compared to the consensus estimate of $3.36 billion. Equities analysts anticipate that Gerdau will post 0.55 EPS for the current year.

Insider Transactions at Gerdau

In related news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the business's stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $4.87, for a total transaction of $2,107,998.98. Following the transaction, the chief executive officer directly owned 432,854 shares of the company's stock, valued at approximately $2,107,998.98. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Clemir Uhlein sold 38,276 shares of Gerdau stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $4.51, for a total transaction of $172,624.76. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 794,184 shares of company stock worth $3,697,276 in the last ninety days. Insiders own 0.02% of the company's stock.

Hedge Funds Weigh In On Gerdau

Several institutional investors and hedge funds have recently made changes to their positions in the company. BSW Wealth Partners grew its holdings in Gerdau by 4.7% in the 4th quarter. BSW Wealth Partners now owns 53,697 shares of the basic materials company's stock valued at $198,000 after buying an additional 2,428 shares in the last quarter. Inspire Investing LLC increased its holdings in shares of Gerdau by 11.0% during the fourth quarter. Inspire Investing LLC now owns 26,397 shares of the basic materials company's stock worth $97,000 after purchasing an additional 2,607 shares during the period. Xponance LLC boosted its stake in shares of Gerdau by 16.1% in the fourth quarter. Xponance LLC now owns 20,570 shares of the basic materials company's stock valued at $76,000 after buying an additional 2,845 shares during the period. QRG Capital Management Inc. increased its stake in Gerdau by 11.9% during the 1st quarter. QRG Capital Management Inc. now owns 30,100 shares of the basic materials company's stock worth $109,000 after acquiring an additional 3,196 shares during the period. Finally, Xponance Inc. lifted its position in shares of Gerdau by 22.3% during the 3rd quarter. Xponance Inc. now owns 17,725 shares of the basic materials company's stock valued at $55,000 after acquiring an additional 3,230 shares during the period. Institutional investors and hedge funds own 1.49% of the company's stock.

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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