Short Interest in Gerdau S.A. (NYSE:GGB) Grows By 82.8%

Key Points

• Gerdau S.A. experienced a significant increase in short interest, rising by 82.8% from 10,210,000 to 18,660,000 shares in July.
• The company reported an EPS of $0.08 for the last quarter, falling short of the consensus estimate of $0.09, with revenues of $3.13 billion compared to the expected $3.22 billion.
• Gerdau announced a quarterly dividend increase to $0.0216 per share, representing an annualized yield of 3.0%, with payment scheduled for August 25th.

Gerdau S.A. (NYSE:GGB - Get Free Report) was the target of a significant growth in short interest in the month of July. As of July 31st, there was short interest totaling 18,660,000 shares, agrowthof82.8% from the July 15th total of 10,210,000 shares. Based on an average daily trading volume, of 14,070,000 shares, the short-interest ratio is presently 1.3 days. Approximately1.5% of the company's shares are short sold. Approximately1.5% of the company's shares are short sold. Based on an average daily trading volume, of 14,070,000 shares, the short-interest ratio is presently 1.3 days.

Gerdau Stock Down 2.2%

Shares of Gerdau stock traded down $0.0650 during trading hours on Tuesday, reaching $2.9250. 9,460,735 shares of the company's stock were exchanged, compared to its average volume of 9,973,238. The stock has a market cap of $5.84 billion, a P/E ratio of 10.09, a P/E/G ratio of 1.29 and a beta of 1.36. The company has a 50 day moving average of $2.97 and a two-hundred day moving average of $2.85. The company has a current ratio of 2.89, a quick ratio of 1.50 and a debt-to-equity ratio of 0.30. Gerdau has a fifty-two week low of $2.27 and a fifty-two week high of $3.62.

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

Gerdau Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 25th. Shareholders of record on Wednesday, August 13th will be given a dividend of $0.0216 per share. This represents a $0.09 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Wednesday, August 13th. This is a boost from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio (DPR) is currently 27.59%.

Wall Street Analyst Weigh In

Separately, UBS Group upgraded shares of Gerdau from a "neutral" rating to a "buy" rating and upped their target price for the company 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 assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $3.80.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Gerdau by 68.9% during the 2nd 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 during the period. Park Avenue Securities LLC acquired a new stake in shares of Gerdau in the 2nd quarter valued at $29,000. EverSource Wealth Advisors LLC increased its stake 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 valued at $31,000 after purchasing an additional 5,216 shares during the last quarter. Wolverine Trading LLC acquired a new position in shares of Gerdau during the 4th quarter worth $37,000. Finally, Xponance Inc. acquired a new position in shares of Gerdau during the 1st quarter worth $40,000. Institutional investors and hedge funds 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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