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 recipient of a significant increase in short interest during the month of July. As of July 31st, there was short interest totaling 18,660,000 shares, anincreaseof82.8% from the July 15th total of 10,210,000 shares. Currently,1.5% of the shares of the company are sold short. Based on an average daily trading volume, of 14,070,000 shares, the short-interest ratio is currently 1.3 days. Based on an average daily trading volume, of 14,070,000 shares, the short-interest ratio is currently 1.3 days. Currently,1.5% of the shares of the company are sold short.

Gerdau Stock Performance

Gerdau stock traded up $0.0750 during midday trading on Friday, hitting $2.9750. 5,801,569 shares of the company were exchanged, compared to its average volume of 9,440,254. The firm has a market capitalization of $5.94 billion, a PE ratio of 10.26, a price-to-earnings-growth ratio of 1.29 and a beta of 1.36. Gerdau has a fifty-two week low of $2.27 and a fifty-two week high of $3.62. The business has a fifty day simple moving average of $2.97 and a two-hundred day simple moving average of $2.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.50 and a current ratio of 2.89.

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

Gerdau Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 25th. Shareholders of record on Wednesday, August 13th will be issued a $0.0216 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This is an increase from Gerdau's previous quarterly dividend of $0.02. This represents a $0.09 annualized dividend and a yield of 2.9%. Gerdau's dividend payout ratio is 27.59%.

Analyst Upgrades and Downgrades

Separately, UBS Group upgraded 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 analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Gerdau has an average rating of "Moderate Buy" and an average target price of $3.80.

Institutional Trading of Gerdau

Institutional investors have recently bought and sold shares of the business. Jane Street Group LLC grew its holdings in Gerdau by 221.1% in the fourth quarter. Jane Street Group LLC now owns 1,236,271 shares of the basic materials company's stock valued at $3,560,000 after purchasing an additional 851,203 shares during the period. Cambridge Investment Research Advisors Inc. grew its holdings in Gerdau by 80.4% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 85,205 shares of the basic materials company's stock valued at $242,000 after purchasing an additional 37,969 shares during the period. Robeco Institutional Asset Management B.V. grew its holdings in Gerdau by 789.5% in the first quarter. Robeco Institutional Asset Management B.V. now owns 455,053 shares of the basic materials company's stock valued at $1,292,000 after purchasing an additional 403,894 shares during the period. Northern Trust Corp grew its holdings in Gerdau by 34.8% in 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. Finally, Massachusetts Financial Services Co. MA grew its holdings in Gerdau by 147.9% in the first quarter. Massachusetts Financial Services Co. MA now owns 392,274 shares of the basic materials company's stock valued at $1,114,000 after purchasing an additional 234,015 shares during the period. 1.49% of the stock is owned by institutional investors and hedge funds.

About Gerdau

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.