Gerdau (NYSE:GGB) Hits New 52-Week High – Here’s Why

Gerdau S.A. (NYSE:GGB) shares hit a new 52-week high on Tuesday . The stock traded as high as $4.99 and last traded at $4.9850, with a volume of 2877759 shares. The stock had previously closed at $4.83.

Analysts Set New Price Targets

A number of research firms recently issued reports on GGB. Itau BBA Securities raised Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 price target on the stock in a report on Wednesday, April 1st. UBS Group reaffirmed a “buy” rating and set a $5.25 price objective (up from $4.60) on shares of Gerdau in a research note on Wednesday, April 29th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a research report on Wednesday, June 24th. Finally, JPMorgan Chase & Co. lifted their target price on Gerdau from $5.50 to $6.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $5.28.

Gerdau Price Performance

The company has a market cap of $9.89 billion, a price-to-earnings ratio of 30.97 and a beta of 1.50. The company has a current ratio of 2.76, a quick ratio of 1.29 and a debt-to-equity ratio of 0.26. The company’s 50 day moving average price is $4.51 and its 200 day moving average price is $4.24.

Gerdau (NYSE:GGB) last issued its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a net margin of 2.40% and a return on equity of 6.76%. The firm had revenue of $3.22 billion during the quarter, compared to analysts’ expectations of $3.36 billion. Equities research analysts forecast that Gerdau S.A. will post 0.53 earnings per share for the current year.

Insider Activity

In other Gerdau news, EVP Mauricio Metz sold 7,000 shares of Gerdau stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total value of $33,950.00. Following the sale, the executive vice president owned 22,536 shares of the company’s stock, valued at approximately $109,299.60. The trade was a 23.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Cunha Gustavo Werneck Da bought 165,224 shares of the company’s stock in a transaction on Friday, June 12th. The shares were acquired at an average price of $4.73 per share, for a total transaction of $781,509.52. Following the transaction, the chief executive officer directly owned 165,224 shares in the company, valued at $781,509.52. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 555,789 shares of company stock worth $2,679,327 in the last three months. 0.02% of the stock is currently owned by company insiders.

Institutional Trading of Gerdau

A number of institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Gerdau by 68.9% during 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 during the period. EverSource Wealth Advisors LLC raised its position in Gerdau by 95.3% in the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock worth $31,000 after acquiring an additional 5,216 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Gerdau in the third quarter valued at $34,000. Coldstream Capital Management Inc. acquired a new stake in Gerdau in the third quarter valued at $37,000. Finally, Greenspring Advisors LLC purchased a new stake in shares of Gerdau during the 4th quarter worth $40,000. 1.49% of the stock is currently owned by hedge funds and other institutional investors.

About Gerdau

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.