Gerdau (NYSE:GGB) Stock Crosses Above 200-Day Moving Average – Should You Sell?

Gerdau S.A. (NYSE:GGB)’s share price crossed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $4.11 and traded as high as $4.28. Gerdau shares last traded at $4.2550, with a volume of 15,769,496 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on GGB shares. JPMorgan Chase & Co. raised their price objective on shares of Gerdau from $5.00 to $5.50 and gave the company an “overweight” rating in a research report on Monday, April 13th. Scotiabank upgraded Gerdau from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 26th. Weiss Ratings reissued a “hold (c)” rating on shares of Gerdau in a research note on Friday, March 27th. UBS Group reissued 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. Finally, Itau BBA Securities upgraded Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 price target on the stock in a research note on Wednesday, April 1st. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Gerdau presently has a consensus rating of “Moderate Buy” and a consensus target price of $5.12.

Gerdau Trading Down 1.6%

The company has a quick ratio of 1.29, a current ratio of 2.76 and a debt-to-equity ratio of 0.26. The business’s fifty day moving average is $4.55 and its 200 day moving average is $4.12. The stock has a market cap of $8.21 billion, a PE ratio of 25.66 and a beta of 1.48.

Gerdau (NYSE:GGB) last issued its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.05). Gerdau had a net margin of 2.40% and a return on equity of 6.76%. The company had revenue of $3.22 billion during the quarter, compared to analysts’ expectations of $3.36 billion. As a group, analysts predict that Gerdau S.A. will post 0.55 earnings per share for the current year.

Gerdau Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Friday, May 15th were paid a $0.0361 dividend. This represents a $0.14 annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend was Friday, May 15th. This is an increase from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s dividend payout ratio (DPR) is 75.00%.

Insider Buying and Selling

In other Gerdau news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $4.87, for a total value of $2,107,998.98. Following the sale, the chief executive officer owned 432,854 shares of the company’s stock, valued at approximately $2,107,998.98. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Clemir Uhlein sold 38,276 shares of the firm’s stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $4.51, for a total value of $172,624.76. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 794,184 shares of company stock valued at $3,697,276. 0.02% of the stock is owned by insiders.

Institutional Investors Weigh In On Gerdau

Large investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of 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 valued at $28,000 after purchasing an additional 3,931 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Gerdau by 95.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock worth $31,000 after purchasing an additional 5,216 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new position in shares of Gerdau during the 3rd quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Gerdau during the 3rd quarter worth approximately $34,000. Finally, Coldstream Capital Management Inc. purchased a new stake in Gerdau in the 3rd quarter valued at approximately $37,000. 1.49% of the stock is owned by institutional investors and hedge funds.

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.