Gerdau (NYSE:GGB) Shares Up 3% – Here’s Why

Gerdau S.A. (NYSE:GGB) shares were up 3% during trading on Tuesday . The company traded as high as $2.92 and last traded at $2.93. Approximately 1,091,314 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 9,175,225 shares. The stock had previously closed at $2.84.

Analyst Ratings Changes

Separately, UBS Group initiated coverage on shares of Gerdau in a report on Wednesday, March 12th. They issued a “neutral” rating on the stock.

Gerdau Price Performance

The business has a fifty day moving average of $2.94 and a two-hundred day moving average of $3.13. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.53 and a current ratio of 2.98. The firm has a market capitalization of $5.99 billion, a price-to-earnings ratio of 6.70 and a beta of 1.69.

Gerdau (NYSE:GGB) last released its quarterly earnings data on Wednesday, February 19th. The basic materials company reported $0.06 EPS for the quarter, meeting the consensus estimate of $0.06. The firm had revenue of $2.88 billion for the quarter, compared to the consensus estimate of $2.66 billion. Gerdau had a net margin of 7.03% and a return on equity of 7.74%. As a group, research analysts predict that Gerdau S.A. will post 0.46 EPS for the current fiscal year.

Gerdau Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 21st. Shareholders of record on Friday, March 7th were given a dividend of $0.0175 per share. The ex-dividend date of this dividend was Friday, March 7th. This represents a $0.07 annualized dividend and a yield of 2.44%. Gerdau’s dividend payout ratio (DPR) is presently 13.95%.

Institutional Trading of Gerdau

Several hedge funds have recently added to or reduced their stakes in GGB. FMR LLC increased its position in Gerdau by 10.4% during the 4th quarter. FMR LLC now owns 98,194,996 shares of the basic materials company’s stock worth $282,802,000 after buying an additional 9,215,971 shares during the period. Two Sigma Advisers LP increased its position in Gerdau by 107.4% during the fourth quarter. Two Sigma Advisers LP now owns 12,645,660 shares of the basic materials company’s stock worth $36,420,000 after acquiring an additional 6,548,200 shares during the period. Bank of America Corp DE raised its stake in Gerdau by 130.6% in the 4th quarter. Bank of America Corp DE now owns 10,095,722 shares of the basic materials company’s stock worth $29,076,000 after purchasing an additional 5,718,323 shares in the last quarter. Two Sigma Investments LP boosted its holdings in Gerdau by 49.9% in the 4th quarter. Two Sigma Investments LP now owns 14,804,499 shares of the basic materials company’s stock valued at $42,637,000 after purchasing an additional 4,928,378 shares during the period. Finally, Optiver Holding B.V. acquired a new position in shares of Gerdau during the 4th quarter worth approximately $9,775,000. 1.49% of the stock is owned by institutional investors and hedge funds.

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.