Gerdau (NYSE:GGB) Shares Cross Above 200-Day Moving Average – Here’s Why

Gerdau S.A. (NYSE:GGB)’s share price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $3.23 and traded as high as $3.71. Gerdau shares last traded at $3.6750, with a volume of 9,256,096 shares.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on GGB. UBS Group reissued a “buy” rating and set a $4.60 price objective (up previously from $4.00) on shares of Gerdau in a research note on Monday, December 15th. Zacks Research upgraded Gerdau from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 18th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research report on Monday, December 22nd. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $4.60.

Gerdau Price Performance

The company has a market capitalization of $7.34 billion, a price-to-earnings ratio of 13.61, a price-to-earnings-growth ratio of 2.14 and a beta of 1.49. The company has a quick ratio of 1.47, a current ratio of 2.70 and a debt-to-equity ratio of 0.30. The company has a 50 day simple moving average of $3.56 and a 200 day simple moving average of $3.23.

Gerdau (NYSE:GGB) last posted its quarterly earnings results on Thursday, October 30th. The basic materials company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.01). The business had revenue of $3.38 billion during the quarter, compared to analysts’ expectations of $17.81 billion. Gerdau had a net margin of 4.38% and a return on equity of 5.92%. As a group, research analysts predict that Gerdau S.A. will post 0.46 EPS for the current year.

Gerdau Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Wednesday, November 12th were issued a dividend of $0.0521 per share. This represents a $0.21 annualized dividend and a dividend yield of 5.7%. The ex-dividend date was Wednesday, November 12th. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s dividend payout ratio (DPR) is presently 74.07%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of 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 purchasing an additional 3,931 shares in the last quarter. Park Avenue Securities LLC acquired a new position in Gerdau during the 2nd quarter worth approximately $29,000. Wealthstream Advisors Inc. purchased a new position in Gerdau in the 3rd quarter worth approximately $32,000. EverSource Wealth Advisors LLC grew 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 valued at $31,000 after acquiring an additional 5,216 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd acquired a new stake in Gerdau in the third quarter valued at approximately $34,000. 1.49% of the stock is owned by hedge funds and other institutional investors.

Gerdau Company Profile

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.