Gerdau (NYSE:GGB) Given New $5.50 Price Target at JPMorgan Chase & Co.

Gerdau (NYSE:GGB) had its price target raised by JPMorgan Chase & Co. from $5.00 to $5.50 in a report issued on Monday morning,Benzinga reports. The brokerage currently has an overweight rating on the basic materials company’s stock.

Several other brokerages also recently issued reports on GGB. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a report on Friday, March 27th. Scotiabank raised shares of Gerdau from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 26th. UBS Group upped their price target on shares of Gerdau from $4.40 to $4.60 and gave the company a “buy” rating in a report on Thursday, April 2nd. Finally, Itau BBA Securities raised shares of 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. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $4.90.

Gerdau Stock Down 0.4%

Shares of NYSE GGB opened at $4.22 on Monday. Gerdau has a 12-month low of $2.46 and a 12-month high of $4.66. The company has a market capitalization of $8.42 billion, a PE ratio of 35.13, a price-to-earnings-growth ratio of 1.20 and a beta of 1.44. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.89 and a quick ratio of 1.40. The firm’s 50-day moving average is $3.84 and its two-hundred day moving average is $3.72.

Gerdau (NYSE:GGB) last announced its quarterly earnings results on Tuesday, February 24th. The basic materials company reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.04). Gerdau had a net margin of 1.93% and a return on equity of 6.20%. The business had revenue of $3.08 billion during the quarter, compared to analysts’ expectations of $3.12 billion. Equities analysts anticipate that Gerdau will post 0.46 EPS for the current fiscal year.

Gerdau Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 12th were paid a dividend of $0.0194 per share. The ex-dividend date of this dividend was Thursday, March 12th. This represents a $0.08 annualized dividend and a dividend yield of 1.8%. Gerdau’s dividend payout ratio is presently 50.00%.

Insider Activity

In related news, CEO Cunha Gustavo Werneck Da sold 50,000 shares of the company’s stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $4.01, for a total transaction of $200,500.00. Following the transaction, the chief executive officer owned 138,080 shares of the company’s stock, valued at approximately $553,700.80. This represents a 26.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Marcos Eduardo Fara Wahrhaftig sold 12,419 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $4.06, for a total transaction of $50,421.14. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 182,026 shares of company stock worth $668,568. 0.02% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Gerdau

Several institutional investors and hedge funds have recently bought and sold shares of GGB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position 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 purchasing an additional 3,931 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Gerdau by 95.3% during the second 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 during the last quarter. Wealthstream Advisors Inc. acquired a new position in Gerdau during the third quarter worth approximately $32,000. Aster Capital Management DIFC Ltd acquired a new position in Gerdau during the third quarter worth approximately $34,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in Gerdau during the third quarter worth approximately $34,000. Institutional investors and hedge funds own 1.49% of the company’s stock.

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.