Itau BBA Securities Upgrades Gerdau (NYSE:GGB) to Outperform

Gerdau (NYSE:GGB) was upgraded by analysts at Itau BBA Securities from a “market perform” rating to an “outperform” rating in a report released on Wednesday, Marketbeat Ratings reports. The firm presently has a $4.60 price objective on the basic materials company’s stock. Itau BBA Securities’ price objective points to a potential upside of 21.85% from the company’s previous close.

Other equities analysts have also recently issued research reports about the company. Scotiabank raised Gerdau from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a research note on Friday, March 27th. Finally, UBS Group reiterated a “buy” rating and set a $4.60 target price (up from $4.00) on shares of Gerdau in a research report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Gerdau currently has a consensus rating of “Moderate Buy” and a consensus target price of $4.60.

Gerdau Stock Down 0.4%

Gerdau stock opened at $3.78 on Wednesday. The company has a quick ratio of 1.40, a current ratio of 2.89 and a debt-to-equity ratio of 0.26. The firm has a market cap of $7.54 billion, a price-to-earnings ratio of 31.46, a price-to-earnings-growth ratio of 1.08 and a beta of 1.44. The business’s 50-day moving average price is $3.90 and its 200 day moving average price is $3.67. Gerdau has a 52 week low of $2.27 and a 52 week high of $4.66.

Gerdau (NYSE:GGB) last posted its 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 firm had revenue of $3.08 billion during the quarter, compared to analyst estimates of $3.12 billion. As a group, sell-side analysts anticipate that Gerdau will post 0.46 earnings per share for the current year.

Insider Activity at Gerdau

In other Gerdau news, Chairman Guilherme Chagas G. Johannpeter sold 85,607 shares of the business’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $3.29, for a total value of $281,647.03. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.02% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC grew its holdings in Gerdau by 65.9% during the 1st quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company’s stock worth $1,656,000 after acquiring an additional 231,588 shares in the last quarter. Millennium Management LLC lifted its position in shares of Gerdau by 54.6% during the 1st quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock worth $12,393,000 after buying an additional 1,541,311 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Gerdau by 821.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,344,175 shares of the basic materials company’s stock worth $6,657,000 after purchasing an additional 2,089,675 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Gerdau in the 2nd quarter valued at $51,000. Finally, Creative Planning raised its holdings in shares of Gerdau by 88.8% in the second quarter. Creative Planning now owns 70,079 shares of the basic materials company’s stock valued at $205,000 after buying an additional 32,961 shares during the last quarter. 1.49% of the stock is currently 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.