Gerdau (NYSE:GGB) Trading Up 5.2% – What’s Next?

Gerdau S.A. (NYSE:GGB) shares traded up 5.2% on Thursday . The company traded as high as $3.01 and last traded at $2.97. 2,920,556 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 9,549,987 shares. The stock had previously closed at $2.82.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. UBS Group cut their target price on Gerdau from $3.30 to $2.90 and set a “neutral” rating for the company in a research report on Wednesday, April 30th. Bank of America restated a “neutral” rating on shares of Gerdau in a research report on Monday, April 7th.

Gerdau Price Performance

The stock has a market capitalization of $6.17 billion, a price-to-earnings ratio of 6.91 and a beta of 1.38. The company has a quick ratio of 1.53, a current ratio of 2.98 and a debt-to-equity ratio of 0.21. The business has a 50-day simple moving average of $2.65 and a two-hundred day simple moving average of $2.90.

Gerdau Increases Dividend

The company also recently announced a dividend, which was paid on Tuesday, May 27th. Shareholders of record on Tuesday, May 13th were given a $0.0188 dividend. This represents a yield of 2.95%. This is an increase from Gerdau’s previous dividend of $0.00. The ex-dividend date of this dividend was Monday, May 12th. Gerdau’s dividend payout ratio is 24.14%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Inspire Investing LLC bought a new position in shares of Gerdau in the first quarter valued at $46,000. Kawa Capital Management Inc bought a new position in shares of Gerdau in the first quarter valued at $6,011,000. Strs Ohio bought a new position in shares of Gerdau in the first quarter valued at $737,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Gerdau by 821.1% in 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 valued at $6,657,000 after buying an additional 2,089,675 shares in the last quarter. Finally, Millennium Management LLC increased its holdings in shares of Gerdau by 54.6% in the first quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock valued at $12,393,000 after buying an additional 1,541,311 shares in the last quarter. Institutional investors own 1.49% of the company’s stock.

About Gerdau

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.