Short Interest in Gerdau S.A. (NYSE:GGB) Declines By 81.9%

Gerdau S.A. (NYSE:GGB) was the target of a significant decrease in short interest in February. As of February 13th, there was short interest totaling 4,754,991 shares, a decrease of 81.9% from the January 29th total of 26,236,663 shares. Currently, 0.2% of the company’s stock are short sold. Based on an average trading volume of 36,541,488 shares, the days-to-cover ratio is currently 0.1 days. Based on an average trading volume of 36,541,488 shares, the days-to-cover ratio is currently 0.1 days. Currently, 0.2% of the company’s stock are short sold.

Hedge Funds Weigh In On Gerdau

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GGB. Capital International Investors raised its position in shares of Gerdau by 1.9% in the third quarter. Capital International Investors now owns 31,046,243 shares of the basic materials company’s stock valued at $96,243,000 after purchasing an additional 581,958 shares during the period. Donald Smith & CO. Inc. grew its stake in Gerdau by 49.2% in the 4th quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company’s stock valued at $89,341,000 after buying an additional 7,982,296 shares in the last quarter. Aquamarine Financial Cayman Ltd raised its holdings in Gerdau by 9.7% during the 4th quarter. Aquamarine Financial Cayman Ltd now owns 19,526,171 shares of the basic materials company’s stock valued at $72,052,000 after acquiring an additional 1,724,943 shares during the period. Bank of America Corp DE raised its holdings in Gerdau by 22.4% during the 3rd quarter. Bank of America Corp DE now owns 15,894,871 shares of the basic materials company’s stock valued at $49,274,000 after acquiring an additional 2,910,482 shares during the period. Finally, Causeway Capital Management LLC lifted its position in shares of Gerdau by 169.2% during the third quarter. Causeway Capital Management LLC now owns 7,189,270 shares of the basic materials company’s stock worth $22,287,000 after acquiring an additional 4,519,092 shares in the last quarter. Institutional investors own 1.49% of the company’s stock.

Analyst Ratings Changes

Several research analysts have issued reports on the company. Zacks Research upgraded Gerdau from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 18th. UBS Group reaffirmed 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. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a report on Monday, December 29th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Gerdau currently has an average rating of “Hold” and a consensus price target of $4.60.

Gerdau Stock Performance

Shares of Gerdau stock traded down $0.04 during mid-day trading on Friday, hitting $4.04. 10,771,988 shares of the stock were exchanged, compared to its average volume of 24,821,972. Gerdau has a 12 month low of $2.27 and a 12 month high of $4.66. The company has a 50-day simple moving average of $4.09 and a 200 day simple moving average of $3.59. The company has a market capitalization of $8.06 billion, a P/E ratio of 33.63, a P/E/G ratio of 1.15 and a beta of 1.46. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.47 and a current ratio of 2.89.

Gerdau (NYSE:GGB) last posted its quarterly earnings results on Monday, February 23rd. The basic materials company reported $0.07 earnings per share 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 company had revenue of $3.08 billion for the quarter, compared to the consensus estimate of $3.12 billion. Sell-side analysts anticipate that Gerdau will post 0.46 earnings per share for the current fiscal year.

Gerdau Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Investors of record on Thursday, March 12th will be paid a $0.0194 dividend. This represents a $0.08 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Thursday, March 12th. Gerdau’s payout ratio is currently 166.67%.

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.