Zacks Investment Research upgraded shares of Gerdau S.A. (NYSE:GGB) from a hold rating to a buy rating in a research note published on Monday, September 11th. The firm currently has $4.25 target price on the basic materials company’s stock.
According to Zacks, “Year to date, Gerdau's American Depository Receipts (ADR) have outperformed the industry. We believe that the company's product portfolio and manufacturing techniques will help it grow over the long term. Its international diversity provides support to the top line. Also, its strategy of disposing loss-making assets/businesses will enable it to focus on the profitable ones. Going forward, any investment by the government in infrastructure improvements will boost steel demand in these regions, thereby creating lucrative market conditions for steel producers like Gerdau. For 2017, Gerdau expects capital expenditure to be R$1.3 billion. Over the last 60 days, earnings estimates on the stock improved for both 2017 and 2018.”
Several other research analysts have also recently weighed in on GGB. Scotiabank upgraded shares of Gerdau from an underperform rating to a sector perform rating in a research note on Friday, June 9th. BidaskClub upgraded shares of Gerdau from a sell rating to a hold rating in a research report on Saturday, June 24th. J P Morgan Chase & Co upgraded shares of Gerdau from a neutral rating to an overweight rating in a research report on Friday, September 1st. Finally, Credit Suisse Group downgraded shares of Gerdau from an outperform rating to a neutral rating in a research report on Thursday, September 7th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average target price of $4.25.
Shares of Gerdau (NYSE:GGB) traded up 1.48% during trading on Monday, hitting $3.43. The stock had a trading volume of 4,061,805 shares. The company’s market capitalization is $5.86 billion. Gerdau has a 52 week low of $2.57 and a 52 week high of $4.39. The company’s 50 day moving average price is $3.66 and its 200 day moving average price is $3.32.
The firm also recently announced a quarterly dividend, which was paid on Monday, September 11th. Stockholders of record on Thursday, August 24th were issued a $0.005 dividend. The ex-dividend date of this dividend was Tuesday, August 22nd. This represents a $0.02 dividend on an annualized basis and a dividend yield of 0.58%. Gerdau’s dividend payout ratio (DPR) is presently -3.23%.
Several hedge funds have recently added to or reduced their stakes in GGB. BT Investment Management Ltd purchased a new position in shares of Gerdau during the 2nd quarter worth about $32,817,000. Banco BTG Pactual S.A. purchased a new position in shares of Gerdau during the 1st quarter worth about $27,600,000. Bank of America Corp DE boosted its stake in shares of Gerdau by 118.9% during the 1st quarter. Bank of America Corp DE now owns 5,409,654 shares of the basic materials company’s stock worth $18,663,000 after purchasing an additional 2,938,567 shares during the period. Morgan Stanley boosted its stake in shares of Gerdau by 416.0% during the 1st quarter. Morgan Stanley now owns 3,420,226 shares of the basic materials company’s stock worth $11,800,000 after purchasing an additional 2,757,360 shares during the period. Finally, Bogle Investment Management L P DE boosted its position in Gerdau by 75.8% in the 1st quarter. Bogle Investment Management L P DE now owns 2,950,179 shares of the basic materials company’s stock valued at $10,178,000 after buying an additional 1,272,226 shares during the period. 5.32% of the stock is owned by hedge funds and other institutional investors.
Gerdau SA (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela.
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