Gerdau (NYSE:GGB) Upgraded at Scotiabank

Scotiabank upgraded shares of Gerdau (NYSE:GGB) from a hold rating to a strong-buy rating in a research report sent to investors on Thursday,Zacks.com reports.

Several other research firms have also recently commented on GGB. UBS Group restated a “buy” rating and issued a $4.60 target price (up from $4.00) on shares of Gerdau in a research report on Monday, December 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $4.60.

Gerdau Stock Performance

Shares of GGB opened at $3.42 on Thursday. Gerdau has a 1 year low of $2.27 and a 1 year high of $4.66. The company has a market cap of $6.82 billion, a price-to-earnings ratio of 28.46, a price-to-earnings-growth ratio of 0.97 and a beta of 1.46. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.40 and a current ratio of 2.89. The firm has a fifty day moving average of $3.94 and a 200-day moving average of $3.65.

Gerdau (NYSE:GGB) last released its quarterly earnings data on Tuesday, February 24th. The basic materials company reported $0.07 earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.04). The firm had revenue of $3.08 billion during the quarter, compared to analyst estimates of $3.12 billion. Gerdau had a return on equity of 6.20% and a net margin of 1.93%. As a group, equities analysts anticipate that Gerdau will post 0.46 earnings per share for the current year.

Gerdau Cuts Dividend

The business 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. This represents a $0.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Thursday, March 12th. Gerdau’s payout ratio is currently 50.00%.

Insiders Place Their Bets

In related news, Chairman Guilherme Chagas G. Johannpeter sold 85,607 shares of the company’s stock in a transaction dated 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 this hyperlink. 0.02% of the stock is owned by insiders.

Hedge Funds Weigh In On Gerdau

Several large investors have recently bought and sold shares of the stock. Bank of America Corp DE raised its position in shares of Gerdau by 162.6% during the 2nd quarter. Bank of America Corp DE now owns 12,984,389 shares of the basic materials company’s stock worth $37,914,000 after buying an additional 8,039,814 shares in the last quarter. Donald Smith & CO. Inc. boosted its holdings in shares of Gerdau by 49.2% in the fourth quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company’s stock valued at $89,341,000 after acquiring an additional 7,982,296 shares in the last quarter. Causeway Capital Management LLC increased its stake 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 valued at $22,287,000 after acquiring an additional 4,519,092 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake 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 valued at $6,657,000 after acquiring an additional 2,089,675 shares during the period. Finally, Jump Financial LLC bought a new stake in Gerdau during the fourth quarter worth approximately $7,400,000. Institutional investors and hedge funds own 1.49% of the company’s stock.

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.