Gerdau (GGB) Downgraded by ValuEngine to “Strong Sell”

ValuEngine cut shares of Gerdau (NYSE:GGB) from a sell rating to a strong sell rating in a report published on Saturday morning, ValuEngine reports.

Several other research analysts also recently commented on the stock. Zacks Investment Research downgraded shares of Gerdau from a hold rating to a sell rating in a report on Friday, March 15th. Scotiabank raised shares of Gerdau from a sector perform rating to an outperform rating in a report on Tuesday, December 18th. Two equities research analysts have rated the stock with a sell rating and five have issued a buy rating to the company’s stock. Gerdau presently has an average rating of Hold and an average target price of $4.50.

Shares of NYSE:GGB opened at $3.89 on Friday. The company has a quick ratio of 0.98, a current ratio of 2.06 and a debt-to-equity ratio of 0.50. Gerdau has a one year low of $3.37 and a one year high of $5.13. The firm has a market capitalization of $6.59 billion, a price-to-earnings ratio of 43.22, a PEG ratio of 1.19 and a beta of 2.01.

The company also recently declared a quarterly dividend, which was paid on Monday, March 25th. Shareholders of record on Monday, March 11th were issued a $0.0268 dividend. This represents a $0.11 annualized dividend and a yield of 2.76%. This is an increase from Gerdau’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Friday, March 8th. Gerdau’s dividend payout ratio (DPR) is presently 111.11%.

A number of large investors have recently made changes to their positions in the business. Deprince Race & Zollo Inc. boosted its holdings in Gerdau by 7.0% in the 4th quarter. Deprince Race & Zollo Inc. now owns 1,357,620 shares of the basic materials company’s stock valued at $5,105,000 after purchasing an additional 88,400 shares during the period. Millennium Management LLC boosted its holdings in Gerdau by 300.2% in the 4th quarter. Millennium Management LLC now owns 674,560 shares of the basic materials company’s stock valued at $2,536,000 after purchasing an additional 506,018 shares during the period. Jane Street Group LLC bought a new position in Gerdau in the 4th quarter valued at $1,144,000. OLD Mission Capital LLC bought a new position in Gerdau in the 4th quarter valued at $865,000. Finally, Nuveen Asset Management LLC bought a new position in Gerdau in the 4th quarter valued at $49,000. 7.44% of the stock is owned by hedge funds and other institutional investors.

Gerdau Company Profile

Gerdau SA provides steel-related products and services worldwide. It operates through four segments: Brazil Operations, North America Operations, South America Operations, and Special Steel Operations. The company offers semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles, which are used primarily in the construction and manufacturing industries; and drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire meshes, nails, and clamps, as well as mines and produces iron ore.

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Analyst Recommendations for Gerdau (NYSE:GGB)

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