Gerdau (NYSE:GGB) Upgraded to “Overweight” by JPMorgan Chase & Co.

JPMorgan Chase & Co. upgraded shares of Gerdau (NYSE:GGB) from a neutral rating to an overweight rating in a research report released on Monday morning, Marketbeat Ratings reports. The brokerage currently has $6.00 price objective on the basic materials company’s stock, up from their previous price objective of $5.00.

Gerdau Price Performance

Shares of NYSE:GGB opened at $3.57 on Monday. The company has a quick ratio of 1.24, a current ratio of 2.59 and a debt-to-equity ratio of 0.20. Gerdau has a fifty-two week low of $3.42 and a fifty-two week high of $5.13. The firm has a 50-day simple moving average of $4.32 and a 200 day simple moving average of $4.47. The company has a market cap of $6.27 billion, a PE ratio of 4.25 and a beta of 1.73.

Gerdau’s stock is set to split on the morning of Tuesday, April 30th. The 6-5 split was announced on Tuesday, April 30th. The newly created shares will be distributed to shareholders after the market closes on Tuesday, April 30th.

Gerdau (NYSE:GGB) last announced its quarterly earnings data on Thursday, March 28th. The basic materials company reported $0.07 earnings per share for the quarter. Gerdau had a net margin of 10.80% and a return on equity of 15.05%. The business had revenue of $2.97 billion during the quarter. On average, sell-side analysts anticipate that Gerdau will post 0.56 EPS for the current year.

Gerdau Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 19th. Shareholders of record on Tuesday, March 5th were given a $0.0202 dividend. This represents a $0.08 annualized dividend and a yield of 2.27%. The ex-dividend date was Monday, March 4th. Gerdau’s dividend payout ratio (DPR) is 9.52%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Clear Street Markets LLC bought a new position in Gerdau in the 4th quarter worth about $38,000. Atlas Capital Advisors LLC raised its holdings in shares of Gerdau by 424.8% during the fourth quarter. Atlas Capital Advisors LLC now owns 7,353 shares of the basic materials company’s stock valued at $41,000 after acquiring an additional 5,952 shares during the period. Belpointe Asset Management LLC acquired a new stake in shares of Gerdau during the first quarter valued at approximately $37,000. Fortis Capital Advisors LLC acquired a new stake in shares of Gerdau during the first quarter valued at approximately $37,000. Finally, Blue Trust Inc. raised its holdings in shares of Gerdau by 175.0% during the fourth quarter. Blue Trust Inc. now owns 8,074 shares of the basic materials company’s stock valued at $39,000 after acquiring an additional 5,138 shares during the period. Institutional investors own 1.49% of the company’s stock.

About Gerdau

Gerdau SA, together with its subsidiaries, operates as a steel producer company. It operates through Brazil Business, North America Business, South America Business, and Special Steel Business divisions. The company 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.