Zacks Investment Research downgraded shares of Gerdau S.A. (NYSE:GGB) from a buy rating to a hold rating in a report issued on Wednesday.
According to Zacks, “Year to date, Gerdau's American Depository Receipts (ADR) have outperformed the industry. We believe that the company's product portfolio, manufacturing techniques and international diversity will help it grow over the long term. 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 Brazil, thereby creating favorable conditions for the company. However, it is exposed to risks arising from higher raw material costs, foreign currency fluctuations, huge debt levels and cyclical nature of the industry. In second-quarter 2017, the company's adjusted net income declined 19.1% year over year due to 10.6% fall in revenues, forex woes and higher income tax expenses. Also, the stock is currently overvalued compared with the industry.”
A number of other research firms have also recently commented on GGB. BidaskClub cut shares of Gerdau from a buy rating to a hold rating in a report on Monday, July 24th. Scotiabank upgraded shares of Gerdau from an underperform rating to a sector perform rating in a report on Friday, June 9th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the company’s stock. The company presently has an average rating of Hold and a consensus price target of $4.00.
Shares of Gerdau (NYSE:GGB) opened at 3.52 on Wednesday. The company’s market cap is $6.02 billion. The company has a 50 day moving average of $3.39 and a 200-day moving average of $3.38. Gerdau has a 12-month low of $2.47 and a 12-month high of $4.39.
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The business also recently announced a quarterly dividend, which will be paid on Monday, September 11th. Investors of record on Thursday, August 24th will be issued a $0.005 dividend. This represents a $0.02 annualized dividend and a yield of 0.57%. The ex-dividend date of this dividend is Tuesday, August 22nd.
Large investors have recently modified their holdings of the company. Global X Management Co. LLC boosted its stake in shares of Gerdau by 6.2% in the second quarter. Global X Management Co. LLC now owns 34,134 shares of the basic materials company’s stock valued at $104,000 after buying an additional 1,997 shares in the last quarter. Stevens Capital Management LP bought a new stake in shares of Gerdau during the second quarter valued at about $104,000. Wright Investors Service Inc. bought a new stake in shares of Gerdau during the first quarter valued at about $113,000. AQR Capital Management LLC boosted its stake in shares of Gerdau by 5.8% in the fourth quarter. AQR Capital Management LLC now owns 38,761 shares of the basic materials company’s stock valued at $122,000 after buying an additional 2,111 shares in the last quarter. Finally, Lazard Asset Management LLC boosted its stake in shares of Gerdau by 108.5% in the second quarter. Lazard Asset Management LLC now owns 41,700 shares of the basic materials company’s stock valued at $127,000 after buying an additional 21,700 shares in the last quarter. Institutional investors own 5.04% of the company’s stock.
Gerdau Company Profile
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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