Short Interest in Gerdau S.A. (NYSE:GGB) Grows By 27.9%

Gerdau S.A. (NYSE:GGB) was the target of a large growth in short interest in April. As of April 15th, there was short interest totaling 5,599,233 shares, a growth of 27.9% from the March 31st total of 4,378,053 shares. Based on an average daily volume of 21,810,367 shares, the days-to-cover ratio is currently 0.3 days. Approximately 0.3% of the shares of the company are sold short.

Gerdau Price Performance

Shares of Gerdau stock traded down $0.05 during midday trading on Friday, hitting $4.53. 8,468,481 shares of the company traded hands, compared to its average volume of 19,859,744. The stock has a market cap of $9.04 billion, a price-to-earnings ratio of 28.22 and a beta of 1.44. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.40 and a current ratio of 2.76. The firm’s fifty day moving average price is $3.87 and its 200-day moving average price is $3.81. Gerdau has a 12 month low of $2.48 and a 12 month high of $4.66.

Gerdau (NYSE:GGB) last announced its quarterly earnings results on Monday, April 27th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.05). The company had revenue of $3.22 billion for the quarter, compared to the consensus estimate of $3.36 billion. Gerdau had a net margin of 2.40% and a return on equity of 6.76%. As a group, sell-side analysts forecast that Gerdau will post 0.51 earnings per share for the current year.

Gerdau Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Friday, May 15th will be issued a dividend of $0.0361 per share. This represents a $0.14 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Friday, May 15th. This is a positive change from Gerdau’s previous quarterly dividend of $0.02. Gerdau’s payout ratio is presently 37.50%.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Scotiabank upgraded shares of Gerdau from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 26th. Itau BBA Securities upgraded shares of Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 target price for the company in a research report on Wednesday, April 1st. Weiss Ratings restated a “hold (c)” rating on shares of Gerdau in a research report on Friday, March 27th. UBS Group restated a “buy” rating and issued a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday. Finally, JPMorgan Chase & Co. lifted their price target on shares of Gerdau from $5.00 to $5.50 and gave the company an “overweight” rating in a report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Gerdau presently has an average rating of “Moderate Buy” and a consensus target price of $5.12.

Insider Transactions at Gerdau

In other news, EVP Marcos Eduardo Fara Wahrhaftig sold 12,419 shares of the business’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $4.06, for a total value of $50,421.14. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Chia Yuan Wang sold 76,700 shares of the business’s stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $4.49, for a total transaction of $344,383.00. Following the completion of the transaction, the insider owned 92,195 shares of the company’s stock, valued at $413,955.55. The trade was a 45.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 324,002 shares of company stock worth $1,299,596. Corporate insiders own 0.02% of the company’s stock.

Institutional Investors Weigh In On Gerdau

A number of institutional investors have recently added to or reduced their stakes in the business. Sequoia Financial Advisors LLC grew its holdings in Gerdau by 5.7% during the 1st quarter. Sequoia Financial Advisors LLC now owns 76,494 shares of the basic materials company’s stock worth $276,000 after acquiring an additional 4,151 shares during the last quarter. Hsbc Holdings PLC grew its holdings in Gerdau by 4.2% during the 1st quarter. Hsbc Holdings PLC now owns 857,336 shares of the basic materials company’s stock worth $3,096,000 after acquiring an additional 34,564 shares during the last quarter. R Squared Ltd bought a new stake in Gerdau during the 1st quarter worth approximately $104,000. QRG Capital Management Inc. grew its holdings in Gerdau by 11.9% during the 1st quarter. QRG Capital Management Inc. now owns 30,100 shares of the basic materials company’s stock worth $109,000 after acquiring an additional 3,196 shares during the last quarter. Finally, SmartHarvest Portfolios LLC bought a new stake in Gerdau during the 1st quarter worth approximately $43,000. 1.49% of the stock is owned by institutional investors.

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.