Goldman Sachs Group Begins Coverage on Gerdau (GGB)

Equities researchers at Goldman Sachs Group assumed coverage on shares of Gerdau (NYSE:GGB) in a research note issued on Thursday. The firm set a “buy” rating on the basic materials company’s stock.

A number of other brokerages also recently commented on GGB. Bank of America restated a “buy” rating on shares of Gerdau in a research note on Thursday, August 16th. Zacks Investment Research upgraded Gerdau from a “hold” rating to a “buy” rating and set a $4.75 price objective for the company in a research note on Tuesday, October 16th. Finally, HSBC upgraded Gerdau from a “hold” rating to a “buy” rating in a research note on Monday, September 17th. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. Gerdau presently has an average rating of “Buy” and an average target price of $4.75.

Shares of GGB stock traded down $0.02 on Thursday, hitting $3.96. 2,175,954 shares of the stock traded hands, compared to its average volume of 11,932,069. The company has a current ratio of 2.42, a quick ratio of 1.43 and a debt-to-equity ratio of 0.60. The firm has a market cap of $6.76 billion, a P/E ratio of 43.94, a P/E/G ratio of 0.38 and a beta of 2.19. Gerdau has a 1-year low of $3.37 and a 1-year high of $5.32.

Gerdau (NYSE:GGB) last posted its quarterly earnings results on Wednesday, November 7th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter. The business had revenue of $3.26 billion for the quarter. Gerdau had a return on equity of 9.41% and a net margin of 0.80%. On average, research analysts forecast that Gerdau will post 0.42 EPS for the current fiscal year.

Institutional investors and hedge funds have recently modified their holdings of the stock. Stevens Capital Management LP bought a new position in Gerdau during the 2nd quarter worth $170,000. HRT Financial LLC bought a new position in shares of Gerdau in the second quarter worth $177,000. Verde Servicos Internacionais S.A. bought a new position in shares of Gerdau in the third quarter worth $213,000. Credit Agricole S A grew its stake in shares of Gerdau by 145.3% in the second quarter. Credit Agricole S A now owns 73,600 shares of the basic materials company’s stock worth $260,000 after purchasing an additional 43,600 shares in the last quarter. Finally, Crossmark Global Holdings Inc. grew its stake in shares of Gerdau by 16.2% in the third quarter. Crossmark Global Holdings Inc. now owns 93,019 shares of the basic materials company’s stock worth $392,000 after purchasing an additional 12,980 shares in the last quarter. Hedge funds and other institutional investors own 5.41% of the company’s stock.

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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