Gerdau (NYSE:GGB) Sees Large Volume Increase – What’s Next?

by · The Cerbat Gem

Shares of Gerdau S.A. (NYSE:GGB – Get Free Report) saw strong trading volume on Thursday . 8,919,435 shares traded hands during trading, an increase of 12% from the previous session’s volume of 7,929,212 shares.The stock last traded at $3.16 and had previously closed at $3.22.

Gerdau Stock Performance

The company has a market cap of $6.70 billion, a P/E ratio of 5.27 and a beta of 1.74. The business’s 50 day simple moving average is $3.32 and its 200 day simple moving average is $3.37. The company has a current ratio of 2.83, a quick ratio of 1.36 and a debt-to-equity ratio of 0.21.

Gerdau (NYSE:GGB – Get Free Report) last released its earnings results on Wednesday, July 31st. The basic materials company reported $0.09 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.02. Gerdau had a net margin of 7.88% and a return on equity of 8.43%. The company had revenue of $3.19 billion for the quarter, compared to analysts’ expectations of $3.01 billion. Sell-side analysts predict that Gerdau S.A. will post 0.61 earnings per share for the current fiscal year.

Gerdau Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 27th. Shareholders of record on Tuesday, August 13th were issued a dividend of $0.055 per share. This is a positive change from Gerdau’s previous quarterly dividend of $0.06. This represents a $0.22 dividend on an annualized basis and a yield of 6.92%. The ex-dividend date of this dividend was Tuesday, August 13th. Gerdau’s dividend payout ratio (DPR) is 13.11%.

Institutional Investors Weigh In On Gerdau

A number of institutional investors have recently added to or reduced their stakes in the stock. Abacus Wealth Partners LLC grew its holdings in Gerdau by 23.2% during the 3rd quarter. Abacus Wealth Partners LLC now owns 17,173 shares of the basic materials company’s stock valued at $60,000 after buying an additional 3,235 shares in the last quarter. QRG Capital Management Inc. grew its holdings in shares of Gerdau by 5.5% in the second quarter. QRG Capital Management Inc. now owns 70,404 shares of the basic materials company’s stock valued at $232,000 after purchasing an additional 3,640 shares in the last quarter. Inspire Advisors LLC grew its holdings in shares of Gerdau by 16.0% in the first quarter. Inspire Advisors LLC now owns 33,987 shares of the basic materials company’s stock valued at $150,000 after purchasing an additional 4,678 shares in the last quarter. Johnson Investment Counsel Inc. grew its holdings in shares of Gerdau by 20.0% in the second quarter. Johnson Investment Counsel Inc. now owns 32,760 shares of the basic materials company’s stock valued at $108,000 after purchasing an additional 5,460 shares in the last quarter. Finally, Sequoia Financial Advisors LLC grew its holdings in shares of Gerdau by 27.6% in the second quarter. Sequoia Financial Advisors LLC now owns 30,308 shares of the basic materials company’s stock valued at $100,000 after purchasing an additional 6,558 shares in the last quarter. 1.49% of the stock is owned by hedge funds and other institutional investors.

About Gerdau

(Get Free Report)

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

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