Gerdau S.A. [NYSE: GGB] traded at a high on 11/24/20, posting a 4.44 gain after which it closed the day’ session at $4.23. The company report on November 17, 2020 that Gerdau S.A. Announces Commencement Of Cash Tender Offer Up To A Maximum Amount Of U.S.$230,000,000 Aggregate Consideration For Certain Of The Outstanding 5.750% Bonds Due 2021, 4.750% Bonds Due 2023, 5.893% Bonds Due 2024 And 4.875% Bonds Due 2027.
Gerdau S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) (“Gerdau” or the “Company”) announced the commencement of an offer to purchase for cash (the “Tender Offer”) up to a maximum amount of U.S. $230,000,000 (the “Aggregate Maximum Tender Consideration”) (including the Early Tender Payment, if applicable) of the outstanding 5.750% Bonds due 2021 (the “2021 Bonds”) issued by Gerdau Trade Inc. (“GTI”), 4.750% Bonds due 2023 (the “2023 Bonds”) issued by GTI, 5.893% Bonds due 2024 (the “2024 Bonds”) issued jointly by Gerdau Holdings Inc. (“GHI”) and GTL Trade Finance Inc. (“GTL”), and the 4.875% Bonds due 2027 (the “2027 Bonds”, and together with the 2021 Bonds, the 2023 Bonds and the 2024 Bonds, the “Bonds” and each, a “series” of Bonds) issued by GTI (GTI, GHI and GTL, collectively, the “Issuers”).
The Tender Offer is being made pursuant to the offer to purchase dated November 16, 2020 (the “Offer to Purchase”). The principal purpose of the Tender Offer is for the Issuers to manage their liabilities.
The results of the trading session contributed to over 7146387 shares changing hands. Over the past one week, the price volatility of Gerdau S.A. stands at 2.87% while the volatility over the past one month is 3.65%.
The market cap for GGB stock reached $6.90 billion, with 1.70 billion shares outstanding and 1.09 billion shares in the current float. Compared to the average trading volume of 5.24M shares, GGB reached a trading volume of 7146387 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Gerdau S.A. [GGB]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GGB shares is $5.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GGB stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
JP Morgan have made an estimate for Gerdau S.A. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on August 19, 2020. The new note on the price target was released on July 24, 2020, representing the official price target for Gerdau S.A. stock.
The Average True Range (ATR) for Gerdau S.A. is set at 0.15, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 0.92. The Price to Book ratio for the last quarter was 1.22, with the Price to Cash per share for the same quarter was set at 0.83. Price to Free Cash Flow for GGB in the course of the last twelve months was 19.58 with Quick ratio for the last quarter at 1.40.
How has GGB stock performed recently?
Gerdau S.A. [GGB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.22. With this latest performance, GGB shares gained by 3.17% in over the last four-week period, additionally plugging by 67.86% over the last 6 months – not to mention a rise of 7.63% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GGB stock in for the last two-week period is set at 61.64, with the RSI for the last a single of trading hit 65.66, and the three-weeks RSI is set at 58.58 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 3.92, while it was recorded at 4.03 for the last single week of trading, and 3.17 for the last 200 days.
Gerdau S.A. [GGB]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Gerdau S.A. [GGB] shares currently have an operating margin of +6.94 and a Gross Margin at +10.60. Gerdau S.A.’s Net Margin is presently recorded at +3.04.
Return on Total Capital for GGB is now 6.48, given the latest momentum, and Return on Invested Capital for the company is 2.98. Return on Equity for this stock inclined to 4.57, with Return on Assets sitting at 2.29. When it comes to the capital structure of this company, Gerdau S.A. [GGB] has a Total Debt to Total Equity ratio set at 62.53. Additionally, GGB Total Debt to Total Capital is recorded at 38.47, with Total Debt to Total Assets ending up at 31.21. Long-Term Debt to Equity for the company is recorded at 55.98, with the Long-Term Debt to Total Capital now at 34.44.
Receivables Turnover for the company is 10.12 with a Total Asset Turnover recorded at a value of 0.75.Gerdau S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 2.40.
Earnings analysis for Gerdau S.A. [GGB]
With the latest financial reports released by the company, Gerdau S.A. posted 0.05/share EPS, while the average EPS was predicted by analysts to be reported at 0.22/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -77.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GGB. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Gerdau S.A. go to 3.81%.
Insider trade positions for Gerdau S.A. [GGB]
There are presently around $1,111 million, or 34.90% of GGB stock, in the hands of institutional investors. The top three institutional holders of GGB stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 128,285,076, which is approximately 0.717% of the company’s market cap and around 32.70% of the total institutional ownership; JPMORGAN CHASE & CO, holding 24,030,995 shares of the stock with an approximate value of $101.65 million in GGB stocks shares; and CONTRARIAN CAPITAL MANAGEMENT, L.L.C., currently with $87.41 million in GGB stock with ownership of nearly -2.273% of the company’s market capitalization.
Positions in Gerdau S.A. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 60 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 24,627,169 shares. Additionally, 60 investors decreased positions by around 19,936,126 shares, while 22 investors held positions by with 218,050,429 shares. The mentioned changes placed institutional holdings at 262,613,724 shares, according to the latest SEC report filing. GGB stock had 18 new institutional investments in for a total of 2,060,412 shares, while 11 institutional investors sold positions of 3,692,700 shares during the same period.