Goldman slashes price target on Gerdau S.A. [GGB] – find out why.

Gerdau S.A. [NYSE: GGB] stock went on an upward path that rose over 5.92% on Wednesday, amounting to a one-week price increase of more than 11.58%. The company report on February 24, 2021 that Gerdau SA to Host Earnings Call.

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Gerdau SA (NYSE:GGB) will be discussing their earnings results in their 2020 Fourth Quarter Earnings call to be held on February 24, 2021 at 2:00 PM Eastern Time.

To listen to the event live or access a replay of the call – visit https://www.investornetwork.com/event/presentation/73626.

Over the last 12 months, GGB stock rose by 25.81%. The one-year Gerdau S.A. stock forecast points to a potential downside of -2.66. The average equity rating for GGB stock is currently 2.50, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $7.90 billion, with 1.70 billion shares outstanding and 566.09 million shares in the current float. Compared to the average trading volume of 5.48M shares, GGB stock reached a trading volume of 14126990 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $4.88 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.

Goldman have made an estimate for Gerdau S.A. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 13, 2021. The new note on the price target was released on December 15, 2020, representing the official price target for Gerdau S.A. stock.

The Average True Range (ATR) for Gerdau S.A. is set at 0.21, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 1.08. The Price to Book ratio for the last quarter was 1.48, with the Price to Cash per share for the same quarter was set at 0.84. Price to Free Cash Flow for GGB in the course of the last twelve months was 22.93 with Quick ratio for the last quarter at 1.40.

GGB Stock Performance Analysis:

Gerdau S.A. [GGB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 11.58. With this latest performance, GGB shares gained by 11.58% in over the last four-week period, additionally plugging by 42.51% over the last 6 months – not to mention a rise of 25.81% 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 64.38, with the RSI for the last a single of trading hit 71.95, and the three-weeks RSI is set at 60.21 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 4.69, while it was recorded at 4.68 for the last single week of trading, and 3.76 for the last 200 days.

Insight into Gerdau S.A. 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.

GGB Stock EPS

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 5.45%.

Gerdau S.A. [GGB] Insider Position Details

There are presently around $1,297 million, or 23.30% of GGB stock, in the hands of institutional investors. The top three institutional holders of GGB stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 129,208,943, which is approximately 0.72% of the company’s market cap and around 32.70% of the total institutional ownership; CONTRARIAN CAPITAL MANAGEMENT, L.L.C., holding 20,247,839 shares of the stock with an approximate value of $101.44 million in GGB stocks shares; and JPMORGAN CHASE & CO, currently with $97.85 million in GGB stock with ownership of nearly -18.73% of the company’s market capitalization.

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Positions in Gerdau S.A. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 76 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 24,298,035 shares. Additionally, 58 investors decreased positions by around 27,665,404 shares, while 28 investors held positions by with 206,865,329 shares. The mentioned changes placed institutional holdings at 258,828,768 shares, according to the latest SEC report filing. GGB stock had 33 new institutional investments in for a total of 11,622,327 shares, while 13 institutional investors sold positions of 545,427 shares during the same period.

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