Gerdau S.A. [GGB] is 25.22% higher this YTD. Is it still time to buy?

Gerdau S.A. [NYSE: GGB] gained 2.28% on the last trading session, reaching $5.82 price per share at the time. The company report on May 5, 2021 that Gerdau S.A. – Consolidated Information.

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1Q21 Highlights.

Gerdau S.A. (NYSE: GGB, BM&Fbovespa: GGBR3, GGBR4) — The consolidated EBITDA amounted R$ 4.3 billion in 1Q21, highest level ever for a quarter, with a margin of 26.4%.

Gerdau S.A. represents 1.70 billion in outstanding shares, while the company has a total market value of $9.44 billion with the latest information. GGB stock price has been found in the range of $5.72 to $5.89.

If compared to the average trading volume of 19.66M shares, GGB reached a trading volume of 7438800 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $7.16 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 0.22, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 0.94. The Price to Book ratio for the last quarter was 1.45, with the Price to Cash per share for the same quarter was set at 0.86. Price to Free Cash Flow for GGB in the course of the last twelve months was 10.46 with Quick ratio for the last quarter at 1.30.

Trading performance analysis for GGB stock

Gerdau S.A. [GGB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.67. With this latest performance, GGB shares dropped by -9.77% in over the last four-week period, additionally plugging by 25.22% over the last 6 months – not to mention a rise of 98.93% 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 41.43, with the RSI for the last a single of trading hit 39.07, and the three-weeks RSI is set at 44.12 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 6.32, while it was recorded at 5.93 for the last single week of trading, and 4.99 for the last 200 days.

Gerdau S.A. [GGB]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Gerdau S.A. [GGB] shares currently have an operating margin of +8.96 and a Gross Margin at +13.54. Gerdau S.A.’s Net Margin is presently recorded at +5.40.

Return on Total Capital for GGB is now 8.40, given the latest momentum, and Return on Invested Capital for the company is 5.28. Return on Equity for this stock inclined to 8.18, with Return on Assets sitting at 4.04. When it comes to the capital structure of this company, Gerdau S.A. [GGB] has a Total Debt to Total Equity ratio set at 59.53. Additionally, GGB Total Debt to Total Capital is recorded at 37.32, with Total Debt to Total Assets ending up at 29.10. Long-Term Debt to Equity for the company is recorded at 54.14, with the Long-Term Debt to Total Capital now at 33.94.

Receivables Turnover for the company is 9.08 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 1.30 and a Current Ratio set at 2.30.

Gerdau S.A. [GGB]: An earnings per share (EPS) analysis

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 5.33%.

An analysis of insider ownership at Gerdau S.A. [GGB]

There are presently around $1,494 million, or 23.20% of GGB stock, in the hands of institutional investors. The top three institutional holders of GGB stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 123,954,242, which is approximately -4.067% of the company’s market cap and around 32.70% of the total institutional ownership; JPMORGAN CHASE & CO, holding 20,507,935 shares of the stock with an approximate value of $119.36 million in GGB stocks shares; and CONTRARIAN CAPITAL MANAGEMENT, L.L.C., currently with $115.57 million in GGB stock with ownership of nearly -1.932% 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 August and at the time of the August reporting period, where 67 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 21,995,136 shares. Additionally, 72 investors decreased positions by around 24,179,915 shares, while 29 investors held positions by with 210,500,111 shares. The mentioned changes placed institutional holdings at 256,675,162 shares, according to the latest SEC report filing. GGB stock had 18 new institutional investments in for a total of 6,727,994 shares, while 27 institutional investors sold positions of 6,220,203 shares during the same period.

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