Gerdau S.A. [GGB] is 30.81% higher this YTD. Is it still time to buy?

Gerdau S.A. [NYSE: GGB] closed the trading session at $6.08 on 07/26/21. The day’s price range saw the stock hit a low of $5.90, while the highest price level was $6.10. The company report on July 14, 2021 that Gerdau’s Intensive Sales Accelerator Program Aims to Drive New Business Revenue for Smart and Sustainable Startups in the US.

Applications are open until July 30.

Gerdau, one of the leading producers of long steel in the Americas and of special steel in the world and with over 120 years of experience, is bringing its Sales Acceleration Program to North America. This cost and equity-free, two-phase program supports startups in increasing revenue, exploring new countries, and potentially getting additional funding. Gerdau is looking for B2B startups that are fully funded with a market-ready product, service, or solution, with an active sales team and existing customer base.

The stocks have a year to date performance of 30.81 percent and weekly performance of 9.16 percent. The stock has been moved at 36.06 percent over the last six months. The stock has performed -2.25 percent around the most recent 30 days and changed -3.49 percent over the most recent 3-months.

If compared to the average trading volume of 16.36M shares, GGB reached to a volume of 9350730 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $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 0.23, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 1.03. The Price to Book ratio for the last quarter was 1.56, with the Price to Cash per share for the same quarter was set at 0.81. Price to Free Cash Flow for GGB in the course of the last twelve months was 11.47 with Quick ratio for the last quarter at 1.30.

GGB stock trade performance evaluation

Gerdau S.A. [GGB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 9.16. With this latest performance, GGB shares dropped by -2.25% in over the last four-week period, additionally plugging by 36.06% over the last 6 months – not to mention a rise of 85.84% 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 56.69, with the RSI for the last a single of trading hit 64.07, and the three-weeks RSI is set at 53.49 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 6.09, while it was recorded at 5.83 for the last single week of trading, and 5.14 for the last 200 days.

Gerdau S.A. [GGB]: An insightful look at the core fundamentals

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.

Earnings per share (EPS) analysis for Gerdau S.A. [GGB] stock

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%.

Gerdau S.A. [GGB]: Insider Ownership positions

There are presently around $1,561 million, or 31.50% 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 $124.69 million in GGB stocks shares; and CONTRARIAN CAPITAL MANAGEMENT, L.L.C., currently with $120.73 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 70 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 22,023,871 shares. Additionally, 70 investors decreased positions by around 24,151,824 shares, while 30 investors held positions by with 210,494,828 shares. The mentioned changes placed institutional holdings at 256,670,523 shares, according to the latest SEC report filing. GGB stock had 22 new institutional investments in for a total of 6,780,075 shares, while 25 institutional investors sold positions of 6,155,733 shares during the same period.

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