Gerdau S.A. [GGB] Stock trading around $5.22 per share: What’s Next?

Gerdau S.A. [NYSE: GGB] stock went on a downward path that fall over -0.38% on Tuesday, amounting to a one-week price decrease of less than -2.06%. The company report on August 4, 2021 that Gerdau S.A. – Consolidated Information.

2Q21 Highlights.

Gerdau S.A. (NYSE: GGB, BM&Fbovespa: GGBR3, GGBR4) — The consolidated EBITDA amounted R$ 5.9 billion in 2Q21, highest level ever for a quarter, with a margin of 30.8%.

Over the last 12 months, GGB stock rose by 36.82%. The average equity rating for GGB stock is currently 2.30, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $8.71 billion, with 1.71 billion shares outstanding and 622.25 million shares in the current float. Compared to the average trading volume of 9.89M shares, GGB stock reached a trading volume of 6677245 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]:

Credit Suisse have made an estimate for Gerdau S.A. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on September 09, 2021. The new note on the price target was released on January 13, 2021, representing the official price target for Gerdau S.A. stock.

The Average True Range (ATR) for Gerdau S.A. is set at 0.20, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 0.74. The Price to Book ratio for the last quarter was 1.29, with the Price to Cash per share for the same quarter was set at 0.65. 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 Performance Analysis:

Gerdau S.A. [GGB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.06. With this latest performance, GGB shares dropped by -12.27% in over the last four-week period, additionally plugging by 2.15% over the last 6 months – not to mention a rise of 36.82% 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 43.39, with the RSI for the last a single of trading hit 44.45, and the three-weeks RSI is set at 43.39 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 5.63, while it was recorded at 5.16 for the last single week of trading, and 5.41 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 +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 2.60.

GGB Stock EPS

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 Position Details

There are presently around $1,422 million, or 32.90% of GGB stock, in the hands of institutional investors. The top three institutional holders of GGB stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 101,432,791, which is approximately -18.169% of the company’s market cap and around 32.70% of the total institutional ownership; CONTRARIAN CAPITAL MANAGEMENT, L.L.C., holding 20,647,876 shares of the stock with an approximate value of $107.78 million in GGB stocks shares; and BLACKROCK INC., currently with $89.29 million in GGB stock with ownership of nearly 134.623% 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 100 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 61,968,248 shares. Additionally, 54 investors decreased positions by around 45,864,173 shares, while 31 investors held positions by with 164,621,302 shares. The mentioned changes placed institutional holdings at 272,453,723 shares, according to the latest SEC report filing. GGB stock had 43 new institutional investments in for a total of 11,034,481 shares, while 14 institutional investors sold positions of 4,960,354 shares during the same period.

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