Gerdau S.A. [GGB] Stock trading around $4.82 per share: What’s Next?


Gerdau S.A. [NYSE: GGB] loss -2.03% or -0.1 points to close at $4.82 with a heavy trading volume of 6451265 shares. The company report on December 6, 2021 that Gerdau S.A. Announces Final Results Of The Cash Tender Offer For Certain Of The Outstanding 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”) hereby announces the final results of the previously announced offer by the Company to purchase for cash (the “Tender Offer”) up to a maximum tender consideration of U.S. $500,000,000 of certain of the outstanding 4.750% Bonds due 2023 (the “2023 Bonds”) issued by issued by Gerdau Trade Inc. (“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 2023 Bonds and the 2024 Bonds, the “Bonds” and each, a “series” of Bonds) issued by GTI (GTI, GHI and GTL, collectively, the “Offerors”). The Tender Offer was made pursuant to the offer to purchase dated November 4, 2021 (the “Offer to Purchase”). Capitalized terms used but not defined in this press release shall have the meanings assigned to them in the Offer to Purchase.

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The principal amount of each series of Bonds that were validly tendered in the Tender Offer after the Early Tender Date but before the Expiration Date, the principal amount of each series of Bonds that have been accepted for purchase by the Offerors and the Tender Offer Consideration that shall be paid to the eligible holders of Bonds that were validly tendered after the Early Tender Date and prior to the Expiration Date, and whose Bonds were accepted for purchase, are set forth in the table below.

It opened the trading session at $4.90, the shares rose to $4.93 and dropped to $4.805, the range by which the price of stock traded the whole day. The daily chart for GGB points out that the company has recorded -12.56% loss over the past six months. However, it is still -19.01% lower than its most recent low trading price.

If we look at the average trading volume of 7.75M shares, GGB reached to a volume of 6451265 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 $7.70 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 2.30. 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.

Citigroup have made an estimate for Gerdau S.A. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 12, 2021. The new note on the price target was released on September 09, 2021, representing the official price target for Gerdau S.A. stock.

The Average True Range (ATR) for Gerdau S.A. is set at 0.16, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 0.63. The Price to Book ratio for the last quarter was 1.13, with the Price to Cash per share for the same quarter was set at 0.92. Price to Free Cash Flow for GGB in the course of the last twelve months was 16.58 with Quick ratio for the last quarter at 1.50.

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 0.00. With this latest performance, GGB shares dropped by -0.21% in over the last four-week period, additionally sinking by -12.56% over the last 6 months – not to mention a rise of 0.10% 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 48.68, with the RSI for the last a single of trading hit 46.47, and the three-weeks RSI is set at 49.29 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 4.75, while it was recorded at 4.84 for the last single week of trading, and 5.45 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 1.50 and a Current Ratio set at 2.70.

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%.

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

There are presently around $1,206 million, or 22.90% of GGB stock, in the hands of institutional investors. The top three institutional holders of GGB stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 96,816,400, which is approximately -4.551% of the company’s market cap and around 32.70% of the total institutional ownership; CONTRARIAN CAPITAL MANAGEMENT, L.L.C., holding 23,106,487 shares of the stock with an approximate value of $113.68 million in GGB stocks shares; and BANK OF AMERICA CORP /DE/, currently with $89.33 million in GGB stock with ownership of nearly 67.713% of the company’s market capitalization.

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 74 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 25,802,009 shares. Additionally, 81 investors decreased positions by around 51,662,013 shares, while 28 investors held positions by with 167,682,129 shares. The mentioned changes placed institutional holdings at 245,146,151 shares, according to the latest SEC report filing. GGB stock had 16 new institutional investments in for a total of 1,205,003 shares, while 35 institutional investors sold positions of 6,095,245 shares during the same period.