Gerdau S.A. [GGB] is 15.24% higher this YTD. Is it still time to buy?



Gerdau S.A. [NYSE: GGB] price plunged by -3.24 percent to reach at -$0.19. The company report on February 23, 2022 that GERDAU S.A. – CONSOLIDATED INFORMATION.

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4Q21 Highlights.

Gerdau S.A. (NYSE: GGB, BM&Fbovespa: GGBR3, GGBR4) — Best annual adjusted EBITDA in history in 2021, reaching R$23.2 billion, with an EBITDA margin of 29.6%; net income totals R$ 13.9 billion, a historical annual record.

A sum of 22729670 shares traded at recent session while its average daily volume was at 12.20M shares. Gerdau S.A. shares reached a high of $6.01 and dropped to a low of $5.6143 until finishing in the latest session at $5.67.

The one-year GGB stock forecast points to a potential upside of 34.83. The average equity rating for GGB stock is currently 2.20, trading closer to a bullish pattern in the stock market.

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 $8.70 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 2.20. 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 0.27, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 0.59. The Price to Book ratio for the last quarter was 1.12, 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 11.10 with Quick ratio for the last quarter at 1.10.

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 -3.24. With this latest performance, GGB shares dropped by -11.27% in over the last four-week period, additionally plugging by 18.85% over the last 6 months – not to mention a drop of -5.52% 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 43.32, with the RSI for the last a single of trading hit 41.14, and the three-weeks RSI is set at 45.87 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 5.83, while it was recorded at 5.61 for the last single week of trading, and 5.29 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 +25.66 and a Gross Margin at +26.57. Gerdau S.A.’s Net Margin is presently recorded at +19.78.

Return on Equity for this stock inclined to 42.18, with Return on Assets sitting at 22.63.

Gerdau S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 2.30.


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 5.33%.

Gerdau S.A. [GGB] Insider Position Details

There are presently around $1,339 million, or 21.90% of GGB stock, in the hands of institutional investors. The top three institutional holders of GGB stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 97,116,987, which is approximately 0.31% of the company’s market cap and around 32.70% of the total institutional ownership; CONTRARIAN CAPITAL MANAGEMENT, L.L.C., holding 23,138,851 shares of the stock with an approximate value of $131.2 million in GGB stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $58.45 million in GGB stock with ownership of nearly 12.112% of the company’s market capitalization.

Positions in Gerdau S.A. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 95 institutional holders increased their position in Gerdau S.A. [NYSE:GGB] by around 27,014,804 shares. Additionally, 58 investors decreased positions by around 35,218,826 shares, while 29 investors held positions by with 173,992,503 shares. The mentioned changes placed institutional holdings at 236,226,133 shares, according to the latest SEC report filing. GGB stock had 34 new institutional investments in for a total of 7,034,030 shares, while 16 institutional investors sold positions of 5,039,263 shares during the same period.