Gerdau S.A. [GGB] Is Currently 2.18 below its 200 Period Moving Avg: What Does This Mean?

Gerdau S.A. [NYSE: GGB] gained 2.18% or 0.11 points to close at $5.15 with a heavy trading volume of 5829447 shares. The company report on August 29, 2023 at 9:00 AM that Gerdau introduces recyclable steel into Formula 1 São Paulo Grand Prix.

At event in the city of São Paulo, executives of Gerdau and São Paulo Grand Prix announced unprecedented partnership, which will offer new sustainable experience in the Brazilian round of the world’s largest and most popular motor racing competition.

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Gerdau, Brazil’s largest steel producer and one of the leading producers of special steel for the automotive industry, announces today an unprecedented partnership with São Paulo Grand Prix, the Brazilian round of the world’s largest and most popular motor racing competition, to take place on November 3, 4 and 5 at Interlagos racetrack. The company will be the event’s official steel supplier, with an 100% recyclable product, to be used to modernize the structures of Interlagos circuit, located in the city and state of São Paulo.

It opened the trading session at $5.14, the shares rose to $5.17 and dropped to $5.095, the range by which the price of stock traded the whole day. The daily chart for GGB points out that the company has recorded 6.76% gains over the past six months. However, it is still -30.38% lower than its most recent low trading price.

If we look at the average trading volume of 6.72M shares, GGB reached to a volume of 5829447 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 $6.70 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 2.00. 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.

JP Morgan have made an estimate for Gerdau S.A. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on February 09, 2023.

The Average True Range (ATR) for Gerdau S.A. is set at 0.13, with the Price to Sales ratio for GGB stock in the period of the last 12 months amounting to 0.58. The Price to Book ratio for the last quarter was 0.91, with the Price to Cash per share for the same quarter was set at 0.49.

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 -1.90. With this latest performance, GGB shares dropped by -2.09% in over the last four-week period, additionally plugging by 6.76% over the last 6 months – not to mention a rise of 22.74% 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 46.44, with the RSI for the last a single of trading hit 48.96, and the three-weeks RSI is set at 46.26 for Gerdau S.A. [GGB]. The present Moving Average for the last 50 days of trading for this stock 5.42, while it was recorded at 5.08 for the last single week of trading, and 5.29 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 +20.10 and a Gross Margin at +22.75. Gerdau S.A.’s Net Margin is presently recorded at +13.86.

Return on Total Capital for GGB is now 28.14, given the latest momentum, and Return on Invested Capital for the company is 20.42. Return on Equity for this stock inclined to 25.76, with Return on Assets sitting at 15.48. When it comes to the capital structure of this company, Gerdau S.A. [GGB] has a Total Debt to Total Equity ratio set at 29.57. Additionally, GGB Total Debt to Total Capital is recorded at 22.82, with Total Debt to Total Assets ending up at 18.48. Long-Term Debt to Equity for the company is recorded at 22.21, with the Long-Term Debt to Total Capital now at 17.14.

Receivables Turnover for the company is 10.62 with a Total Asset Turnover recorded at a value of 1.12.Gerdau S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 2.90.

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 -3.46%.

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

The top three institutional holders of GGB stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in GGB stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in GGB stock with ownership which is approximately 5.7381%.

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