Why are Institutional Investors Interested in Buying Gerdau S.A. (GGB)?

Gerdau S.A. (NYSE: GGB) is -28.78% lower on its value in year-to-date trading and has touched a low of $1.65 and a high of $5.34 in the current 52-week trading range. The GGB stock was last observed hovering at around $3.57 in the last trading session, with the day’s loss setting it -0.08% off its average median price target of $3.46 for the next 12 months. It is also 16.9% off the consensus price target high of $4.20 offered by 10 analysts, but current levels are -20.34% lower than the price target low of $2.90 for the same period.

Currently trading at $3.49, the stock is 1.94% and 9.34% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 6.01 million and changing -2.24% at the moment leaves the stock 3.40% off its SMA200. GGB registered 25.09% gain for a year compared to 6-month loss of -6.68%. The firm has a 50-day simple moving average (SMA 50) of $1.32% and a 200-day simple moving average (SMA200) of $25.22M.

The stock witnessed a 1.45% gain in the last 1 month and extending the period to 3 months gives it a 38.49%, and is -3.59% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 4.56% over the week and 3.93% over the month.

Gerdau S.A. (GGB) has around 40061 employees, a market worth around $5.88B and $6.74B in sales. Current P/E ratio is 35.98 and Fwd P/E is 25.29. Profit margin for the company is 2.40%. Distance from 52-week low is 111.52% and -34.68% from its 52-week high. The company has generated returns on investments over the last 12 months (6.10%).

Gerdau S.A. (GGB) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Gerdau S.A. (GGB) is a “Overweight”. 10 analysts offering their recommendations for the stock have an average rating of 3.00, where 4 rate it as a Hold and 0 think it is a “Overweight”. 6 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Gerdau S.A. is expected to release its quarterly report on 10/28/2020 and quarterly earnings per share for the current quarter are estimated at $0.08 with sales reaching $1.77B over the same period.The EPS is expected to shrink by -47.60% this year, but quarterly earnings will post -8.60% year-over-year. Quarterly sales are estimated to shrink -3.90% in year-over-year returns.

Gerdau S.A. (GGB) Top Institutional Holders

180 institutions hold shares in Gerdau S.A. (GGB), with institutional investors hold 21.91% of the company’s shares. The shares outstanding are 1.70B, and float is at 1.09B with Short Float at 2.07%. Institutions hold 21.91% of the Float.

The top institutional shareholder in the company is Capital International Investors with over 127.37 million shares valued at $377.02 million. The investor’s holdings represent 47.54% of the GGB Shares outstanding. As of Jun 29, 2020, the second largest holder is JP Morgan Chase & Company with 24.25 million shares valued at $71.78 million to account for 9.05% of the shares outstanding. The other top investors are Contrarian Capital Management, LLC which holds 21.15 million shares representing 7.89% and valued at over $62.59 million, while Fisher Asset Management, LLC holds 4.85% of the shares totaling 12.99 million with a market value of $38.46 million.

Gerdau S.A. (GGB): Who are the competitors?

The company’s main competitors (and peers) include United States Steel Corporation (X) that is trading -23.89% down over the past 12 months. ArcelorMittal (MT) is -9.68% down on the 1-year trading charts.