Capital Research & Management Co.. recently announced the acquisition of new stake in Gerdau S.A. (NYSE:GGB). The institutional investor has increased its shareholding in the Basic Materials company by 3.58% to 127.37 million shares with purchase of 4.4 million shares. This fresh investment now brings its stake to 11.11% valued currently at $425.42 million. In addition, JPMorgan Investment Management, I.. raised its holdings by 8.31 million to 13.28 million shares. And Fisher Asset Management LLC has lifted its position by 96.12% or 6.37 million shares – to 12.99 million shares.
With over 6.45 million Gerdau S.A. (GGB) shares trading Friday and a closing price of $3.52 on the day, the dollar volume was approximately $22.7 million. The shares have shown a positive weekly performance of 6.02% and its price on 08/21/20 lost nearly -4.09%. Currently, there are 1.70B common shares owned by the public and among those 1.09B shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 10 analysts who have offered their price forecasts for GGB have a consensus price objective of $3.36. The analysts have set the share’s price value over the next 12 months at a high of $4.20 and a low of $2.90 should the stock experience a downside. Incidentally, analysts’ outlook for the Gerdau S.A. stock is 3.00 for the next 12 months. The average price target is 18.14% above its last price level and an upside to the estimated low will see the stock lose -21.38% over that period. But an upside of 16.19% will see the stock hit the forecast high price target while mean target price for the stock is $3.27.
The top 3 mutual fund holders in Gerdau S.A. are American Funds New Perspective Fu, American Funds New World Fund, and DFA Dimensional Emerging Markets. American Funds New Perspective Fu owns 68.88 million shares of the company’s stock, all valued at over $230.06 million. The company bought an additional 2.0 million shares recently to bring their total holdings to about 6.01% of the shares outstanding. American Funds New World Fund bought 4.48 million shares to see its total holdings expand to 46.53 million shares valued at over $155.41 million and representing 4.06% of the shares outstanding. DFA Dimensional Emerging Markets now owns shares totaling to 0.59% of the shares outstanding.
Shares of Gerdau S.A. (NYSE: GGB) opened at $3.58, down -$0.09 from a prior closing price of $3.67. However, the script later closed the day at $3.52, down -4.09%. The company’s stock has a 5-day price change of 6.02% and 67.62% over the past three months. GGB shares are trading -28.16% year to date (YTD), with the 12-month market performance up to 15.79% higher. It has a 12-month low price of $1.65 and touched a high of $5.34 over the same period. Currently, 6.45 million shares have been traded, compared to an average intraday trading volume of 8.74 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.41%, 12.12%, and 4.25% respectively.
Institutional ownership of Gerdau S.A. (NYSE: GGB) shares accounts for 34.30% of the company’s 1.70B shares outstanding. Mutual fund holders own 15.37%, while other institutional holders and individual stakeholders account for 7.47% and — respectively.
It has a market capitalization of $5.94B and a beta (3y monthly) value of 2.27. The stock’s trailing 12-month PE ratio is 36.29, while the earnings-per-share (ttm) stands at $0.10. The company has a PEG of 13.54 and a Quick Ratio of 1.20 with the debt-to-equity ratio at 0.76. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.13% over the week and 4.06% over the month.
Analysts forecast that Gerdau S.A. (GGB) will achieve an EPS of $0.08 for the current quarter, -$0.02 for the next quarter and $0.14 for 2021. The lowest estimate earnings-per-share for the quarter is $0.02 while analysts give the company a high EPS estimate of $0.14. Comparatively, EPS for the current quarter was $0.04 a year ago. Earnings per share for the fiscal year are expected to decrease by -47.60%, and 345.16% over the next financial year. EPS should grow at an annualized rate of 2.68% over the next five years, compared to -2.90% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate Gerdau S.A. (GGB) as a “Hold” at a consensus score of 3.00. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 3 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the GGB, a number of firms have released research notes about the stock. JP Morgan stated their Overweight rating for the stock in a research note on August 19, 2020, with the firm’s price target at. Itau BBA coverage for the Gerdau S.A. (GGB) stock in a research note released on July 24, 2020 offered a Outperform rating with a price target of. JP Morgan was of a view on June 22, 2020 that the stock is Neutral, while BofA/Merrill gave the stock Underperform rating on June 08, 2020, issuing a price target of. Scotiabank on their part issued Sector Perform rating on January 22, 2020.