Published On: Fri, Sep 9th, 2016

Gerdau SA (GGB) Lowered to “Hold” at Zacks Investment Research

Gerdau SA (NYSE:GGB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “Gerdau's product portfolio and manufacturing techniques will help it grow over the long term. Its international diversity provides support to the top-line, as decline in revenues in some regions can be offset by improvement in others. Also, the company's strategy of disposing loss-making assets/businesses will enable it to focus on the profitable ones. In this regard, the disposition of Spain-based special steel producer to Clerbil SL in Jun 2016 is worth mentioning. Going forward, any investment by the government in infrastructure improvements will boost steel demand in these regions, thereby creating lucrative market conditions for steel producers like Gerdau.  However, this does not shield Gerdau from risks associated with increasing raw material costs, foreign currency fluctuations, huge debt levels and cyclical nature of the industry.”
GGB has been the topic of a number of other research reports. Bank of America Corp. reaffirmed a “buy” rating on shares of Gerdau SA in a research report on Sunday, May 22nd. Credit Suisse Group AG raised Gerdau SA from a “neutral” rating to an “outperform” rating in a report on Thursday, August 4th. Finally, Morgan Stanley raised Gerdau SA from an “equal weight” rating to an “overweight” rating in a report on Thursday, August 18th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and three have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $3.00.

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Shares of Gerdau SA (NYSE:GGB) traded down 6.35% during mid-day trading on Friday, hitting $2.80. The stock had a trading volume of 8,215,762 shares. The stock’s market cap is $4.81 billion. The firm has a 50 day moving average price of $2.68 and a 200-day moving average price of $1.96. Gerdau SA has a 12 month low of $0.79 and a 12 month high of $3.19.
The business also recently disclosed a dividend, which will be paid on Monday, September 12th. Investors of record on Thursday, August 25th will be issued a dividend of $0.008 per share. The ex-dividend date is Tuesday, August 23rd.
Other institutional investors have made changes to their positions in the company. AMP Capital Investors Ltd raised its position in shares of Gerdau SA by 70.1% in the first quarter. AMP Capital Investors Ltd now owns 139,032 shares of the company’s stock worth $253,000 after buying an additional 57,300 shares in the last quarter. Stratos Wealth Partners LTD. raised its position in shares of Gerdau SA by 100.0% in the first quarter. Stratos Wealth Partners LTD. now owns 150,000 shares of the company’s stock worth $267,000 after buying an additional 75,000 shares in the last quarter. Edmond DE Rothschild Holding S.A. raised its position in shares of Gerdau SA by 485.6% in the first quarter. Edmond DE Rothschild Holding S.A. now owns 263,500 shares of the company’s stock worth $469,000 after buying an additional 218,500 shares in the last quarter. Aston Asset Management LLC raised its position in shares of Gerdau SA by 19.8% in the first quarter. Aston Asset Management LLC now owns 542,534 shares of the company’s stock worth $966,000 after buying an additional 89,506 shares in the last quarter. Finally, Bank of Montreal Can acquired a new position in shares of Gerdau SA during the second quarter worth $1,129,000. Institutional investors and hedge funds own 6.36% of the company’s stock.
About Gerdau SA
Gerdau SA (Gerdau) is a producer of long rolled steel. The Company operates in five segments: Brazil (Brazil Business Operation), which includes the steel operations in Brazil (except special steel) and the metallurgical and coking coal operation in Colombia; North America (North America Business Operation), which includes all North American operations, except Mexico and special steel; Latin America (Latin America Business Operation), which includes all Latin American operations, except the operations in Brazil and the metallurgical and coking coal operations in Colombia; Special Steel (Special Steel Business Operation), which includes the special steel operations in Brazil, Spain, the United States and India, and Iron Ore (Iron Ore Business Operation), which includes the iron ore operations in Brazil.
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