Gerdau (NYSE:GGB) Stock Price Down 3.3% – Should You Sell?

Gerdau S.A. (NYSE:GGB) dropped 3.3% on Wednesday . The stock traded as low as $2.81 and last traded at $2.83. Approximately 752,140 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 9,206,088 shares. The stock had previously closed at $2.92.

Wall Street Analysts Forecast Growth

Separately, UBS Group began coverage on Gerdau in a research note on Wednesday, March 12th. They issued a “neutral” rating for the company.

Gerdau Stock Down 2.2 %

The company has a current ratio of 2.98, a quick ratio of 1.53 and a debt-to-equity ratio of 0.21. The firm’s 50 day moving average price is $2.94 and its two-hundred day moving average price is $3.13. The company has a market capitalization of $5.93 billion, a price-to-earnings ratio of 6.64 and a beta of 1.69.

Gerdau (NYSE:GGB) last announced its quarterly earnings results on Wednesday, February 19th. The basic materials company reported $0.06 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.06. Gerdau had a return on equity of 7.74% and a net margin of 7.03%. The firm had revenue of $2.88 billion for the quarter, compared to the consensus estimate of $2.66 billion. Sell-side analysts anticipate that Gerdau S.A. will post 0.46 earnings per share for the current fiscal year.

Gerdau Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 21st. Shareholders of record on Friday, March 7th were issued a dividend of $0.0175 per share. This represents a $0.07 annualized dividend and a yield of 2.46%. The ex-dividend date of this dividend was Friday, March 7th. Gerdau’s dividend payout ratio is 13.95%.

Hedge Funds Weigh In On Gerdau

Several institutional investors and hedge funds have recently modified their holdings of the stock. Dynamic Technology Lab Private Ltd bought a new stake in shares of Gerdau during the 3rd quarter worth about $79,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Gerdau by 307.7% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,037,480 shares of the basic materials company’s stock worth $3,631,000 after acquiring an additional 782,980 shares during the period. Rockefeller Capital Management L.P. increased its stake in shares of Gerdau by 0.3% during the third quarter. Rockefeller Capital Management L.P. now owns 3,332,715 shares of the basic materials company’s stock worth $11,665,000 after purchasing an additional 11,428 shares during the period. HighTower Advisors LLC acquired a new stake in Gerdau during the 3rd quarter worth approximately $38,000. Finally, Itau Unibanco Holding S.A. grew its holdings in Gerdau by 170.0% in the 3rd quarter. Itau Unibanco Holding S.A. now owns 2,887,200 shares of the basic materials company’s stock valued at $10,105,000 after buying an additional 1,817,800 shares in the last quarter. 1.49% of the stock is currently owned by institutional investors and hedge funds.

Gerdau Company Profile

Gerdau SA, together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.