Gerdau S.A. (NYSE:GGB) finished Thursday with a subtraction of -$0.11 to close at $5.04, a downside of -2.14 percent. An average of 5,862,280 shares of common stock have been traded in the last five days. There was a fall of -$0.06 in the past week, and it reached a new high 18 times over the past 12 months. The last 20 days have seen an average of 8,618,210 shares traded, while the 50-day average volume stands at 6,873,400.
GGB stock has decreased by -17.51% in the last month. The company shares reached their 1-month lowest point of $4.91 on 08/21/23. With the stock rallying to its 52-week high on 01/18/23, shares of the company touched a low of $3.95 and a high of $6.21 in 52 weeks. It has reached a new high 10 times so far this year and lost -2.50% or -$0.24 in price. In spite of this, the price is down -18.83% from the 52-week high.
Valuation Metrics
Gerdau S.A. (GGB) has a trailing price-to-earnings (P/E) ratio of 4.62. The stock’s beta is 1.65. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.57, the price-to-book (PB) ratio at 0.90.
The company has a payout ratio of 289.40%. The company’s most recent quarterly dividend payment was $0.0878 a share, representing a down of -13.07% from $0.1010 last year. Its latest decrease dividend $0.0132 reported on Wednesday August 9 2023.
Financial Health
The quick ratio of Gerdau S.A. for the three months ended June 29 was 1.30, and the current ratio was 2.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.22 and a total debt to equity ratio of 0.24 for the quarter ending June 29. Gerdau S.A.’s EBITDA margin for the year ending June 29 is 23.58%, while its operating margin for the same period stands at 18.90%. Its gross profit as reported stood at $3.63 billion compared to revenue of $15.96 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Gerdau S.A.’s return on assets was 12.60%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.17 billion in the quarter, while revenues were shrunk -35.61%. The analyst consensus anticipated Gerdau S.A.’s latest quarter earnings to come in at $0.28 per share, but it turned out to be $0.24, a -14.30% surprise. For the quarter, EBITDA amounted to $741.54 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Gerdau S.A. (GGB) price momentum. RSI 9-day as of the close on 24 August was 34.21%, suggesting the stock is Neutral, with historical volatility in this time frame at 25.15%.
As of today, GGB’s price is $5.06 -1.18% or -$0.06 from its 5-day moving average. GGB is currently trading -15.58% lower than its 20-day SMA and +2.23% higher than its 100-day SMA. However, the stock’s current price level is -2.14% below the SMA50 and -0.71% below the SMA200.
The stochastic %K and %D were 18.85% and 13.51%, respectively, and the average true range (ATR) was 0.14. With the 14-day stochastic at 17.81% and the average true range at 0.15, the RSI (14) stands at 36.69%. The stock has reached -0.01 on the 9-day MACD Oscillator while the 14-day reading was at -0.10.
Analyst Ratings
JP Morgan downgraded Gerdau S.A. (NYSE: GGB) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Gerdau S.A. (GGB) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell GGB, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 10 others rate it as a “buy”.
What is GGB’s price target for the next 12 months?
Analysts predict a range of price targets between $5.60 and $7.95, with a median target of $6.69. Taking a look at these predictions, the average price target given by analysts for Gerdau S.A. (GGB) stock is $6.64.
