Gerdau S.A. (NYSE: GGB) stock fell -1.80% on Wednesday to $4.90 against a previous-day closing price of $4.99. With 7.62 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.8 million shares. During the session, the Steel company that operates in wider Basic Materials sector, reached to the highest price of $4.9650 whereas the lowest price it dropped to was $4.8600. The 52-week range on GGB shows that it touched its highest point at $6.21 and its lowest point at $3.63 during that stretch. It currently has a 1-year price target of $6.65. With its current market cap of 8.45 billion, GGB has annualized dividend of $0.68 while the current yield stands at 13.90%. Beta for the stock currently stands at 1.62.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GGB was up-trending over the past week, with a rise of 1.03%, but this was up by 5.52% over a month. Three-month performance dropped to -5.54% while six-month performance fell -6.40%. The stock lost -10.64% in the past year, while it has lost -5.20% so far this year. A look at the trailing 12-month EPS for GGB yields 1.33 with Next year EPS estimates of 0.64. For the next quarter, that number is 0.29. This implies an EPS growth rate of -25.80% for this year and -31.90% for next year. EPS is expected to decline by -3.46% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 102.50%.
Float and Shares Shorts:
At present, 1.75 billion GGB shares are outstanding with a float of 1.10 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 7.18 million, which was 0.41% higher than short shares on Mar 30, 2023. In addition to Mr. Gustavo Werneck Da Cunha as the firm’s Member of Board Of Exec. Officers CEO & Director, Mr. Claudio Gerdau Johannpeter serves as its Vice Chairman.
Through their ownership of 27.11% of GGB’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 14.12% of GGB, in contrast to 12.66% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in GGB with 8.25% of the stake, Capital Research & Management Co holds 95,368,667 shares worth 95,368,667. A second-largest stockholder of GGB, Acadian Asset Management LLC, holds 27,532,712 shares, controlling over 2.38% of the firm’s shares. Contrarian Capital Management LLC is the third largest shareholder in GGB, holding 17,978,551 shares or 1.56% stake. With a 3.57% stake in GGB, the American Funds New Perspective Fu is the largest stakeholder. A total of 41,243,105 shares are owned by the mutual fund manager. The American Funds New World Fund, which owns about 3.08% of GGB stock, is the second-largest Mutual Fund holder. It holds 35,628,163 shares valued at 177.78 million. Capital Income Builder holds 0.81% of the stake in GGB, owning 9,332,400 shares worth 46.57 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, GGB reported revenue of $22.97B and operating income of $5.41B. The EBITDA in the recently reported quarter was $6.39B and diluted EPS was $2.38.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GGB since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With GGB analysts setting a high price target of $8.88 and a low target of $5.71, the average target price over the next 12 months is $6.92. Based on these targets, GGB could surge 81.22% to reach the target high and rise by 16.53% to reach the target low. Reaching the average price target will result in a growth of 41.22% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.