Zacks Investment Research lowered shares of Gerdau S.A. (NYSE:GGB) from a buy rating to a hold rating in a research report report published on Wednesday.

According to Zacks, “Year to date, Gerdau's American Depository Receipts (ADR) have outperformed the industry. We believe that the company's product portfolio, manufacturing techniques and international diversity will help it grow over the long term. Also, its strategy of disposing loss-making assets/businesses will enable it to focus on the profitable ones. Going forward, any investment by the government in infrastructure improvements will boost steel demand in Brazil, thereby creating favorable conditions for the company. However, it is exposed to risks arising from higher raw material costs, foreign currency fluctuations, huge debt levels and cyclical nature of the industry. In second-quarter 2017, the company's adjusted net income declined 19.1% year over year due to 10.6% fall in revenues, forex woes and higher income tax expenses. Also, the stock is currently overvalued compared with the industry.”

A number of other brokerages have also commented on GGB. BidaskClub lowered shares of Gerdau from a buy rating to a hold rating in a research report on Monday, July 24th. Scotiabank raised shares of Gerdau from an underperform rating to a sector perform rating in a research report on Friday, June 9th. One investment analyst has rated the stock with a sell rating and four have issued a hold rating to the company. Gerdau currently has an average rating of Hold and an average target price of $4.00.

Shares of Gerdau (NYSE:GGB) traded down 1.65% during midday trading on Wednesday, hitting $3.58. The company had a trading volume of 4,315,096 shares. Gerdau has a 52 week low of $2.47 and a 52 week high of $4.39. The company’s market capitalization is $6.12 billion. The firm’s 50 day moving average is $3.45 and its 200 day moving average is $3.37.

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The business also recently announced a quarterly dividend, which will be paid on Monday, September 11th. Stockholders of record on Thursday, August 24th will be given a dividend of $0.005 per share. This represents a $0.02 dividend on an annualized basis and a dividend yield of 0.56%. The ex-dividend date of this dividend is Tuesday, August 22nd.

Several institutional investors have recently modified their holdings of GGB. Comerica Bank raised its position in shares of Gerdau by 1.5% in the first quarter. Comerica Bank now owns 65,710 shares of the basic materials company’s stock worth $196,000 after buying an additional 982 shares during the period. BNP Paribas Arbitrage SA raised its position in shares of Gerdau by 5.9% in the first quarter. BNP Paribas Arbitrage SA now owns 758,093 shares of the basic materials company’s stock worth $2,615,000 after buying an additional 41,960 shares during the period. Bank of New York Mellon Corp raised its position in shares of Gerdau by 1.2% in the first quarter. Bank of New York Mellon Corp now owns 2,472,966 shares of the basic materials company’s stock worth $8,531,000 after buying an additional 29,673 shares during the period. Daiwa Securities Group Inc. raised its position in shares of Gerdau by 101.0% in the first quarter. Daiwa Securities Group Inc. now owns 614,900 shares of the basic materials company’s stock worth $2,121,000 after buying an additional 309,000 shares during the period. Finally, American Century Companies Inc. bought a new position in shares of Gerdau during the first quarter worth approximately $2,989,000. 5.04% of the stock is currently owned by institutional investors and hedge funds.

Gerdau Company Profile

Gerdau SA (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela.

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