Gerdau S.A. (GGB) will probably climb 36.96 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $6.56-month high price target. This represents a whopping 58.45 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $5.32, which represents a return potential of 28.5 percent when compared to the closing price of the stock of $4.14 on Friday, January 11. The lowest price target for the stock is $2.72 — slightly more than -34.3 percent from GGB’s current share price.
The stock is currently hovering around the first support level of $4.04. Below this, the next support is placed in the zone of $3.94. Till the time, the GGB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.14 on daily chart, which may remain a cause for concern. If the price breaks below $3.94 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4.2 mark may result into a pull-back move towards $4.26 level.
On 11th of January, Gerdau S.A. (NYSE:GGB) shares ended lower after a volatile session. The shares dropped -0.04 points or -0.96 percent at $4.14 with a heavy trade volume of 18.204 million shares. After opening the session at $4.02, the shares went as high as $4.16 and as low as $4, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $6.74 billion and now has 1.63 billion shares outstanding. Gerdau S.A. (GGB) stock has gained 5.34 percent of market value in 21 trading days.
GGB stock has a trailing 3-year beta of 1.99, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.09 a share in the trailing twelve months. The stock’s value has surged 10.11 percent year to date (YTD) against a decline of -1.88 percent in 12 month’s time. The company’s shares still trade -21.06 percent away from its 1-year high of $5.24 and 24.19 percent up from 52-week low of $3.33. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.
Shares of Gerdau S.A. (GGB) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry GGB operates in has an average P/E of 24.14. Its P/E ratio went as low as 11.48X and as high as 22 over the 5-year span. Further, it is sporting a 0.56 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 13.1 percent is the gross profit margin for Gerdau S.A. and operating margin sits at 5 percent. Along with this, the net profit margin is 1.2 percent.
Let’s take a look at some insider activity at Gerdau S.A. (NYSE:GGB) and see the pattern.