While Gerdau S.A. ADR has underperformed by -4.93%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, GGB fell by -18.21%, with highs and lows ranging from $4.04 to $2.67, whereas the simple moving average fell by -11.38% in the last 200 days.
On May 24, 2024, BofA Securities Upgraded Gerdau S.A. ADR (NYSE: GGB) to Buy. A report published by JP Morgan on April 15, 2024, Upgraded its rating to ‘Overweight’ for GGB. JP Morgan February 09, 2023d the rating to Neutral on February 09, 2023, and set its price target from $7 to $6. Citigroup November 12, 2021d its ‘Neutral’ rating to ‘Buy’ for GGB, as published in its report on November 12, 2021. Goldman also rated the stock as ‘Neutral’.
Analysis of Gerdau S.A. ADR (GGB)
Investors in Gerdau S.A. ADR will get a return regardless of how the company performs over the next quarter since the company’s dividend stands at $0.15 per share. Further, the quarter-over-quarter decrease in sales is -2.95%, showing a negative trend in the upcoming months.
One of the most important indicators of Gerdau S.A. ADR’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of 8.98% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.49, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and GGB is recording 9.55M average volume. On a monthly basis, the volatility of the stock is set at 2.75%, whereas on a weekly basis, it is put at 3.22%, with a loss of -4.30% over the past seven days. Furthermore, long-term investors anticipate a median target price of $4.41, showing growth from the present price of $2.89, which can serve as yet another indication of whether GGB is worth investing in or should be passed over.
How Do You Analyze Gerdau S.A. ADR Shares?
The Steel market is dominated by Gerdau S.A. ADR (GGB) based in the Brazil. When comparing Gerdau S.A. ADR shares with other companies under Basic Materials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 7.55, there is a growth in quarterly earnings of -51.99%.
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.00%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 26.66% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
GGB shares are owned by institutional investors to the tune of 26.66% at present.
