Gerdau (NYSE:GGB) Trading Down 4.2% - Here's Why

Gerdau S.A. (NYSE:GGB - Get Free Report)'s share price traded down 4.2% during mid-day trading on Wednesday . The stock traded as low as $3.17 and last traded at $3.17. 4,484,656 shares changed hands during mid-day trading, a decline of 48% from the average session volume of 8,603,465 shares. The stock had previously closed at $3.31.

Gerdau Stock Performance

The company has a market capitalization of $6.42 billion, a PE ratio of 6.74 and a beta of 1.73. The firm's 50-day simple moving average is $3.33 and its 200-day simple moving average is $3.30. The company has a current ratio of 2.98, a quick ratio of 1.53 and a debt-to-equity ratio of 0.21.

Gerdau Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 23rd. Investors of record on Thursday, November 21st will be paid a $0.0528 dividend. The ex-dividend date is Thursday, November 21st. This represents a $0.21 annualized dividend and a yield of 6.84%. This is a boost from Gerdau's previous quarterly dividend of $0.00. Gerdau's dividend payout ratio is 43.48%.

Hedge Funds Weigh In On Gerdau

Institutional investors have recently made changes to their positions in the company. Bank of New York Mellon Corp grew its holdings in Gerdau by 52.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 284,272 shares of the basic materials company's stock worth $938,000 after acquiring an additional 98,126 shares in the last quarter. Banco Santander S.A. increased its holdings in Gerdau by 58.4% during the second quarter. Banco Santander S.A. now owns 77,552 shares of the basic materials company's stock valued at $256,000 after buying an additional 28,581 shares during the period. Crossmark Global Holdings Inc. raised its stake in Gerdau by 9.6% in the second quarter. Crossmark Global Holdings Inc. now owns 124,888 shares of the basic materials company's stock worth $412,000 after buying an additional 10,888 shares in the last quarter. Commonwealth Equity Services LLC raised its stake in Gerdau by 1,706.6% in the second quarter. Commonwealth Equity Services LLC now owns 288,519 shares of the basic materials company's stock worth $952,000 after buying an additional 272,549 shares in the last quarter. Finally, Banque Cantonale Vaudoise lifted its holdings in Gerdau by 20.0% during the second quarter. Banque Cantonale Vaudoise now owns 258,000 shares of the basic materials company's stock worth $851,000 after buying an additional 43,000 shares during the period. Hedge funds and other institutional investors own 1.49% of the company's stock.

Gerdau Company Profile

Gerdau SA, together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.