The stock of Gerdau S.A. (NYSE:GGB) is now priced at $3.59 and the shares are 0.32 points up or 9.79% higher compared to its previous closing price of $3.27. The stock had 8.769 million contracts set over the past session. GGB shares’ daily volume is compared to its average trading volume at 8.682 million shares. However, it has a float of 1090 million and although its performance was 7.16% over the week, it’s one to watch. Analysts have given the GGB stock a yearly average price target of $4.31 per share. It means the stock’s upside potential is 20.06% with the GGB share price recently placing at $3.37 to $3.6. However, some brokerage firms have priced the stock below the average, including one that has called $1.69.
The shorts are running away from the Gerdau S.A. stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the GGB shares have declined. Short interest in the stock represents just 2.07% of its float, but the volume has dropped by 0.
In the last trading session, Gerdau S.A. (NYSE:GGB) raised by $0.24 over the week and gained $0.49 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $5.34. The stock recorded its established 52-week high on 01/24/20.
Since 03/23/20, the stock has traded to a low of $1.65 at 117.58%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 2.25. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Gerdau S.A.’s two-week RSI is 64.3. This suggests that the stock is neutral at the moment and that GGB shares’ price movement remains stable. The stochastic readings are equally revealing at 48.33% meaning the GGB share price is currently in neutral territory.
The technical chart shows that the GGB stock will likely settle at between $3.67 and $3.75 per share. However, if the stock dips below $3.44, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $3.29.
Currently, the stock is trading in the green of MACD, with a reading of 0.04. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Itau BBA raised their recommendation for GGB from Market Perform to Outperform in July 24 review. JP Morgan analysts downgraded their recommendation of the stock from Overweight to Neutral in a flash note released to investors on June 22. BofA/Merrill seeing the stock struggling downgraded it from Neutral to Underperform on June 08.
The average rating for the GGB equity is 3 and is currently gathering a bullish momentum. Of 3 analysts tracking Gerdau S.A. polled by Reuters, 1 rated GGB as a hold. The remaining 2 analysts were split evenly. However, the split wasn’t equal as a majority (1) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the GGB stock price is 19.1X ahead of its 12-month Consensus earnings per share estimates.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Gerdau S.A. (NYSE:GGB) will decrease by about -79.65%, which will see them reach $1.78 billion. The company’s full-year revenues are, however, expected to diminish by about -8.72%, down from $7340 million to $6700 million. GGB’s expected adjusted earnings should surge almost 100% to end up at $0.08 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -76.92% to record $0.03/share.