Gerdau Drops 4.5% as Steel Tariffs Fail to Lift Brazil

Gerdau SA Pref (GGBR4) stock fell 5.2% to R$22.94 after Itaú BBA downgraded it to Market Perform, citing cooling steel market conditions and limited upside. Insider selling and sector-wide pressures from Chinese imports also contributed to the decline, with the stock trading near R$22-23, a range seen as more balanced by analysts.

Gerdau S.A. reported Q2 2026 net profit of R$1.466 billion (US$287 million), up 69.7% year on year, and adjusted EBITDA of R$3.430 billion (US$671.6 million), up 33.9%, according to the company. Revenue was R$18 billion (US$3.52 billion). The board approved a R$0.23 per-share dividend, totaling R$451.3 million, with North America driving stronger margins.

Gerdau S.A. (NYSE:GGB) is highlighted by hedge funds as a top NYSE penny stock. The article cites a median 1-year price target of $5.63 and notes JPMorgan raised its target to $6 and reiterated Overweight. It also says Gerdau agreed to buy Copel’s 23.03% stake in Dona Francisca Energĩ S.A. for about 150 million reais ($27 million).

Gerdau S.A. (NYSE:GGB) said it agreed to buy Companhia Paranaense de Energia’s 23.03% stake in the Dona Francisca hydro plant for an enterprise value of $29.6 million, according to the company. The deal gives Gerdau full ownership of the 125 MW plant in Brazil’s Rio Grande do Sul state and is expected to add about 30.4 MW to its self-generation capacity.

PG&E and Edison International shares fell after California lawmakers blocked Governor Newsom's proposal to limit wildfire liability for utilities. PG&E dropped 10% and Edison International fell 3.5%. The plan aimed to shift costs to insurers, but lawmakers rejected it, citing potential premium increases and market destabilization. The governor's office will propose alternative measures, including banning CEO bonuses tied to wildfires.

Amazon.com Inc. shares rose nearly 4% after Evercore ISI raised its price target to $355, citing AI-driven sales growth. The firm's survey showed 57% of Alexa AI users bought new products. AWS revenue grew 37% YoY. Amazon's Q2 revenue was $200.6B, exceeding expectations. CEO Andy Jassy noted capacity constraints for AI demand.