Key Points
- Insider sells: Chia Yuan Wang sold a total of 155,700 Gerdau shares in April across four transactions (~$676,433), reducing their stake by 21.69% to 72,195 shares.
- Earnings and dividend: Gerdau missed Q1 estimates with $0.10 EPS vs. $0.15 expected and $3.22B revenue vs. $3.36B expected, and raised its quarterly dividend to $0.0361 ($0.14 annualized) yielding ~3.2% (ex-dividend May 15, paid June 16).
- Analyst view: MarketBeat shows a consensus rating of Moderate Buy with a $5.12 target after several firms raised ratings/targets, while GGB trades near $4.51 (12-month high $4.66).
Gerdau S.A. (NYSE:GGB - Get Free Report) insider Chia Yuan Wang sold 20,000 shares of Gerdau stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $4.54, for a total transaction of $90,800.00. Following the completion of the sale, the insider owned 72,195 shares of the company's stock, valued at $327,765.30. This trade represents a 21.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.
Chia Yuan Wang also recently made the following trade(s):
- On Tuesday, April 28th, Chia Yuan Wang sold 76,700 shares of Gerdau stock. The shares were sold at an average price of $4.49, for a total transaction of $344,383.00.
- On Friday, April 10th, Chia Yuan Wang sold 25,000 shares of Gerdau stock. The shares were sold at an average price of $4.21, for a total transaction of $105,250.00.
- On Wednesday, April 8th, Chia Yuan Wang sold 34,000 shares of Gerdau stock. The shares were sold at an average price of $4.00, for a total value of $136,000.00.
Gerdau Stock Down 0.1%
GGB opened at $4.51 on Tuesday. The business has a 50 day moving average price of $3.87 and a 200 day moving average price of $3.82. Gerdau S.A. has a twelve month low of $2.48 and a twelve month high of $4.66. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.29 and a current ratio of 2.76. The firm has a market cap of $9.00 billion, a P/E ratio of 28.16 and a beta of 1.51.
Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings results on Monday, April 27th. The basic materials company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a net margin of 2.40% and a return on equity of 6.76%. The company had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. Research analysts forecast that Gerdau S.A. will post 0.51 EPS for the current year.
Gerdau Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Friday, May 15th will be paid a $0.0361 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Friday, May 15th. This is a boost from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio (DPR) is 37.50%.
Wall Street Analyst Weigh In
A number of research analysts have weighed in on GGB shares. UBS Group reissued a "buy" rating and set a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. Itau BBA Securities upgraded Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price objective on the stock in a research note on Wednesday, April 1st. JPMorgan Chase & Co. increased their target price on Gerdau from $5.00 to $5.50 and gave the company an "overweight" rating in a research note on Monday, April 13th. Scotiabank raised Gerdau from a "hold" rating to a "strong-buy" rating in a report on Thursday, March 26th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gerdau in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Gerdau presently has a consensus rating of "Moderate Buy" and a consensus target price of $5.12.
Get Our Latest Analysis on GGB
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of GGB. Bank of America Corp DE lifted its holdings in shares of Gerdau by 162.6% during the second quarter. Bank of America Corp DE now owns 12,984,389 shares of the basic materials company's stock worth $37,914,000 after buying an additional 8,039,814 shares during the last quarter. Donald Smith & CO. Inc. lifted its holdings in shares of Gerdau by 49.2% during the fourth quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company's stock worth $89,341,000 after buying an additional 7,982,296 shares during the last quarter. Causeway Capital Management LLC lifted its holdings in shares of Gerdau by 169.2% during the third quarter. Causeway Capital Management LLC now owns 7,189,270 shares of the basic materials company's stock worth $22,287,000 after buying an additional 4,519,092 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Gerdau by 821.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,344,175 shares of the basic materials company's stock worth $6,657,000 after buying an additional 2,089,675 shares during the last quarter. Finally, Jump Financial LLC acquired a new position in shares of Gerdau during the fourth quarter worth approximately $7,400,000. 1.49% of the stock is currently owned by institutional investors and hedge funds.
About Gerdau
(
Get Free Report)
Gerdau SA is a Brazilian-based steel producer engaged in the manufacture and distribution of long steel products for the construction, industrial and agricultural sectors. Established in 1901, the company operates an integrated network of electric-arc furnaces and rolling mills, producing reinforcement bars, wire rod, merchant bars and structural shapes. Gerdau's product portfolio also includes specialty long steel, high-yield reinforcement, rail, beams and steel coils, as well as value-added processing services such as cutting, bending and coating.
The company has expanded its footprint beyond Brazil, with significant operations in North America, South America and a presence in select European markets.
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