Key Points
- Gerdau CEO Cunha Gustavo Werneck Da sold 432,854 shares on May 8 at an average price of $4.87, totaling about $2.11 million. The transaction cut his ownership in the company by 50%.
- Gerdau raised its quarterly dividend to $0.0361 per share, up from $0.02, payable June 16 to shareholders of record on May 15. The new payout implies an annualized dividend of about $0.14 and a yield of roughly 3.0%.
- The company recently reported weaker-than-expected quarterly results, with EPS of $0.10 versus estimates of $0.15 and revenue of $3.22 billion versus expectations of $3.36 billion. Despite that, analysts maintain a Moderate Buy consensus with a price target of $5.12.
Gerdau S.A. (NYSE:GGB - Get Free Report) CEO Cunha Gustavo Werneck Da sold 432,854 shares of the company's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $4.87, for a total value of $2,107,998.98. Following the completion of the sale, the chief executive officer directly owned 432,854 shares of the company's stock, valued at approximately $2,107,998.98. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.
Cunha Gustavo Werneck Da also recently made the following trade(s):
- On Wednesday, April 8th, Cunha Gustavo Werneck Da sold 50,000 shares of Gerdau stock. The shares were sold at an average price of $4.01, for a total value of $200,500.00.
Gerdau Stock Down 0.2%
Shares of NYSE GGB opened at $4.80 on Wednesday. The stock has a market cap of $9.59 billion, a PE ratio of 30.01 and a beta of 1.51. The company has a quick ratio of 1.29, a current ratio of 2.76 and a debt-to-equity ratio of 0.26. Gerdau S.A. has a 52-week low of $2.61 and a 52-week high of $4.98. The business has a 50-day moving average price of $3.96 and a 200 day moving average price of $3.89.
Gerdau (NYSE:GGB - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share for the quarter, missing analysts' consensus estimates of $0.15 by ($0.05). Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The company had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. Equities research analysts forecast that Gerdau S.A. will post 0.51 earnings per share for the current year.
Gerdau Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th will be paid a dividend of $0.0361 per share. This is a positive change from Gerdau's previous quarterly dividend of $0.02. The ex-dividend date of this dividend is Friday, May 15th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 3.0%. Gerdau's dividend payout ratio (DPR) is currently 37.50%.
Institutional Investors Weigh In On Gerdau
Hedge funds and other institutional investors have recently made changes to their positions in the business. Kapitalo Investimentos Ltda acquired a new position in Gerdau in the first quarter valued at $9,618,000. Allspring Global Investments Holdings LLC acquired a new position in Gerdau in the first quarter valued at $45,000. Bank of New York Mellon Corp acquired a new position in Gerdau in the first quarter valued at $46,000. J. Safra Sarasin Holding AG acquired a new position in Gerdau in the first quarter valued at $52,000. Finally, Sequoia Financial Advisors LLC boosted its holdings in Gerdau by 5.7% in the first quarter. Sequoia Financial Advisors LLC now owns 76,494 shares of the basic materials company's stock valued at $276,000 after acquiring an additional 4,151 shares during the last quarter. Hedge funds and other institutional investors own 1.49% of the company's stock.
Wall Street Analyst Weigh In
Several research firms recently weighed in on GGB. JPMorgan Chase & Co. raised their price objective on Gerdau from $5.00 to $5.50 and gave the company an "overweight" rating in a research note on Monday, April 13th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gerdau in a research note on Friday, March 27th. Itau BBA Securities raised Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price objective for the company in a research note on Wednesday, April 1st. UBS Group reaffirmed a "buy" rating and issued a $5.25 price objective (up from $4.60) on shares of Gerdau in a research note on Wednesday, April 29th. Finally, Scotiabank raised Gerdau from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Gerdau currently has a consensus rating of "Moderate Buy" and a consensus price target of $5.12.
View Our Latest Research Report on GGB
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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