Key Points
- Insider sale: Gerdau insider Cesar Obino Da Rosa Peres sold 8,000 shares on May 19 at an average price of $4.60, reducing his ownership by 99.90% to just 8 shares.
- Dividend boost: The company raised its quarterly dividend to $0.0361 per share, or $0.14 annualized, for a 3.0% yield. The payout will be made on June 16.
- Mixed fundamentals and outlook: Gerdau recently missed quarterly earnings and revenue estimates, but analysts still view the stock favorably overall with a consensus rating of Moderate Buy and an average target price of $5.12.
Gerdau S.A. (NYSE:GGB - Get Free Report) insider Cesar Obino Da Rosa Peres sold 8,000 shares of Gerdau stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $4.60, for a total transaction of $36,800.00. Following the transaction, the insider directly owned 8 shares in the company, valued at approximately $36.80. This trade represents a 99.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.
Gerdau Trading Up 1.2%
Shares of GGB stock opened at $4.76 on Friday. The stock has a market cap of $9.51 billion, a price-to-earnings ratio of 29.72 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 fifty-two week low of $2.61 and a fifty-two week high of $4.98. The firm's 50 day moving average price is $4.12 and its two-hundred day moving average price is $3.95.
Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings results 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). The business had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. Gerdau had a net margin of 2.40% and a return on equity of 6.76%. On average, analysts anticipate that Gerdau S.A. will post 0.51 EPS for the current year.
Gerdau Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Friday, May 15th will be given a dividend of $0.0361 per share. This represents a $0.14 dividend on an annualized basis and a yield of 3.0%. 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. Gerdau's dividend payout ratio is presently 75.00%.
Analyst Ratings Changes
A number of research analysts have recently commented on the stock. Scotiabank raised shares of Gerdau from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 26th. Weiss Ratings reissued a "hold (c)" rating on shares of Gerdau in a research report on Friday, March 27th. 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 raised shares of Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 target price on the stock in a research report on Wednesday, April 1st. Finally, JPMorgan Chase & Co. boosted their target price on shares of Gerdau from $5.00 to $5.50 and gave the stock an "overweight" rating in a research report on Monday, April 13th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $5.12.
Get Our Latest Stock Report on GGB
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in GGB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Gerdau by 68.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company's stock worth $28,000 after purchasing an additional 3,931 shares during the period. EverSource Wealth Advisors LLC raised its holdings in shares of Gerdau by 95.3% during the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company's stock worth $31,000 after purchasing an additional 5,216 shares during the period. Wealthstream Advisors Inc. acquired a new stake in shares of Gerdau during the third quarter worth $32,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Gerdau during the third quarter worth $34,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Gerdau during the third quarter worth $34,000. 1.49% of the stock is owned by institutional investors and hedge funds.
Gerdau Company Profile
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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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