Key Points
- Gerdau CFO Rafael Dorneles Japur sold 5,000 shares on May 22 at an average price of $4.75, totaling $23,750. After the sale, he still directly owned 96,967 shares, a 4.9% reduction in his stake.
- The company increased its quarterly dividend to $0.0361 per share from $0.02, which annualizes to $0.14 per share and a 3.1% yield. The dividend is payable on June 16 to shareholders of record on May 15.
- Analyst sentiment remains constructive despite mixed earnings: Gerdau recently missed EPS and revenue estimates, but brokerages have mostly positive views, with an average rating of Moderate Buy and an average price target of $5.12.
Gerdau S.A. (NYSE:GGB - Get Free Report) CFO Rafael Dorneles Japur sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $4.75, for a total transaction of $23,750.00. Following the transaction, the chief financial officer directly owned 96,967 shares in the company, valued at $460,593.25. This represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website.
Gerdau Stock Performance
Shares of NYSE:GGB opened at $4.70 on Wednesday. The company's 50 day simple moving average is $4.17 and its 200 day simple moving average is $3.97. The stock has a market capitalization of $9.40 billion, a price-to-earnings ratio of 29.38 and a beta of 1.51. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29. Gerdau S.A. has a 1 year low of $2.61 and a 1 year high of $4.98.
Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.15 by ($0.05). The firm had revenue of $3.22 billion during the quarter, compared to the consensus estimate of $3.36 billion. Gerdau had a net margin of 2.40% and a return on equity of 6.76%. As a group, research analysts predict that Gerdau S.A. will post 0.51 EPS for the current fiscal year.
Gerdau Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Friday, May 15th will be given a $0.0361 dividend. This is an increase from Gerdau's previous quarterly dividend of $0.02. This represents a $0.14 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, May 15th. Gerdau's dividend payout ratio (DPR) is 75.00%.
Analysts Set New Price Targets
A number of brokerages have weighed in on GGB. Itau BBA Securities upgraded 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. JPMorgan Chase & Co. raised their target price on shares of Gerdau from $5.00 to $5.50 and gave the company an "overweight" rating in a research report on Monday, April 13th. UBS Group restated a "buy" rating and issued a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. Weiss Ratings restated a "hold (c)" rating on shares of Gerdau in a research report on Friday, March 27th. Finally, Scotiabank upgraded shares of Gerdau from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 26th. One 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 stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $5.12.
Read Our Latest Stock Analysis on Gerdau
Institutional Trading of Gerdau
Hedge funds have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted 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 lifted 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 position in shares of Gerdau during the third quarter worth $32,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Gerdau during the third quarter worth $34,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Gerdau during the third quarter worth $34,000. Institutional investors and hedge funds own 1.49% of the company's stock.
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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