Key Points
- Insider selling continued: Gerdau insider Chia Yuan Wang sold 30,935 shares on June 2 at an average price of $4.49, bringing in about $138,898. This follows several other recent sales over the past few weeks.
- Quarterly results missed expectations: Gerdau reported EPS of $0.10, below analyst estimates of $0.15, on revenue of $3.22 billion versus the expected $3.36 billion. The company’s latest earnings also showed a 6.76% return on equity and a 2.40% net margin.
- Dividend and analyst sentiment: Gerdau raised its quarterly dividend to $0.0361 per share, implying a 3.0% annualized yield. Analysts currently rate the stock a Moderate Buy with an average price target of $5.12.
Gerdau S.A. (NYSE:GGB - Get Free Report) EVP Mauricio Metz sold 7,000 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total value of $33,950.00. Following the completion of the sale, the executive vice president directly owned 22,536 shares in the company, valued at $109,299.60. This represents a 23.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.
Mauricio Metz also recently made the following trade(s):
- On Tuesday, May 26th, Mauricio Metz sold 5,000 shares of Gerdau stock. The stock was sold at an average price of $4.70, for a total value of $23,500.00.
- On Wednesday, May 13th, Mauricio Metz sold 5,000 shares of Gerdau stock. The stock was sold at an average price of $4.85, for a total value of $24,250.00.
- On Tuesday, May 5th, Mauricio Metz sold 2,000 shares of Gerdau stock. The stock was sold at an average price of $4.69, for a total value of $9,380.00.
- On Tuesday, April 28th, Mauricio Metz sold 1,000 shares of Gerdau stock. The stock was sold at an average price of $4.53, for a total value of $4,530.00.
- On Friday, April 10th, Mauricio Metz sold 1,000 shares of Gerdau stock. The stock was sold at an average price of $4.24, for a total value of $4,240.00.
Gerdau Price Performance
Shares of NYSE GGB opened at $4.76 on Thursday. Gerdau S.A. has a 1-year low of $2.80 and a 1-year high of $4.98. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29. The business's fifty day moving average price is $4.33 and its two-hundred day moving average price is $4.02. The firm has a market capitalization of $9.51 billion, a PE ratio of 29.72 and a beta of 1.48.
Gerdau (NYSE:GGB - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $0.10 EPS 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, research analysts expect that Gerdau S.A. will post 0.5 EPS for the current year.
Gerdau Increases Dividend
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th will be issued a dividend of $0.0361 per share. This represents a $0.14 dividend on an annualized basis and a dividend 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 75.00%.
Analyst Ratings Changes
A number of brokerages have recently commented on GGB. JPMorgan Chase & Co. raised their price target on Gerdau from $5.00 to $5.50 and gave the company an "overweight" rating in a report on Monday, April 13th. Itau BBA Securities raised Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price target on the stock in a report on Wednesday, April 1st. Scotiabank raised Gerdau from a "hold" rating to a "strong-buy" rating in a report on Thursday, March 26th. Weiss Ratings reissued a "hold (c)" rating on shares of Gerdau in a report on Friday, March 27th. Finally, UBS Group reissued a "buy" rating and set a $5.25 price target (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Gerdau presently has a consensus rating of "Moderate Buy" and a consensus price target of $5.12.
Get Our Latest Stock Analysis on Gerdau
Institutional Inflows and Outflows
Hedge funds have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in 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 acquiring an additional 3,931 shares during the period. Wealthstream Advisors Inc. acquired a new position in Gerdau during the third quarter worth about $32,000. EverSource Wealth Advisors LLC grew its holdings in 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 acquiring an additional 5,216 shares during the period. Greenspring Advisors LLC acquired a new position in Gerdau during the fourth quarter worth about $40,000. Finally, Aster Capital Management DIFC Ltd acquired a new position in Gerdau during the third quarter worth about $34,000. 1.49% of the stock is 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.
Further Reading

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