Key Points
- Insider sale: Gerdau insider Marcos Zilles Mattiello sold 10,387 shares at an average price of $5.11, generating proceeds of $53,077.57.
- Financial and dividend update: Gerdau reported quarterly EPS of $0.15, in line with estimates, and revenue of $3.45 billion, above expectations. The company raised its quarterly dividend to $0.0448, equivalent to an annualized yield of about 3.8%.
- Market sentiment: Analysts maintain a “Moderate Buy” consensus with an average price target of $5.28, while several institutional investors recently increased or initiated positions in the stock.
Gerdau S.A. (NYSE:GGB - Get Free Report) insider Marcos Zilles Mattiello sold 10,387 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $5.11, for a total value of $53,077.57. The transaction was disclosed in a filing with the SEC, which is available at this link.
Gerdau Price Performance
GGB stock opened at $4.74 on Friday. Gerdau S.A. has a 52 week low of $2.85 and a 52 week high of $5.18. The firm has a market capitalization of $9.47 billion, a P/E ratio of 20.59 and a beta of 1.48. The company has a fifty day simple moving average of $4.58 and a two-hundred day simple moving average of $4.31. The company has a quick ratio of 1.30, a current ratio of 2.87 and a debt-to-equity ratio of 0.26.
Gerdau (NYSE:GGB - Get Free Report) last announced its earnings results on Tuesday, August 4th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.15. Gerdau had a net margin of 3.37% and a return on equity of 7.97%. The firm had revenue of $3.45 billion for the quarter, compared to analysts' expectations of $3.41 billion. Analysts anticipate that Gerdau S.A. will post 0.53 earnings per share for the current fiscal year.
Gerdau Increases Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, August 21st will be given a $0.0448 dividend. This is a boost from Gerdau's previous quarterly dividend of $0.04. This represents a $0.18 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date is Friday, August 21st. Gerdau's dividend payout ratio is 52.17%.
Analyst Ratings Changes
Several analysts have issued reports on GGB shares. JPMorgan Chase & Co. raised their price objective on shares of Gerdau from $5.50 to $6.00 and gave the stock an "overweight" rating in a research note on Thursday, June 25th. Weiss Ratings raised Gerdau from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 5th. Itau BBA Securities lowered Gerdau from an "outperform" rating to a "market perform" rating in a research note on Monday. Finally, UBS Group restated a "buy" rating and set a $5.25 price objective (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $5.28.
View Our Latest Analysis on Gerdau
Institutional Investors Weigh In On Gerdau
Large investors have recently added to or reduced their stakes in the stock. Donald Smith & CO. Inc. purchased a new position in shares of Gerdau during the second quarter worth approximately $70,663,000. Bank of America Corp DE raised its stake in shares of Gerdau by 11,393.6% during the first quarter. Bank of America Corp DE now owns 13,222,623 shares of the basic materials company's stock valued at $47,734,000 after acquiring an additional 13,107,580 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Gerdau by 76.1% in the first quarter. Renaissance Technologies LLC now owns 10,936,524 shares of the basic materials company's stock valued at $39,481,000 after purchasing an additional 4,725,200 shares during the period. Assenagon Asset Management S.A. bought a new position in Gerdau in the second quarter worth approximately $16,291,000. Finally, Kapitalo Investimentos Ltda purchased a new position in Gerdau during the 1st quarter worth $9,618,000. 1.49% of the stock is owned by hedge funds and other institutional investors.
Gerdau Company Profile
(
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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