Key Points
- Insider sale: Chairman Claudio Johannpeter sold 85,607 Gerdau shares at an average price of $4.94, generating approximately $422,899 in proceeds.
- Financial performance and dividend: Gerdau met quarterly earnings expectations with EPS of $0.15 and revenue of $3.45 billion. The company raised its quarterly dividend to $0.0448, equivalent to an annualized yield of about 3.7%.
- Market outlook: Gerdau shares traded near $4.84, while analysts maintained a consensus “Hold” rating with an average price target of $5.57; institutional ownership stood at 1.49%.
Gerdau S.A. (NYSE:GGB - Get Free Report) Chairman Claudio Johannpeter sold 85,607 shares of the stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $4.94, for a total transaction of $422,898.58. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.
Gerdau Trading Up 1.1%
GGB opened at $4.84 on Friday. The firm's 50 day moving average is $4.83 and its 200-day moving average is $4.45. Gerdau S.A. has a 52-week low of $3.06 and a 52-week high of $5.18. The company has a quick ratio of 1.30, a current ratio of 2.87 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $9.51 billion, a P/E ratio of 21.07 and a beta of 1.49.
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 for the quarter, meeting the consensus estimate of $0.15. The business had revenue of $3.45 billion during the quarter, compared to the consensus estimate of $3.41 billion. Gerdau had a net margin of 3.37% and a return on equity of 7.97%. Analysts expect that Gerdau S.A. will post 0.55 EPS for the current fiscal year.
Gerdau Increases Dividend
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, August 21st were issued a $0.0448 dividend. The ex-dividend date was Friday, August 21st. This represents a $0.18 dividend on an annualized basis and a yield of 3.7%. This is an increase from Gerdau's previous quarterly dividend of $0.0361. Gerdau's dividend payout ratio (DPR) is presently 65.22%.
Institutional Inflows and Outflows
Large investors have recently added to or reduced their stakes in the stock. B. Metzler seel. Sohn & Co. AG acquired a new position in Gerdau during the 2nd quarter worth $2,109,000. Sei Investments Co. increased its position in shares of Gerdau by 282.3% in the 1st quarter. Sei Investments Co. now owns 1,078,917 shares of the basic materials company's stock worth $3,895,000 after purchasing an additional 796,724 shares during the last quarter. Engineers Gate Manager LP raised its stake in shares of Gerdau by 124.7% in the 2nd quarter. Engineers Gate Manager LP now owns 7,010,275 shares of the basic materials company's stock valued at $28,322,000 after purchasing an additional 3,890,093 shares in the last quarter. Bank of America Corp DE lifted its position 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 worth $47,734,000 after purchasing an additional 13,107,580 shares during the last quarter. Finally, Donald Smith & CO. Inc. lifted its position in shares of Gerdau by 49.2% during the fourth quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company's stock worth $89,341,000 after purchasing an additional 7,982,296 shares during the last quarter. 1.49% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In
Several brokerages have recently weighed in on GGB. Weiss Ratings upgraded Gerdau from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group cut Gerdau to a "neutral" rating in a research note on Monday, August 24th. Itau BBA Securities downgraded Gerdau from an "outperform" rating to a "market perform" rating in a report on Monday, August 10th. Bank of America downgraded Gerdau from a "buy" rating to a "neutral" rating and set a $5.10 price target for the company. in a report on Thursday, August 20th. Finally, UBS Group restated a "buy" rating and set a $6.10 price objective (up from $5.70) on shares of Gerdau in a research note on Thursday, August 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $5.57.
Read Our Latest Stock Report on Gerdau
Gerdau Company Profile
(
Get Free Report)
Gerdau SA is a Brazil-based steel producer whose American depositary shares trade on the New York Stock Exchange under the symbol GGB. The company manufactures and sells steel products for construction, industrial, agricultural, automotive and other end markets.
Its product portfolio includes long steel products such as rebar, wire rod, structural sections and merchant bars, as well as specialty steel and selected flat steel products. Gerdau also operates steel mills and scrap-processing facilities, using recycled ferrous scrap as an important raw material, and has activities connected with iron ore and other steelmaking inputs.
Founded in 1901, Gerdau has expanded from its Brazilian origins into one of the major steel producers in the Americas.
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