Gerdau (NYSE:GGB) Issues Earnings Results
by Teresa Graham · The Cerbat GemGerdau (NYSE:GGB – Get Free Report) issued its quarterly earnings data on Monday. The basic materials company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.02), Zacks reports. Gerdau had a return on equity of 6.20% and a net margin of 1.93%.
Gerdau Stock Performance
NYSE GGB traded down $0.02 on Monday, hitting $4.30. 11,963,158 shares of the stock traded hands, compared to its average volume of 19,941,648. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.40 and a current ratio of 2.89. The business’s fifty day moving average is $3.84 and its two-hundred day moving average is $3.79. Gerdau has a 12 month low of $2.48 and a 12 month high of $4.66. The firm has a market capitalization of $8.58 billion, a price-to-earnings ratio of 35.79 and a beta of 1.44.
Gerdau Cuts Dividend
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 12th were paid a $0.0194 dividend. The ex-dividend date was Thursday, March 12th. This represents a $0.08 annualized dividend and a yield of 1.8%. Gerdau’s dividend payout ratio is presently 41.67%.
Analysts Set New Price Targets
Several equities analysts have commented on GGB shares. JPMorgan Chase & Co. lifted 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. UBS Group increased their price target on Gerdau from $4.40 to $4.60 and gave the company a “buy” rating in a research report on Thursday, April 2nd. Itau BBA Securities upgraded 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 upgraded Gerdau from a “hold” rating to a “strong-buy” rating in a research note on Thursday, March 26th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $4.90.
View Our Latest Analysis on GGB
Insider Transactions at Gerdau
In other news, CEO Cunha Gustavo Werneck Da sold 50,000 shares of the company’s stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $4.01, for a total transaction of $200,500.00. Following the transaction, the chief executive officer owned 138,080 shares of the company’s stock, valued at $553,700.80. This represents a 26.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Marcos Eduardo Fara Wahrhaftig sold 12,419 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $4.06, for a total value of $50,421.14. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 208,026 shares of company stock valued at $778,058. Corporate insiders own 0.02% of the company’s stock.
Institutional Investors Weigh In On Gerdau
Hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE lifted its position in shares of Gerdau by 22.4% during the third quarter. Bank of America Corp DE now owns 15,894,871 shares of the basic materials company’s stock worth $49,274,000 after acquiring an additional 2,910,482 shares in the last quarter. SPX Gestao de Recursos Ltda raised its stake in shares of Gerdau by 9.0% during the 4th quarter. SPX Gestao de Recursos Ltda now owns 4,894,496 shares of the basic materials company’s stock valued at $18,061,000 after purchasing an additional 403,454 shares during the period. Millennium Management LLC lifted its holdings in Gerdau by 54.6% during the 1st quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock worth $12,393,000 after purchasing an additional 1,541,311 shares in the last quarter. Mackenzie Financial Corp boosted its stake in Gerdau by 80.6% in the 4th quarter. Mackenzie Financial Corp now owns 4,117,253 shares of the basic materials company’s stock worth $15,286,000 after purchasing an additional 1,837,160 shares during the period. Finally, State Street Corp boosted its stake in Gerdau by 5.7% in the 4th quarter. State Street Corp now owns 3,531,028 shares of the basic materials company’s stock worth $13,029,000 after purchasing an additional 190,483 shares during the period. Institutional investors own 1.49% of the company’s stock.
Gerdau Company Profile
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.