258,000 Shares in Gerdau S.A. (NYSE:GGB) Bought by Banque Cantonale Vaudoise

Key Points

• Banque Cantonale Vaudoise purchased 258,000 shares of Gerdau S.A. valued at approximately $733,000, indicating growing institutional interest in the company.
• Gerdau recently announced a dividend yield of 295.0%, up from a previous dividend of $0.00, reflecting a positive shift in its financial performance.
• Research firms are optimistic, with UBS Group upgrading Gerdau from "neutral" to "buy" and raising the price target from $2.90 to $3.80.

Banque Cantonale Vaudoise bought a new position in Gerdau S.A. (NYSE:GGB - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 258,000 shares of the basic materials company's stock, valued at approximately $733,000.

Several other hedge funds have also added to or reduced their stakes in the business. Wolverine Trading LLC acquired a new position in shares of Gerdau in the 4th quarter valued at approximately $37,000. Xponance Inc. bought a new stake in shares of Gerdau during the first quarter worth $40,000. Sigma Planning Corp acquired a new stake in shares of Gerdau during the first quarter worth $46,000. Raymond James Financial Inc. bought a new stake in Gerdau in the 4th quarter valued at $65,000. Finally, First Trust Advisors LP acquired a new position in Gerdau in the 4th quarter worth $79,000. Institutional investors and hedge funds own 1.49% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. UBS Group raised Gerdau from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $2.90 to $3.80 in a research report on Monday, June 9th. Bank of America reiterated a "neutral" rating on shares of Gerdau in a report on Monday, April 7th.

Gerdau Stock Down 0.2%

GGB traded down $0.01 on Tuesday, hitting $2.92. 6,333,409 shares of the company were exchanged, compared to its average volume of 11,845,180. The stock's fifty day moving average is $2.95 and its 200-day moving average is $2.85. Gerdau S.A. has a 12 month low of $2.27 and a 12 month high of $3.62. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.50 and a current ratio of 2.89. The company has a market cap of $6.06 billion, a PE ratio of 10.07, a PEG ratio of 1.23 and a beta of 1.36.

Gerdau (NYSE:GGB - Get Free Report) last posted its earnings results on Thursday, July 31st. The basic materials company reported $0.08 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.01). The business had revenue of $3.13 billion for the quarter, compared to analyst estimates of $3.22 billion. Gerdau had a return on equity of 6.51% and a net margin of 4.81%. Equities research analysts predict that Gerdau S.A. will post 0.46 EPS for the current fiscal year.

Gerdau Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 25th. Shareholders of record on Wednesday, August 13th will be given a dividend of $0.0216 per share. This represents a $0.09 annualized dividend and a yield of 3.0%. The ex-dividend date is Wednesday, August 13th. This is a positive change from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio (DPR) is 27.59%.

Gerdau Company Profile

Gerdau SA, together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.