2,664,158 Shares in Gerdau S.A. $GGB Acquired by Kapitalo Investimentos Ltda

Key Points

• Kapitalo Investimentos Ltda bought 2,664,158 shares of Gerdau in the first quarter, a stake valued at about $9.6 million and representing 0.13% of the company.
• Gerdau reported mixed quarterly results, with earnings of $0.10 per share missing estimates and revenue of $3.22 billion below forecasts. Analysts still expect the company to earn about $0.53 per share this year.
• The company raised its quarterly dividend to $0.0361 per share, implying an annualized yield of 3.1%, while analysts currently rate the stock a consensus Moderate Buy with an average target price of $5.28.

Kapitalo Investimentos Ltda purchased a new stake in shares of Gerdau S.A. (NYSE:GGB - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 2,664,158 shares of the basic materials company's stock, valued at approximately $9,618,000. Gerdau makes up about 1.8% of Kapitalo Investimentos Ltda's investment portfolio, making the stock its 19th largest position. Kapitalo Investimentos Ltda owned 0.13% of Gerdau as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of GGB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of 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 purchasing an additional 3,931 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Gerdau by 95.3% in the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company's stock valued at $31,000 after buying an additional 5,216 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Gerdau during the 3rd quarter worth about $34,000. Coldstream Capital Management Inc. acquired a new position in Gerdau during the 3rd quarter worth about $37,000. Finally, Greenspring Advisors LLC bought a new stake in Gerdau during the 4th quarter worth about $40,000. Institutional investors own 1.49% of the company's stock.

Gerdau Stock Down 1.0%

Shares of NYSE:GGB opened at $4.67 on Tuesday. Gerdau S.A. has a one year low of $2.85 and a one year high of $4.98. The company has a 50 day moving average of $4.50 and a 200-day moving average of $4.20. 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 stock has a market cap of $9.35 billion, a price-to-earnings ratio of 29.22 and a beta of 1.50.

Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a net margin of 2.40% and a return on equity of 6.76%. The business had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.36 billion. On average, sell-side analysts forecast that Gerdau S.A. will post 0.53 earnings per share for the current year.

Gerdau Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th were paid a $0.0361 dividend. This is an increase from Gerdau's previous quarterly dividend of $0.02. The ex-dividend date of this dividend was Friday, May 15th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 3.1%. Gerdau's dividend payout ratio (DPR) is currently 75.00%.

Analyst Upgrades and Downgrades

GGB has been the subject of a number of research analyst reports. Scotiabank raised shares of Gerdau from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 26th. Itau BBA Securities raised shares of Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price target on the stock in a research note on Wednesday, April 1st. UBS Group restated a "buy" rating and issued a $5.25 price objective (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gerdau in a report on Wednesday, June 24th. Finally, JPMorgan Chase & Co. increased their price objective on Gerdau from $5.50 to $6.00 and gave the company an "overweight" rating in a research report on Thursday, June 25th. 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. According to data from MarketBeat.com, Gerdau presently has a consensus rating of "Moderate Buy" and an average target price of $5.28.

Insider Buying and Selling

In other news, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the firm's stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $4.60, for a total value of $36,800.00. Following the transaction, the insider directly owned 8 shares in the company, valued at $36.80. This trade represents a 99.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Clemir Uhlein sold 38,276 shares of the company's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $4.51, for a total value of $172,624.76. The SEC filing for this sale provides additional information. Insiders have sold a total of 671,765 shares of company stock worth $3,200,865 over the last 90 days. 0.02% of the stock is currently owned by corporate insiders.

About Gerdau

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.