30,803,036 Shares of Gerdau S.A. $GGB Purchased by Ninety One UK Ltd

Key Points

• Ninety One UK Ltd acquired 30.8 million Gerdau shares worth approximately $145.4 million, giving it a 1.57% stake. Other institutional investors also increased their holdings, though institutions collectively own just 1.49% of the company.
• Gerdau insiders sold 147,407 shares worth about $737,561 during the quarter, while the stock recently traded down 1.6% to $5.08. The company reported quarterly revenue of $3.45 billion and earnings of $0.15 per share, in line with estimates.
• Gerdau raised its quarterly dividend to $0.0448, representing an annualized yield of about 3.5%. Analysts maintain a consensus “Moderate Buy” rating with a target price of $5.57.

Ninety One UK Ltd acquired a new position in shares of Gerdau S.A. (NYSE:GGB - Free Report) in the 3rd quarter, according to its most recent filing with the SEC. The fund acquired 30,803,036 shares of the basic materials company's stock, valued at approximately $145,390,000. Ninety One UK Ltd owned approximately 1.57% of Gerdau at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in the company. QRG Capital Management Inc. lifted its holdings in Gerdau by 11.9% in the 1st quarter. QRG Capital Management Inc. now owns 30,100 shares of the basic materials company's stock valued at $109,000 after purchasing an additional 3,196 shares in the last quarter. Tidal Investments LLC boosted its stake in shares of Gerdau by 1.9% during the 2nd quarter. Tidal Investments LLC now owns 176,888 shares of the basic materials company's stock worth $715,000 after purchasing an additional 3,292 shares during the last quarter. Sequoia Financial Advisors LLC grew its holdings in shares of Gerdau by 5.7% during the first quarter. Sequoia Financial Advisors LLC now owns 76,494 shares of the basic materials company's stock worth $276,000 after buying an additional 4,151 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Gerdau by 57.6% during the first quarter. EverSource Wealth Advisors LLC now owns 13,243 shares of the basic materials company's stock worth $48,000 after buying an additional 4,842 shares in the last quarter. Finally, State of Wyoming raised its position in shares of Gerdau by 36.1% in the first quarter. State of Wyoming now owns 32,986 shares of the basic materials company's stock valued at $119,000 after buying an additional 8,758 shares during the last quarter. Institutional investors and hedge funds own 1.49% of the company's stock.

Insider Activity

In other news, EVP Rafael Lopes sold 51,800 shares of the stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $5.09, for a total value of $263,662.00. Following the completion of the sale, the executive vice president owned 83,399 shares in the company, valued at approximately $424,500.91. This trade represents a 38.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Claudio Johannpeter sold 85,607 shares of the firm's stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $4.94, for a total value of $422,898.58. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 147,407 shares of company stock worth $737,561. 0.02% of the stock is currently owned by corporate insiders.

Gerdau Trading Down 1.6%

Shares of NYSE GGB traded down $0.09 during midday trading on Thursday, hitting $5.08. The stock had a trading volume of 7,259,012 shares, compared to its average volume of 17,014,063. 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 S.A. has a 1-year low of $3.14 and a 1-year high of $5.48. The company has a market capitalization of $9.98 billion, a price-to-earnings ratio of 22.07 and a beta of 1.48. The company has a fifty day moving average price of $4.86 and a 200 day moving average price of $4.60.

Gerdau (NYSE:GGB - Get Free Report) last posted 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. Gerdau had a net margin of 3.37% and a return on equity of 7.97%. The business had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.41 billion. On average, analysts predict that Gerdau S.A. will post 0.55 earnings per share for the current year.

Gerdau Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, August 21st were given a $0.0448 dividend. The ex-dividend date of this dividend was Friday, August 21st. This is a positive change from Gerdau's previous quarterly dividend of $0.0361. This represents a $0.18 annualized dividend and a dividend yield of 3.5%. Gerdau's dividend payout ratio (DPR) is currently 65.22%.

Wall Street Analyst Weigh In

GGB has been the topic of a number of analyst reports. UBS Group restated a "buy" rating and set a $6.10 target price (up from $5.70) on shares of Gerdau in a research report on Thursday, August 27th. Weiss Ratings raised shares of Gerdau from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday. Itau BBA Securities downgraded Gerdau from an "outperform" rating to a "market perform" rating in a report on Monday, August 10th. HSBC lowered Gerdau from a "buy" rating to a "hold" rating in a research note on Thursday, August 20th. Finally, The Goldman Sachs Group cut Gerdau to a "neutral" rating in a report on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $5.57.

Gerdau Company Profile

Gerdau SA is a Brazilian steel producer and one of the major suppliers of long steel in the Americas. The company manufactures products including rebar, wire rod, structural shapes, merchant bars and other steel products used in construction, infrastructure, industrial manufacturing and agricultural equipment.

Gerdau also produces special steel for the automotive, machinery and other industrial sectors, as well as flat steel products through its operations in Brazil. Its business includes steel recycling, with a significant portion of its production based on ferrous scrap, and the company operates a network of steel mills, fabrication facilities and distribution centers.

Founded in Brazil in 1901, Gerdau serves customers across Brazil, North America and South America.

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.