Gerdau S.A. $GGB Shares Sold by SPX Gestao de Recursos Ltda

Key Points

• SPX Gestao de Recursos Ltda reduced its Gerdau stake by 13.1% in the first quarter, selling 640,273 shares and leaving it with 4.25 million shares worth about $15.4 million.
• Gerdau reported Q1 earnings below expectations, with EPS of $0.10 versus the $0.15 consensus and revenue of $3.22 billion versus estimates of $3.36 billion.
• The company raised its quarterly dividend to $0.0361 per share, and analysts currently rate the stock a Moderate Buy with a consensus price target of $5.28.

SPX Gestao de Recursos Ltda cut its holdings in shares of Gerdau S.A. (NYSE:GGB - Free Report) by 13.1% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 4,254,223 shares of the basic materials company's stock after selling 640,273 shares during the quarter. Gerdau comprises approximately 1.3% of SPX Gestao de Recursos Ltda's investment portfolio, making the stock its 21st biggest position. SPX Gestao de Recursos Ltda owned 0.21% of Gerdau worth $15,358,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of GGB. AQR Capital Management LLC raised its position in Gerdau by 65.9% in the first quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company's stock valued at $1,656,000 after purchasing an additional 231,588 shares during the period. Millennium Management LLC boosted 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 valued at $12,393,000 after acquiring an additional 1,541,311 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Gerdau by 821.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,344,175 shares of the basic materials company's stock valued at $6,657,000 after acquiring an additional 2,089,675 shares during the period. Sivia Capital Partners LLC acquired a new position in Gerdau in the 2nd quarter valued at about $51,000. Finally, Creative Planning increased its stake in Gerdau by 88.8% during the second quarter. Creative Planning now owns 70,079 shares of the basic materials company's stock worth $205,000 after purchasing an additional 32,961 shares during the period. 1.49% of the stock is owned by institutional investors and hedge funds.

Gerdau Stock Up 0.1%

Shares of Gerdau stock opened at $4.72 on Friday. The company has a quick ratio of 1.29, a current ratio of 2.76 and a debt-to-equity ratio of 0.26. Gerdau S.A. has a 52-week low of $2.83 and a 52-week high of $4.98. The company has a market capitalization of $9.45 billion, a P/E ratio of 29.53 and a beta of 1.50. The company has a 50 day moving average of $4.50 and a 200 day moving average of $4.19.

Gerdau (NYSE:GGB - Get Free Report) last issued its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 EPS for the quarter, missing analysts' consensus estimates of $0.15 by ($0.05). The firm had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. Gerdau had a return on equity of 6.76% and a net margin of 2.40%. As a group, research analysts forecast that Gerdau S.A. will post 0.53 EPS for the current fiscal year.

Gerdau Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Friday, May 15th were paid a dividend of $0.0361 per share. The ex-dividend date was Friday, May 15th. This is a positive change from Gerdau's previous quarterly dividend of $0.02. This represents a $0.14 annualized dividend and a yield of 3.1%. Gerdau's dividend payout ratio (DPR) is presently 75.00%.

Insider Transactions at Gerdau

In related news, insider Clemir Uhlein sold 38,276 shares of the company's stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $4.51, for a total value of $172,624.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Mauricio Metz sold 7,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total transaction of $33,950.00. Following the transaction, the executive vice president owned 22,536 shares in the company, valued at approximately $109,299.60. This trade represents a 23.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 671,765 shares of company stock valued at $3,200,865 over the last three months. 0.02% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

GGB has been the topic of several research reports. Scotiabank raised shares of Gerdau from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 26th. UBS Group reiterated a "buy" rating and issued a $5.25 price objective (up from $4.60) on shares of Gerdau in a research note on Wednesday, April 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of Gerdau in a report on Wednesday, June 24th. JPMorgan Chase & Co. boosted their target price on Gerdau from $5.50 to $6.00 and gave the stock an "overweight" rating in a research note on Thursday, June 25th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Gerdau has a consensus rating of "Moderate Buy" and a consensus price target of $5.28.

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.

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