Gerdau S.A. $GGB Stock Sold by Kapitalo Investimentos Ltda

Key Points

• Kapitalo Investimentos cut its Gerdau stake by 98.7% in the third quarter, selling 1.38 million shares and retaining 18,806 shares valued at approximately $89,000. Institutional investors collectively own 1.49% of Gerdau.
• Gerdau shares rose 2.0% to $5.24, near their 52-week high of $5.48. Analysts have a consensus “Moderate Buy” rating and an average price target of $5.57, while recent targets include JPMorgan’s $6.50.
• The company increased its quarterly dividend to $0.0448 per share, equivalent to an annualized $0.18 dividend and a 3.4% yield. Recent results met earnings expectations at $0.15 per share and exceeded revenue estimates with $3.45 billion.

Kapitalo Investimentos Ltda reduced its holdings in Gerdau S.A. (NYSE:GGB - Free Report) by 98.7% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 18,806 shares of the basic materials company's stock after selling 1,381,211 shares during the quarter. Kapitalo Investimentos Ltda's holdings in Gerdau were worth $89,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the business. Greenspring Advisors LLC bought a new position in shares of Gerdau during the 2nd quarter worth approximately $47,000. SmartHarvest Portfolios LLC acquired a new stake in shares of Gerdau during the 1st quarter worth approximately $43,000. Allspring Global Investments Holdings LLC acquired a new stake in shares of Gerdau during the 1st quarter worth approximately $45,000. Bank of New York Mellon Corp bought a new stake in shares of Gerdau in the 1st quarter valued at $46,000. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Gerdau by 57.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 13,243 shares of the basic materials company's stock valued at $48,000 after acquiring an additional 4,842 shares in the last quarter. 1.49% of the stock is owned by institutional investors and hedge funds.

Gerdau Stock Up 2.0%

Shares of NYSE:GGB opened at $5.24 on Wednesday. The business's 50 day simple moving average is $4.87 and its two-hundred day simple moving average is $4.64. The firm has a market cap of $10.28 billion, a P/E ratio of 12.21 and a beta of 1.48. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.30 and a current ratio of 2.87. Gerdau S.A. has a 52-week low of $3.14 and a 52-week high of $5.48.

Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The basic materials company reported $0.15 EPS for the quarter, meeting analysts' consensus estimates of $0.15. Gerdau had a return on equity of 7.97% and a net margin of 3.37%. The firm had revenue of $3.45 billion during the quarter, compared to analysts' expectations of $3.41 billion. As a group, research analysts forecast that Gerdau S.A. will post 0.55 EPS for the current fiscal year.

Gerdau Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, August 21st were given a $0.0448 dividend. This represents a $0.18 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Friday, August 21st. This is an increase from Gerdau's previous quarterly dividend of $0.0361. Gerdau's payout ratio is 65.22%.

Analysts Set New Price Targets

GGB has been the topic of a number of research reports. Bank of America downgraded shares of Gerdau from a "buy" rating to a "neutral" rating and set a $5.10 target price on the stock. in a research report on Thursday, August 20th. Wall Street Zen upgraded shares of Gerdau to a "strong-buy" rating in a report on Saturday. JPMorgan Chase & Co. raised their price target on shares of Gerdau from $6.00 to $6.50 and gave the stock an "overweight" rating in a report on Friday, September 4th. HSBC downgraded shares of Gerdau from a "buy" rating to a "hold" rating in a research note on Thursday, August 20th. Finally, Weiss Ratings upgraded shares of Gerdau from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, October 12th. One equities research 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, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $5.57.

Insider Activity at Gerdau

In other Gerdau news, Chairman Claudio Johannpeter sold 85,607 shares of the company's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $4.94, for a total transaction of $422,898.58. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Rafael Japur sold 10,000 shares of the firm's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $5.10, for a total transaction of $51,000.00. Following the completion of the transaction, the chief financial officer directly owned 86,967 shares in the company, valued at $443,531.70. This trade represents a 10.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 147,407 shares of company stock valued at $737,561. 0.02% of the stock is owned by company insiders.

About Gerdau

Gerdau SA is a Brazil-based steel producer with operations across the Americas. The company manufactures and sells steel products for the construction, industrial, automotive, agricultural and infrastructure markets.

Its product portfolio includes long steel products such as rebar, wire rod, merchant bars and structural shapes, as well as special steel used in automotive and industrial applications. Gerdau also produces flat steel and semi-finished products, including billets and slabs, and operates steel mills, scrap-processing facilities and related distribution networks.

Founded in 1901, Gerdau has grown from a regional Brazilian steelmaker into an international producer serving customers in Brazil, North America and other parts of Latin America.

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