Kawa Capital Management Inc Makes New $6.01 Million Investment in Gerdau S.A. $GGB

Key Points

• Kawa Capital Management Inc has invested $6.01 million in Gerdau S.A., acquiring 2,094,404 shares, which now represents 13.4% of their total holdings.
• Gerdau's recent earnings were slightly below expectations, with $0.08 EPS compared to the anticipated $0.09, and revenues of $3.13 billion, missing estimates of $3.22 billion.
• The company has increased its quarterly dividend to $0.0216 per share, reflecting a 2.8% yield, up from the previous dividend of $0.02.

Kawa Capital Management Inc purchased a new position in Gerdau S.A. (NYSE:GGB - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 2,094,404 shares of the basic materials company's stock, valued at approximately $6,011,000. Gerdau comprises 13.4% of Kawa Capital Management Inc's holdings, making the stock its 5th biggest holding. Kawa Capital Management Inc owned 0.10% of Gerdau as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in GGB. Raymond James Financial Inc. purchased a new position in Gerdau during the 4th quarter worth approximately $65,000. Northern Trust Corp grew its position in Gerdau by 34.8% during the 4th quarter. Northern Trust Corp now owns 918,238 shares of the basic materials company's stock worth $2,645,000 after purchasing an additional 236,951 shares in the last quarter. BNP Paribas Financial Markets grew its position in Gerdau by 30.2% during the 4th quarter. BNP Paribas Financial Markets now owns 553,287 shares of the basic materials company's stock worth $1,593,000 after purchasing an additional 128,176 shares in the last quarter. Bank of America Corp DE grew its position in Gerdau by 130.6% during the 4th quarter. Bank of America Corp DE now owns 10,095,722 shares of the basic materials company's stock worth $29,076,000 after purchasing an additional 5,718,323 shares in the last quarter. Finally, D. E. Shaw & Co. Inc. grew its position in Gerdau by 62.5% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 1,806,871 shares of the basic materials company's stock worth $5,204,000 after purchasing an additional 695,005 shares in the last quarter. Institutional investors and hedge funds own 1.49% of the company's stock.

Gerdau Trading Up 0.8%

Shares of NYSE:GGB opened at $3.13 on Friday. The firm has a fifty day moving average of $3.01 and a two-hundred day moving average of $2.87. The firm has a market capitalization of $6.24 billion, a P/E ratio of 10.78, a price-to-earnings-growth ratio of 0.76 and a beta of 1.38. Gerdau S.A. has a 12-month low of $2.27 and a 12-month high of $3.62. The company has a quick ratio of 1.50, a current ratio of 2.89 and a debt-to-equity ratio of 0.30.

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

Gerdau Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, August 25th. Investors of record on Wednesday, August 13th were paid a $0.0216 dividend. This represents a $0.09 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Wednesday, August 13th. This is a boost from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio (DPR) is presently 27.59%.

Analyst Ratings Changes

Separately, UBS Group upgraded shares of Gerdau from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $2.90 to $3.80 in a research report on Monday, June 9th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $3.80.

Gerdau 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.