Mackenzie Financial Corp Acquires 1,998,206 Shares of Gerdau S.A. (NYSE:GGB)

Key Points

• Mackenzie Financial Corp increased its stake in Gerdau S.A. by 467.5%, now owning approximately 2.4 million shares valued at $6.89 million as of the latest SEC filing.
• Gerdau recently raised its dividend to $0.0188 per share, representing a significant yield of 295.0%, up from a previous dividend of $0.00.
• Wall Street analysts have shown optimism, with UBS upgrading Gerdau from a "neutral" to a "buy" rating and increasing their price target from $2.90 to $3.80.

Mackenzie Financial Corp grew its stake in shares of Gerdau S.A. (NYSE:GGB - Free Report) by 467.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,425,593 shares of the basic materials company's stock after buying an additional 1,998,206 shares during the period. Mackenzie Financial Corp owned 0.12% of Gerdau worth $6,889,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of GGB. Wolverine Trading LLC acquired a new stake in Gerdau in the fourth quarter valued at approximately $37,000. Xponance Inc. acquired a new position in Gerdau during the first quarter worth $40,000. Sigma Planning Corp acquired a new position in Gerdau in the first quarter valued at approximately $46,000. Raymond James Financial Inc. acquired a new position in shares of Gerdau in the fourth quarter worth $65,000. Finally, First Trust Advisors LP purchased a new stake in Gerdau in the 4th quarter valued at $79,000. Hedge funds and other institutional investors own 1.49% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on GGB shares. UBS Group upgraded shares of Gerdau from a "neutral" rating to a "buy" rating and lifted their price target for the company from $2.90 to $3.80 in a research report on Monday, June 9th. Bank of America reiterated a "neutral" rating on shares of Gerdau in a research report on Monday, April 7th.

Gerdau Stock Performance

Gerdau stock traded up $0.00 during mid-day trading on Tuesday, reaching $2.92. The company had a trading volume of 6,322,371 shares, compared to its average volume of 11,845,180. The company has a quick ratio of 1.50, a current ratio of 2.89 and a debt-to-equity ratio of 0.30. The firm has a market cap of $6.07 billion, a price-to-earnings ratio of 10.09, a PEG ratio of 1.23 and a beta of 1.36. Gerdau S.A. has a 52 week low of $2.27 and a 52 week high of $3.62. The company has a 50 day moving average of $2.95 and a 200-day moving average of $2.85.

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

Gerdau Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 25th. Stockholders of record on Wednesday, August 13th will be paid a $0.0216 dividend. This represents a $0.09 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Wednesday, August 13th. This is a positive change from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio is 27.59%.

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.