Quantbot Technologies LP Takes $1.28 Million Position in Gerdau S.A. $GGB

Key Points

• Quantbot Technologies LP acquired approximately $1.28 million worth of shares in Gerdau S.A. during the first quarter, reflecting growing interest among institutional investors in the company.
• UBS Group upgraded Gerdau from a "neutral" rating to a "buy" rating, raising the price target for the stock from $2.90 to $3.80, indicating positive sentiment among analysts.
• Gerdau recently announced an increase in its quarterly dividend to $0.0216 per share, representing an annual yield of 2.9%, which highlights the company's commitment to returning value to shareholders.

Quantbot Technologies LP bought a new stake in Gerdau S.A. (NYSE:GGB - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 448,957 shares of the basic materials company's stock, valued at approximately $1,275,000.

Other hedge funds have also bought and sold shares of the company. Wolverine Trading LLC bought a new stake in Gerdau during the fourth quarter worth $37,000. Xponance Inc. bought a new stake in Gerdau during the first quarter worth $40,000. Sigma Planning Corp bought a new stake in Gerdau during the first quarter worth $46,000. Raymond James Financial Inc. bought a new stake in Gerdau during the fourth quarter worth $65,000. Finally, R Squared Ltd lifted its holdings in Gerdau by 84.0% during the first quarter. R Squared Ltd now owns 22,930 shares of the basic materials company's stock worth $65,000 after acquiring an additional 10,470 shares during the period. 1.49% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Separately, UBS Group upgraded Gerdau from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $2.90 to $3.80 in a report on Monday, June 9th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Gerdau presently has an average rating of "Moderate Buy" and a consensus target price of $3.80.

Gerdau Stock Performance

Shares of GGB opened at $2.9750 on Friday. The firm has a market cap of $5.94 billion, a PE ratio of 10.26, a PEG ratio of 1.25 and a beta of 1.36. The stock's fifty day moving average price is $2.97 and its two-hundred day moving average price is $2.85. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.89 and a quick ratio of 1.50. Gerdau S.A. has a 1 year low of $2.27 and a 1 year high of $3.62.

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 the consensus estimate of $0.09 by ($0.01). The firm had revenue of $3.13 billion during the quarter, compared to the consensus estimate of $3.22 billion. Gerdau had a net margin of 4.81% and a return on equity of 6.51%. On average, equities research analysts forecast that Gerdau S.A. will post 0.46 EPS for the current year.

Gerdau Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 25th. Shareholders of record on Wednesday, August 13th will be paid a $0.0216 dividend. The ex-dividend date is Wednesday, August 13th. This is a boost from Gerdau's previous quarterly dividend of $0.02. This represents a $0.09 annualized dividend and a dividend yield of 2.9%. Gerdau's dividend payout ratio is presently 27.59%.

About Gerdau

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.

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