Gerdau (NYSE:GGB) Insider Sells $136,000.00 in Stock

Key Points

• Insider sale: Gerdau insider Chia Yuan Wang sold 34,000 shares on April 8 at $4.00 each, totaling $136,000 and reducing their stake by 14.92% to 193,895 shares (worth $775,580).
• Weak quarter and dividend cut: Gerdau reported Q results of $0.07 EPS vs. $0.11 expected and $3.08B revenue vs. $3.12B expected, and recently paid a reduced quarterly dividend of $0.0194 (annualized $0.08, ~1.8% yield).
• Market and analyst view: Shares trade around $4.22 (52‑week range $2.42–$4.66) with a market cap of $8.42B, and analysts have mostly upgraded ratings to produce an average price target of $4.60 and a consensus of Moderate Buy.

Gerdau S.A. (NYSE:GGB - Get Free Report) insider Chia Yuan Wang sold 34,000 shares of Gerdau stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $4.00, for a total value of $136,000.00. Following the sale, the insider owned 193,895 shares in the company, valued at $775,580. The trade was a 14.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Gerdau Stock Performance

GGB traded up $0.04 during trading on Friday, hitting $4.22. 20,676,130 shares of the company traded hands, compared to its average volume of 20,541,508. Gerdau S.A. has a one year low of $2.42 and a one year high of $4.66. The stock's fifty day moving average is $3.84 and its 200 day moving average is $3.69. The company has a quick ratio of 1.40, a current ratio of 2.89 and a debt-to-equity ratio of 0.26. The firm has a market cap of $8.42 billion, a P/E ratio of 35.13, a price-to-earnings-growth ratio of 1.13 and a beta of 1.44.

Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The basic materials company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.04). Gerdau had a return on equity of 6.20% and a net margin of 1.93%.The company had revenue of $3.08 billion during the quarter, compared to the consensus estimate of $3.12 billion. As a group, equities analysts predict that Gerdau S.A. will post 0.46 EPS for the current fiscal year.

Gerdau Cuts Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Thursday, March 12th were issued a $0.0194 dividend. This represents a $0.08 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Thursday, March 12th. Gerdau's payout ratio is 50.00%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of GGB. BSW Wealth Partners raised its holdings in Gerdau by 4.7% during the 4th quarter. BSW Wealth Partners now owns 53,697 shares of the basic materials company's stock valued at $198,000 after acquiring an additional 2,428 shares during the period. Inspire Investing LLC lifted its position in shares of Gerdau by 11.0% during the fourth quarter. Inspire Investing LLC now owns 26,397 shares of the basic materials company's stock worth $97,000 after acquiring an additional 2,607 shares in the last quarter. Xponance LLC boosted its holdings in shares of Gerdau by 16.1% in the fourth quarter. Xponance LLC now owns 20,570 shares of the basic materials company's stock worth $76,000 after acquiring an additional 2,845 shares during the period. Xponance Inc. boosted its holdings in shares of Gerdau by 22.3% in the third quarter. Xponance Inc. now owns 17,725 shares of the basic materials company's stock worth $55,000 after acquiring an additional 3,230 shares during the period. Finally, Vanguard Personalized Indexing Management LLC grew its position in shares of Gerdau by 7.8% in the third quarter. Vanguard Personalized Indexing Management LLC now owns 45,679 shares of the basic materials company's stock valued at $142,000 after purchasing an additional 3,312 shares in the last quarter. 1.49% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. UBS Group raised their target price on Gerdau from $4.40 to $4.60 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. Itau BBA Securities raised Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 price target on the stock in a research report on Wednesday, April 1st. Scotiabank upgraded Gerdau from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 26th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Gerdau in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $4.60.

Gerdau Company Profile

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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