Gerdau (NYSE:GGB) Insider Sells $190,000.00 in Stock

Key Points

• Insider selling: Gerdau insider Chia Yuan Wang sold 40,000 shares on May 5 at $4.75 and has sold about 195,700 shares across April–May for roughly $866,433, reducing their stake by 55.41% to 32,195 shares.
• Dividend increase: The company raised its quarterly dividend to $0.0361 per share (annualized $0.14) for a yield of 3.0%, up from $0.02, with an ex-dividend/record date of May 15 and payment on June 16.
• Mixed results but upbeat analyst view: Gerdau missed Q1 estimates (EPS $0.10 vs $0.15 and revenue $3.22B vs $3.36B) yet the stock (~$4.76, $9.5B market cap) has multiple upgrades and a consensus "Moderate Buy" with an average target of $5.12.

Gerdau S.A. (NYSE:GGB - Get Free Report) insider Chia Yuan Wang sold 40,000 shares of the stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $4.75, for a total transaction of $190,000.00. Following the sale, the insider directly owned 32,195 shares in the company, valued at $152,926.25. This trade represents a 55.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website.

Chia Yuan Wang also recently made the following trade(s):

• On Thursday, April 30th, Chia Yuan Wang sold 20,000 shares of Gerdau stock. The shares were sold at an average price of $4.54, for a total transaction of $90,800.00.
• On Tuesday, April 28th, Chia Yuan Wang sold 76,700 shares of Gerdau stock. The shares were sold at an average price of $4.49, for a total transaction of $344,383.00.
• On Friday, April 10th, Chia Yuan Wang sold 25,000 shares of Gerdau stock. The shares were sold at an average price of $4.21, for a total transaction of $105,250.00.
• On Wednesday, April 8th, Chia Yuan Wang sold 34,000 shares of Gerdau stock. The stock was sold at an average price of $4.00, for a total transaction of $136,000.00.

Gerdau Stock Performance

Shares of GGB traded down $0.18 on Thursday, reaching $4.76. The company's stock had a trading volume of 15,516,635 shares, compared to its average volume of 20,038,121. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29. The stock has a market capitalization of $9.50 billion, a P/E ratio of 29.72 and a beta of 1.51. The stock's 50 day simple moving average is $3.90 and its two-hundred day simple moving average is $3.84. Gerdau S.A. has a 12-month low of $2.55 and a 12-month high of $4.98.

Gerdau (NYSE:GGB - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.15 by ($0.05). Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The business had revenue of $3.22 billion during the quarter, compared to analysts' expectations of $3.36 billion. Research analysts forecast that Gerdau S.A. will post 0.51 earnings per share for the current fiscal year.

Gerdau Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.0361 per share. This represents a $0.14 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Friday, May 15th. This is a positive change from Gerdau's previous quarterly dividend of $0.02. Gerdau's dividend payout ratio (DPR) is 37.50%.

Institutional Trading of Gerdau

Hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Gerdau by 68.9% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company's stock worth $28,000 after buying an additional 3,931 shares during the period. Wealthstream Advisors Inc. purchased a new position in Gerdau during the 3rd quarter worth approximately $32,000. EverSource Wealth Advisors LLC raised its position in Gerdau by 95.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company's stock worth $31,000 after buying an additional 5,216 shares during the last quarter. Greenspring Advisors LLC purchased a new position in Gerdau during the 4th quarter worth approximately $40,000. Finally, Aster Capital Management DIFC Ltd purchased a new position in Gerdau during the 3rd quarter worth approximately $34,000. 1.49% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

GGB has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. raised their target price on shares of Gerdau from $5.00 to $5.50 and gave the stock an "overweight" rating in a research note on Monday, April 13th. Weiss Ratings restated a "hold (c)" rating on shares of Gerdau in a research report on Friday, March 27th. UBS Group restated a "buy" rating and issued a $5.25 price target (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. Scotiabank upgraded shares of Gerdau from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 26th. Finally, Itau BBA Securities upgraded shares of 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. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $5.12.

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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