Gerdau (NYSE:GGB) Releases Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Gerdau (NYSE:GGB - Get Free Report) issued its earnings results on Monday. The basic materials company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.05), Zacks reports. Gerdau had a return on equity of 6.83% and a net margin of 2.40%.The company had revenue of $3.22 billion during the quarter, compared to analysts' expectations of $3.29 billion.

Gerdau Stock Up 4.7%

GGB stock opened at $4.53 on Wednesday. Gerdau has a twelve month low of $2.48 and a twelve month high of $4.66. The company has a current ratio of 2.89, a quick ratio of 1.40 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $9.04 billion, a P/E ratio of 28.28 and a beta of 1.44. The firm has a 50 day simple moving average of $3.86 and a 200-day simple moving average of $3.80.

Gerdau Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Thursday, March 12th were paid a dividend of $0.0194 per share. This represents a $0.08 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Thursday, March 12th. Gerdau's dividend payout ratio is 50.00%.

Analysts Set New Price Targets

GGB has been the topic of several recent research reports. Scotiabank raised Gerdau from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 26th. Weiss Ratings reiterated a "hold (c)" rating on shares of Gerdau in a research note on Friday, March 27th. JPMorgan Chase & Co. boosted their target price on shares of Gerdau from $5.00 to $5.50 and gave the stock an "overweight" rating in a research report on Monday, April 13th. UBS Group upped their target price on shares of Gerdau from $4.40 to $4.60 and gave the company a "buy" rating in a research note on Thursday, April 2nd. Finally, Itau BBA Securities raised 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 note on Wednesday, April 1st. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $4.90.

Insider Activity at Gerdau

In other Gerdau news, CEO Cunha Gustavo Werneck Da sold 50,000 shares of the firm's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $4.01, for a total transaction of $200,500.00. Following the completion of the transaction, the chief executive officer directly owned 138,080 shares of the company's stock, valued at $553,700.80. This trade represents a 26.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Marcos Eduardo Fara Wahrhaftig sold 12,419 shares of the business's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $4.06, for a total transaction of $50,421.14. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 208,026 shares of company stock worth $778,058 in the last ninety days. 0.02% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Gerdau

A number of hedge funds have recently bought and sold shares of GGB. AQR Capital Management LLC increased its holdings in Gerdau by 65.9% in the first quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company's stock valued at $1,656,000 after buying an additional 231,588 shares during the last quarter. Millennium Management LLC grew its position in shares of Gerdau by 54.6% in the 1st quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company's stock worth $12,393,000 after acquiring an additional 1,541,311 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Gerdau by 821.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,344,175 shares of the basic materials company's stock valued at $6,657,000 after acquiring an additional 2,089,675 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of Gerdau in the 2nd quarter valued at approximately $51,000. Finally, Creative Planning raised its position in shares of Gerdau by 88.8% during the 2nd quarter. Creative Planning now owns 70,079 shares of the basic materials company's stock valued at $205,000 after acquiring an additional 32,961 shares in the last quarter. 1.49% of the stock is currently owned by institutional investors and hedge funds.

About Gerdau

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.