Gerdau (NYSE:GGB) Chairman Claudio Johannpeter Sells 85,607 Shares of Stock

Key Points

• Insider sale: Gerdau Chairman Claudio Johannpeter sold 85,607 shares at an average price of $4.94, generating proceeds of approximately $422,899.
• Financial performance and dividend: Gerdau met quarterly earnings expectations with EPS of $0.15 and revenue of $3.45 billion. The company raised its quarterly dividend to $0.0448 per share, equivalent to a 3.7% annualized yield.
• Market outlook: GGB shares recently traded at $4.84, while analysts’ average rating was “Hold” with an average price target of $5.57; institutional investors own 1.49% of the stock.

Gerdau S.A. (NYSE:GGB - Get Free Report) Chairman Claudio Johannpeter sold 85,607 shares of the business's stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $4.94, for a total transaction of $422,898.58. The sale was disclosed in a document filed with the SEC, which is available at this link.

Gerdau Stock Up 1.1%

GGB stock traded up $0.06 during trading on Friday, hitting $4.84. 8,744,006 shares of the company's stock were exchanged, compared to its average volume of 17,287,971. The stock has a market capitalization of $9.51 billion, a price-to-earnings ratio of 21.07 and a beta of 1.49. The company has a current ratio of 2.87, a quick ratio of 1.30 and a debt-to-equity ratio of 0.26. Gerdau S.A. has a 52-week low of $3.06 and a 52-week high of $5.18. The business has a 50-day moving average price of $4.83 and a two-hundred day moving average price of $4.45.

Gerdau (NYSE:GGB - Get Free Report) last announced its earnings results on Tuesday, August 4th. The basic materials company reported $0.15 EPS for the quarter, meeting analysts' consensus estimates of $0.15. Gerdau had a net margin of 3.37% and a return on equity of 7.97%. The business had revenue of $3.45 billion for the quarter, compared to analysts' expectations of $3.41 billion. As a group, equities research analysts expect that Gerdau S.A. will post 0.55 EPS for the current year.

Gerdau Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, August 21st were issued a $0.0448 dividend. This represents a $0.18 annualized dividend and a yield of 3.7%. This is a positive change from Gerdau's previous quarterly dividend of $0.0361. The ex-dividend date of this dividend was Friday, August 21st. Gerdau's dividend payout ratio is currently 65.22%.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Itau BBA Securities downgraded Gerdau from an "outperform" rating to a "market perform" rating in a report on Monday, August 10th. UBS Group reaffirmed a "buy" rating and issued a $6.10 target price (up from $5.70) on shares of Gerdau in a research report on Thursday, August 27th. HSBC cut shares of Gerdau from a "buy" rating to a "hold" rating in a research report on Thursday, August 20th. JPMorgan Chase & Co. lifted their price target on shares of Gerdau from $6.00 to $6.50 and gave the stock an "overweight" rating in a research note on Friday, September 4th. Finally, Bank of America lowered Gerdau from a "buy" rating to a "neutral" rating and set a $5.10 target price for the company. in a research report on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $5.57.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. QRG Capital Management Inc. lifted its position in shares of Gerdau by 60.9% in the second quarter. QRG Capital Management Inc. now owns 48,434 shares of the basic materials company's stock worth $196,000 after purchasing an additional 18,334 shares in the last quarter. Sequoia Financial Advisors LLC raised its holdings in Gerdau by 8.3% during the second quarter. Sequoia Financial Advisors LLC now owns 82,870 shares of the basic materials company's stock valued at $335,000 after buying an additional 6,376 shares in the last quarter. Tidal Investments LLC lifted its holdings in Gerdau by 1.9% in the 2nd quarter. Tidal Investments LLC now owns 176,888 shares of the basic materials company's stock worth $715,000 after purchasing an additional 3,292 shares during the last quarter. Engineers Gate Manager LP boosted its holdings in Gerdau by 124.7% during the second quarter. Engineers Gate Manager LP now owns 7,010,275 shares of the basic materials company's stock valued at $28,322,000 after acquiring an additional 3,890,093 shares during the period. Finally, Integrated Wealth Concepts LLC grew its stake in shares of Gerdau by 12.7% in the second quarter. Integrated Wealth Concepts LLC now owns 136,038 shares of the basic materials company's stock worth $550,000 after acquiring an additional 15,356 shares during the last quarter. Institutional investors own 1.49% of the company's stock.

About Gerdau

Gerdau SA is a Brazil-based steel producer whose American depositary shares trade on the New York Stock Exchange under the symbol GGB. The company manufactures and sells steel products for construction, industrial, agricultural, automotive and other end markets.

Its product portfolio includes long steel products such as rebar, wire rod, structural sections and merchant bars, as well as specialty steel and selected flat steel products. Gerdau also operates steel mills and scrap-processing facilities, using recycled ferrous scrap as an important raw material, and has activities connected with iron ore and other steelmaking inputs.

Founded in 1901, Gerdau has expanded from its Brazilian origins into one of the major steel producers in the Americas.

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