Insider Selling: Gerdau (NYSE:GGB) EVP Sells 5,000 Shares of Stock

Key Points

• Gerdau EVP Mauricio Metz sold 5,000 shares on May 13 at an average price of $4.85, totaling $24,250. After the sale, he still held 34,536 shares, a 12.65% reduction in his ownership.
• The company recently reported weaker-than-expected earnings, posting $0.10 EPS versus the $0.15 consensus estimate and revenue of $3.22 billion versus expectations of $3.36 billion.
• Gerdau raised its quarterly dividend to $0.0361 per share from $0.02, implying a 3.1% annualized yield. Analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average price target of $5.12.

Gerdau S.A. (NYSE:GGB - Get Free Report) EVP Mauricio Metz sold 5,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $4.85, for a total value of $24,250.00. Following the sale, the executive vice president directly owned 34,536 shares of the company's stock, valued at $167,499.60. This represents a 12.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Mauricio Metz also recently made the following trade(s):

• On Tuesday, May 5th, Mauricio Metz sold 2,000 shares of Gerdau stock. The stock was sold at an average price of $4.69, for a total value of $9,380.00.
• On Tuesday, April 28th, Mauricio Metz sold 1,000 shares of Gerdau stock. The stock was sold at an average price of $4.53, for a total value of $4,530.00.
• On Friday, April 10th, Mauricio Metz sold 1,000 shares of Gerdau stock. The stock was sold at an average price of $4.24, for a total value of $4,240.00.

Gerdau Stock Down 2.2%

GGB traded down $0.11 during midday trading on Friday, reaching $4.61. 14,508,322 shares of the company were exchanged, compared to its average volume of 19,824,410. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.29 and a current ratio of 2.76. The company's fifty day moving average price is $3.99 and its 200 day moving average price is $3.90. The company has a market cap of $9.20 billion, a price-to-earnings ratio of 28.78 and a beta of 1.51. Gerdau S.A. has a one year low of $2.61 and a one year high of $4.98.

Gerdau (NYSE:GGB - Get Free Report) last released its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.05). The business had revenue of $3.22 billion during the quarter, compared to the consensus estimate of $3.36 billion. Gerdau had a net margin of 2.40% and a return on equity of 6.76%. As a group, analysts expect that Gerdau S.A. will post 0.51 EPS for the current year.

Gerdau Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Friday, May 15th will be issued a $0.0361 dividend. This is a boost from Gerdau's previous quarterly dividend of $0.02. This represents a $0.14 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, May 15th. Gerdau's dividend payout ratio is currently 75.00%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on GGB. UBS Group reaffirmed a "buy" rating and issued a $5.25 target price (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. Itau BBA Securities raised Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 target price for the company in a report on Wednesday, April 1st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Gerdau in a report on Friday, March 27th. JPMorgan Chase & Co. upped their price objective on Gerdau from $5.00 to $5.50 and gave the company an "overweight" rating in a research note on Monday, April 13th. Finally, Scotiabank upgraded Gerdau from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $5.12.

Hedge Funds Weigh In On Gerdau

Institutional investors have recently bought and sold shares of the company. Capital International Investors lifted its stake in Gerdau by 1.9% in the third quarter. Capital International Investors now owns 31,046,243 shares of the basic materials company's stock valued at $96,243,000 after purchasing an additional 581,958 shares during the last quarter. Kapitalo Investimentos Ltda purchased a new position in Gerdau in the third quarter valued at approximately $5,958,000. GSA Capital Partners LLP purchased a new position in Gerdau in the third quarter valued at approximately $981,000. SPX Gestao de Recursos Ltda lifted its position in shares of Gerdau by 56.5% during the third quarter. SPX Gestao de Recursos Ltda now owns 4,491,042 shares of the basic materials company's stock worth $13,922,000 after acquiring an additional 1,621,938 shares in the last quarter. Finally, Causeway Capital Management LLC lifted its position in shares of Gerdau by 169.2% during the third quarter. Causeway Capital Management LLC now owns 7,189,270 shares of the basic materials company's stock worth $22,287,000 after acquiring an additional 4,519,092 shares in the last quarter. Hedge funds and other institutional investors own 1.49% of the company's stock.

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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