Rafael Dorneles Japur Sells 5,000 Shares of Gerdau (NYSE:GGB) Stock

Key Points

• Gerdau CFO Rafael Dorneles Japur sold 5,000 shares on May 22 at an average price of $4.75, trimming his ownership by about 4.9% to 96,967 shares.
• The stock was down 1.1% in trading to $4.70, while the company posted mixed recent results, missing quarterly EPS and revenue estimates in its latest earnings report.
• Gerdau raised its quarterly dividend to $0.0361 per share, and analysts currently rate the stock a “Moderate Buy” with a consensus price target of $5.12.

Gerdau S.A. (NYSE:GGB - Get Free Report) CFO Rafael Dorneles Japur sold 5,000 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $4.75, for a total value of $23,750.00. Following the completion of the sale, the chief financial officer owned 96,967 shares in the company, valued at $460,593.25. The trade was a 4.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Gerdau Trading Down 1.1%

GGB stock traded down $0.05 during midday trading on Tuesday, hitting $4.70. The stock had a trading volume of 15,594,992 shares, compared to its average volume of 19,613,553. The company has a current ratio of 2.76, a quick ratio of 1.29 and a debt-to-equity ratio of 0.26. The firm has a market cap of $9.40 billion, a P/E ratio of 29.38 and a beta of 1.51. The business has a fifty day moving average price of $4.14 and a two-hundred day moving average price of $3.96. Gerdau S.A. has a 1-year low of $2.61 and a 1-year high of $4.98.

Gerdau (NYSE:GGB - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The basic materials company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.05). Gerdau had a return on equity of 6.76% and a net margin of 2.40%.The company had revenue of $3.22 billion for the quarter, compared to analyst estimates of $3.36 billion. On average, sell-side analysts predict that Gerdau S.A. will post 0.51 earnings per share for the current fiscal year.

Gerdau Increases Dividend

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

Institutional Investors Weigh In On Gerdau

Large investors have recently added to or reduced their stakes in the company. BSW Wealth Partners boosted its position in Gerdau by 4.7% during the fourth quarter. BSW Wealth Partners now owns 53,697 shares of the basic materials company's stock valued at $198,000 after buying an additional 2,428 shares during the period. Inspire Investing LLC increased its stake in Gerdau by 11.0% in the 4th quarter. Inspire Investing LLC now owns 26,397 shares of the basic materials company's stock worth $97,000 after purchasing an additional 2,607 shares during the period. Xponance LLC lifted its position in Gerdau by 16.1% in the fourth quarter. Xponance LLC now owns 20,570 shares of the basic materials company's stock valued at $76,000 after purchasing an additional 2,845 shares during the last quarter. QRG Capital Management Inc. boosted its stake in shares of Gerdau by 11.9% during the first quarter. QRG Capital Management Inc. now owns 30,100 shares of the basic materials company's stock valued at $109,000 after purchasing an additional 3,196 shares during the period. Finally, Xponance Inc. grew 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 purchasing an additional 3,230 shares during the last quarter. Hedge funds and other institutional investors own 1.49% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Itau BBA Securities upgraded Gerdau from a "market perform" rating to an "outperform" rating and set a $4.60 target price on the stock in a research note on Wednesday, April 1st. JPMorgan Chase & Co. lifted 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. UBS Group reissued 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 note on Thursday, March 26th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Gerdau in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus 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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