Gerdau (NYSE:GGB) EVP Mauricio Metz Sells 5,000 Shares

Gerdau S.A. (NYSE:GGB) EVP Mauricio Metz sold 5,000 shares of the stock in a transaction 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 owned 34,536 shares in the company, valued at approximately $167,499.60. This represents a 12.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

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 Performance

Shares of NYSE:GGB traded down $0.11 during trading on Friday, hitting $4.61. 14,508,322 shares of the company were exchanged, compared to its average volume of 19,824,410. The company has a market cap of $9.20 billion, a PE ratio of 28.78 and a beta of 1.51. The stock has a 50 day moving average of $3.99 and a 200 day moving average of $3.90. Gerdau S.A. has a 52-week low of $2.61 and a 52-week high of $4.98. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29.

Gerdau (NYSE:GGB) last posted 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 company had revenue of $3.22 billion for the quarter, compared to analysts’ expectations of $3.36 billion. Gerdau had a return on equity of 6.76% and a net margin of 2.40%. As a group, equities research analysts predict that Gerdau S.A. will post 0.51 EPS for the current year.

Gerdau Increases Dividend

The company also recently declared 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. The ex-dividend date of this dividend is Friday, May 15th. This is an increase from Gerdau’s previous quarterly dividend of $0.02. This represents a $0.14 annualized dividend and a dividend yield of 3.1%. Gerdau’s payout ratio is currently 75.00%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on GGB. UBS Group reaffirmed a “buy” rating and issued a $5.25 price target (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. Scotiabank raised shares of Gerdau from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 26th. 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 report on Wednesday, April 1st. JPMorgan Chase & Co. upped their price target on shares of Gerdau from $5.00 to $5.50 and gave the stock an “overweight” rating in a report on Monday, April 13th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Gerdau currently has an average rating of “Moderate Buy” and a consensus price target of $5.12.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of GGB. AQR Capital Management LLC increased its holdings in shares of Gerdau by 65.9% in the first quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company’s stock worth $1,656,000 after buying an additional 231,588 shares during the period. Millennium Management LLC grew its stake in shares of Gerdau by 54.6% in the first quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock worth $12,393,000 after purchasing an additional 1,541,311 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Gerdau by 821.1% during 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 in the last quarter. Sivia Capital Partners LLC bought a new stake in Gerdau during the 2nd quarter valued at approximately $51,000. Finally, Creative Planning boosted its position in 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. Hedge funds and other institutional investors own 1.49% of the company’s stock.

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.