Bank of America lowered shares of Gerdau (NYSE:GGB – Free Report) from a buy rating to a neutral rating in a research note issued to investors on Thursday, Marketbeat Ratings reports. The brokerage currently has $5.10 price target on the basic materials company’s stock.
Other research analysts also recently issued reports about the company. Weiss Ratings upgraded Gerdau from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, August 5th. Itau BBA Securities cut Gerdau from an “outperform” rating to a “market perform” rating in a research note on Monday, August 10th. JPMorgan Chase & Co. raised their price target on Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a report on Thursday, June 25th. Finally, UBS Group restated a “buy” rating and set a $5.25 price target (up from $4.60) on shares of Gerdau in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $5.24.
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Gerdau Price Performance
Gerdau (NYSE:GGB – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.15. Gerdau had a return on equity of 7.97% and a net margin of 3.37%.The business had revenue of $3.45 billion for the quarter, compared to the consensus estimate of $3.41 billion. As a group, analysts predict that Gerdau will post 0.53 earnings per share for the current fiscal year.
Gerdau Increases Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, August 21st will be paid a dividend of $0.0448 per share. The ex-dividend date is Friday, August 21st. This is an increase from Gerdau’s previous quarterly dividend of $0.04. This represents a $0.18 annualized dividend and a dividend yield of 4.2%. Gerdau’s payout ratio is presently 52.17%.
Insider Activity
In other news, CEO Cunha Gustavo Werneck Da bought 165,224 shares of Gerdau stock in a transaction that occurred on Friday, June 12th. The stock was bought at an average price of $4.73 per share, for a total transaction of $781,509.52. Following the purchase, the chief executive officer directly owned 165,224 shares of the company’s stock, valued at approximately $781,509.52. The trade was a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Chia Yuan Wang sold 30,935 shares of Gerdau stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $4.49, for a total value of $138,898.15. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 63,322 shares of company stock valued at $300,426. 0.02% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Institutional investors have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Gerdau by 68.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,634 shares of the basic materials company’s stock valued at $28,000 after buying an additional 3,931 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Gerdau by 95.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock worth $31,000 after buying an additional 5,216 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Gerdau during the 3rd quarter valued at approximately $34,000. Coldstream Capital Management Inc. acquired a new stake in Gerdau during the 3rd quarter valued at approximately $37,000. Finally, Greenspring Advisors LLC purchased a new stake in shares of Gerdau in the 4th quarter valued at $40,000. 1.49% of the stock is currently owned by hedge funds and other institutional investors.
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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