Renaissance Technologies LLC Increases Stock Holdings in Gerdau S.A. $GGB

Renaissance Technologies LLC grew its stake in Gerdau S.A. (NYSE:GGB) by 76.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,936,524 shares of the basic materials company’s stock after purchasing an additional 4,725,200 shares during the period. Renaissance Technologies LLC owned approximately 0.55% of Gerdau worth $39,481,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of GGB. Bank of America Corp DE lifted its holdings in shares of Gerdau by 162.6% during the second quarter. Bank of America Corp DE now owns 12,984,389 shares of the basic materials company’s stock worth $37,914,000 after purchasing an additional 8,039,814 shares during the period. Donald Smith & CO. Inc. increased its stake in Gerdau by 49.2% in the 4th quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company’s stock valued at $89,341,000 after buying an additional 7,982,296 shares during the period. Kapitalo Investimentos Ltda acquired a new position in Gerdau in the 1st quarter valued at $9,618,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised 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 worth $6,657,000 after buying an additional 2,089,675 shares during the last quarter. Finally, Jump Financial LLC acquired a new stake in shares of Gerdau in the 4th quarter worth $7,400,000. Hedge funds and other institutional investors own 1.49% of the company’s stock.

Insider Transactions at Gerdau

In related news, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $4.60, for a total value of $36,800.00. Following the completion of the transaction, the insider directly owned 8 shares of the company’s stock, valued at $36.80. This trade represents a 99.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Mauricio Metz sold 7,000 shares of Gerdau stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total value of $33,950.00. Following the transaction, the executive vice president directly owned 22,536 shares of the company’s stock, valued at approximately $109,299.60. This represents a 23.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 555,789 shares of company stock worth $2,679,327. 0.02% of the stock is currently owned by insiders.

Gerdau Stock Performance

NYSE:GGB opened at $4.83 on Tuesday. The firm’s fifty day simple moving average is $4.51 and its 200-day simple moving average is $4.24. The company has a quick ratio of 1.29, a current ratio of 2.76 and a debt-to-equity ratio of 0.26. The stock has a market cap of $9.65 billion, a PE ratio of 30.16 and a beta of 1.50. Gerdau S.A. has a fifty-two week low of $2.85 and a fifty-two week high of $4.98.

Gerdau (NYSE:GGB) last issued its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share 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. Analysts expect that Gerdau S.A. will post 0.53 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in 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. JPMorgan Chase & Co. increased their price target on shares of Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a report on Thursday, June 25th. Itau BBA Securities raised Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 price objective on the stock in a report on Wednesday, April 1st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research report on Wednesday, June 24th. One equities research 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 company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $5.28.

Gerdau 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.