Insider Selling: Gerdau (NYSE:GGB) EVP Sells $23,500.00 in Stock

Gerdau S.A. (NYSE:GGB) EVP Mauricio Metz sold 5,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $4.70, for a total value of $23,500.00. Following the completion of the transaction, the executive vice president owned 29,536 shares in the company, valued at $138,819.20. This represents a 14.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

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

• On Wednesday, May 13th, Mauricio Metz sold 5,000 shares of Gerdau stock. The shares were sold at an average price of $4.85, for a total value of $24,250.00.
• On Tuesday, May 5th, Mauricio Metz sold 2,000 shares of Gerdau stock. The shares were 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 shares were 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 shares were sold at an average price of $4.24, for a total value of $4,240.00.

Gerdau Stock Down 3.5%

GGB stock opened at $4.49 on Friday. Gerdau S.A. has a twelve month low of $2.61 and a twelve month high of $4.98. 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’s 50 day moving average is $4.25 and its 200-day moving average is $3.99. The firm has a market capitalization of $8.97 billion, a PE ratio of 28.03 and a beta of 1.51.

Gerdau (NYSE:GGB) last posted its earnings results on Tuesday, April 28th. The basic materials company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.05). The company 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%. Sell-side analysts expect that Gerdau S.A. will post 0.51 EPS for the current fiscal year.

Gerdau Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Friday, May 15th will be issued a dividend of $0.0361 per share. This represents a $0.14 dividend on an annualized basis and a yield of 3.2%. This is an increase from Gerdau’s previous quarterly dividend of $0.02. The ex-dividend date is Friday, May 15th. Gerdau’s dividend payout ratio is 75.00%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on GGB shares. JPMorgan Chase & Co. lifted their price target on Gerdau from $5.00 to $5.50 and gave the stock an “overweight” rating in a report on Monday, April 13th. Itau BBA Securities upgraded 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. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a report on Friday, March 27th. Scotiabank upgraded shares of Gerdau from a “hold” rating to a “strong-buy” rating in a research note on Thursday, March 26th. Finally, UBS Group reissued a “buy” rating and set a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $5.12.

Institutional Trading of Gerdau

Hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of 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 period. Wealthstream Advisors Inc. bought a new stake in shares of Gerdau in the third quarter valued at $32,000. EverSource Wealth Advisors LLC raised its stake in shares of Gerdau by 95.3% in the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock valued at $31,000 after buying an additional 5,216 shares during the period. Greenspring Advisors LLC bought a new stake in shares of Gerdau in the fourth quarter valued at $40,000. Finally, Aster Capital Management DIFC Ltd bought a new stake in shares of Gerdau in the third quarter valued at $34,000. 1.49% of the stock is currently owned by institutional investors.

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.