Gerdau (NYSE:GGB) Posts Earnings Results, Hits Estimates

Gerdau (NYSE:GGB) released its quarterly earnings results on Tuesday. The basic materials company reported $0.15 earnings per share for the quarter, meeting the consensus estimate of $0.15, Zacks reports. The company had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.41 billion. Gerdau had a return on equity of 6.76% and a net margin of 2.40%.

Gerdau Stock Performance

Gerdau stock opened at $5.09 on Wednesday. Gerdau has a twelve month low of $2.85 and a twelve month high of $5.17. 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 company has a market capitalization of $10.19 billion, a P/E ratio of 31.85 and a beta of 1.48. The stock’s 50 day moving average is $4.54 and its 200 day moving average is $4.28.

Insider Buying and Selling

In other news, insider Cesar Obino Da Rosa Peres sold 8,000 shares of the stock in a transaction 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 sale, the insider directly owned 8 shares of the company’s stock, valued at approximately $36.80. This represents a 99.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Mauricio Metz sold 7,000 shares of Gerdau stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total value of $33,950.00. Following the completion of 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 493,789 shares of company stock worth $2,389,147 over the last three months. 0.02% of the stock is owned by corporate insiders.

Institutional Trading of Gerdau

A number of institutional investors and hedge funds have recently bought and sold shares of GGB. Bank of America Corp DE lifted its stake in shares of Gerdau by 162.6% in 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 buying an additional 8,039,814 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Gerdau by 821.1% during the first 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. Jump Financial LLC purchased a new position in Gerdau in the 4th quarter worth approximately $7,400,000. Cubist Systematic Strategies LLC purchased a new position in Gerdau in the 2nd quarter worth approximately $5,690,000. Finally, Mackenzie Financial Corp lifted its position in Gerdau by 80.6% in the 4th quarter. Mackenzie Financial Corp now owns 4,117,253 shares of the basic materials company’s stock valued at $15,286,000 after acquiring an additional 1,837,160 shares in the last quarter. 1.49% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have commented on GGB. Weiss Ratings reissued a “hold (c)” rating on shares of Gerdau in a research report on Wednesday, June 24th. UBS Group reaffirmed a “buy” rating and issued a $5.25 target price (up from $4.60) on shares of Gerdau in a research report on Wednesday, April 29th. Finally, 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 research note on Thursday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $5.28.

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.