Gerdau S.A. (NYSE:GGB) to Issue Dividend Increase – $0.04 Per Share

Gerdau S.A. (NYSE:GGB) declared a quarterly dividend on Wednesday, August 5th. Stockholders of record on Friday, August 21st will be paid a dividend of 0.0448 per share by the basic materials company on Friday, September 18th. This represents a c) annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, August 21st. This is a 24.1% increase from Gerdau’s previous quarterly dividend of $0.04.

Gerdau has increased its dividend payment by an average of 0.2%per year over the last three years. Gerdau has a dividend payout ratio of 28.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect Gerdau to earn $0.59 per share next year, which means the company should continue to be able to cover its $0.11 annual dividend with an expected future payout ratio of 18.6%.

Gerdau Stock Performance

Shares of GGB stock traded down $0.03 during trading hours on Thursday, reaching $5.12. The stock had a trading volume of 6,547,547 shares, compared to its average volume of 18,751,209. The firm has a market capitalization of $10.23 billion, a PE ratio of 22.24 and a beta of 1.48. The firm has a 50-day simple moving average of $4.55 and a 200-day simple moving average of $4.28. Gerdau has a twelve month low of $2.85 and a twelve month high of $5.18. 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, August 4th. The basic materials company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15. The firm had revenue of $3.45 billion during the quarter, compared to analysts’ expectations of $3.41 billion. Gerdau had a net margin of 3.37% and a return on equity of 8.11%. As a group, equities analysts forecast that Gerdau will post 0.53 earnings per share for the current year.

Insider Transactions at Gerdau

In related news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the firm’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $4.87, for a total transaction of $2,107,998.98. Following the completion of the transaction, the chief executive officer owned 432,854 shares of the company’s stock, valued at $2,107,998.98. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 transaction, the executive vice president directly owned 22,536 shares in the company, valued at approximately $109,299.60. The trade was a 23.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 493,789 shares of company stock valued at $2,389,147 in the last quarter. Company insiders own 0.02% of the company’s stock.

Hedge Funds Weigh In On Gerdau

Several hedge funds have recently made changes to their positions in GGB. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Gerdau by 68.9% during 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 purchasing an additional 3,931 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Gerdau by 95.3% during the second quarter. EverSource Wealth Advisors LLC now owns 10,687 shares of the basic materials company’s stock valued at $31,000 after acquiring an additional 5,216 shares during the period. Greenspring Advisors LLC purchased a new stake in shares of Gerdau in the fourth quarter valued at $40,000. Caitong International Asset Management Co. Ltd acquired a new stake in Gerdau during the third quarter valued at $34,000. Finally, Coldstream Capital Management Inc. bought a new stake in shares of Gerdau in the 3rd quarter valued at approximately $37,000. Institutional investors and hedge funds own 1.49% of the company’s stock.

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.