Sei Investments Co. Buys 796,724 Shares of Gerdau S.A. $GGB

Sei Investments Co. boosted its stake in shares of Gerdau S.A. (NYSE:GGB) by 282.3% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,078,917 shares of the basic materials company’s stock after acquiring an additional 796,724 shares during the period. Sei Investments Co.’s holdings in Gerdau were worth $3,895,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently bought and sold shares of the stock. Bank of America Corp DE boosted its holdings in shares of Gerdau by 162.6% during the 2nd quarter. Bank of America Corp DE now owns 12,984,389 shares of the basic materials company’s stock valued at $37,914,000 after purchasing an additional 8,039,814 shares during the last quarter. Donald Smith & CO. Inc. grew its position in shares of Gerdau by 49.2% during the fourth quarter. Donald Smith & CO. Inc. now owns 24,211,588 shares of the basic materials company’s stock valued at $89,341,000 after purchasing an additional 7,982,296 shares in the last quarter. Kapitalo Investimentos Ltda bought a new stake in shares of Gerdau in the first quarter worth about $9,618,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Gerdau by 821.1% in 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 worth $6,657,000 after buying an additional 2,089,675 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of Gerdau in the fourth quarter worth about $7,400,000. 1.49% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CEO Cunha Gustavo Werneck Da purchased 165,224 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were bought at an average cost of $4.73 per share, for a total transaction of $781,509.52. Following the acquisition, the chief executive officer owned 165,224 shares of the company’s stock, valued at approximately $781,509.52. This trade represents a ∞ increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Mauricio Metz sold 7,000 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $4.85, for a total transaction of $33,950.00. Following the completion of the sale, the executive vice president directly owned 22,536 shares in the company, valued at $109,299.60. This trade represents a 23.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 60,935 shares of company stock valued at $281,148. 0.02% of the stock is currently owned by company insiders.

Gerdau Stock Performance

NYSE GGB opened at $5.05 on Friday. The business’s 50 day moving average price is $4.56 and its 200-day moving average price is $4.29. Gerdau S.A. has a fifty-two week low of $2.85 and a fifty-two week high of $5.18. The company has a market cap of $10.10 billion, a P/E ratio of 21.96 and a beta of 1.48. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.29 and a current ratio of 2.87.

Gerdau (NYSE:GGB) last posted its quarterly earnings data on Tuesday, August 4th. The basic materials company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15. Gerdau had a net margin of 3.37% and a return on equity of 7.97%. The company had revenue of $3.45 billion during the quarter, compared to analyst estimates of $3.41 billion. Sell-side analysts predict that Gerdau S.A. will post 0.53 earnings per share for the current year.

Gerdau Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, August 21st will be paid a dividend of $0.0448 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $0.18 dividend on an annualized basis and a dividend yield of 3.6%. This is a boost from Gerdau’s previous quarterly dividend of $0.04. Gerdau’s dividend payout ratio is presently 52.17%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on GGB shares. Weiss Ratings upgraded Gerdau from a “hold (c)” rating to a “hold (c+)” rating in a report on Wednesday. UBS Group reaffirmed a “buy” rating and set a $5.25 price objective (up from $4.60) on shares of Gerdau in a report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. increased their target price on Gerdau from $5.50 to $6.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $5.28.

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.