Gerdau (NYSE:GGB) Issues Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Gerdau (NYSE:GGB) announced its quarterly earnings data on Tuesday. The basic materials company reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.01), FiscalAI reports. The firm had revenue of $3.45 billion during 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 Trading Up 0.7%

Shares of Gerdau stock traded up $0.04 during trading hours on Tuesday, hitting $5.09. The company’s stock had a trading volume of 18,818,878 shares, compared to its average volume of 18,822,916. The company has a market capitalization of $10.19 billion, a PE ratio of 31.85 and a beta of 1.48. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.76 and a quick ratio of 1.29. The stock has a 50 day moving average of $4.53 and a 200 day moving average of $4.27. Gerdau has a 12 month low of $2.85 and a 12 month high of $5.17.

Wall Street Analyst Weigh In

GGB has been the topic of a number of research reports. UBS Group restated 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. JPMorgan Chase & Co. lifted their price target on shares of Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Gerdau in a 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 assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $5.28.

Insiders Place Their Bets

In related news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $4.87, for a total value of $2,107,998.98. Following the completion of the transaction, the chief executive officer directly owned 432,854 shares in the company, valued at approximately $2,107,998.98. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Chia Yuan Wang sold 30,935 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $4.49, for a total value of $138,898.15. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 493,789 shares of company stock worth $2,389,147. Company insiders own 0.02% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of GGB. AQR Capital Management LLC boosted its position in Gerdau by 65.9% during the 1st quarter. AQR Capital Management LLC now owns 582,949 shares of the basic materials company’s stock worth $1,656,000 after acquiring an additional 231,588 shares during the last quarter. Millennium Management LLC raised its holdings in shares of Gerdau by 54.6% in the first quarter. Millennium Management LLC now owns 4,363,764 shares of the basic materials company’s stock valued at $12,393,000 after purchasing an additional 1,541,311 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in 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 valued at $6,657,000 after purchasing an additional 2,089,675 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in Gerdau in the 2nd quarter valued at $51,000. Finally, Creative Planning increased its stake in Gerdau by 88.8% in the 2nd quarter. Creative Planning now owns 70,079 shares of the basic materials company’s stock valued at $205,000 after buying an additional 32,961 shares during the last quarter. 1.49% of the stock is owned by institutional investors and hedge funds.

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.