Gerdau (NYSE:GGB) Shares Up 7.5% After Dividend Announcement

Gerdau S.A. (NYSE:GGB)’s stock price traded up 7.5% during trading on Wednesday following a dividend announcement from the company. The stock traded as high as $4.91 and last traded at $4.86. 230,736 shares were traded during mid-day trading, a decline of 98% from the average session volume of 12,827,444 shares. The stock had previously closed at $4.52.

The newly announced dividend which will be paid on Tuesday, November 23rd. Shareholders of record on Thursday, September 30th will be issued a dividend of $0.0814 per share. The ex-dividend date of this dividend is Wednesday, September 29th. This represents a yield of 7.2%. This is an increase from Gerdau’s previous Variable dividend of $0.01. Gerdau’s payout ratio is currently 151.85%.

Several equities analysts have recently commented on GGB shares. Scotiabank raised shares of Gerdau from a “sector perform” rating to an “outperform” rating in a report on Tuesday, September 7th. Credit Suisse Group upgraded shares of Gerdau from a “neutral” rating to an “outperform” rating in a research report on Thursday, September 9th. Finally, Zacks Investment Research cut shares of Gerdau from a “buy” rating to a “hold” rating in a report on Tuesday. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $6.25.

The stock’s 50 day moving average is $5.49 and its two-hundred day moving average is $5.74. The company has a market capitalization of $8.67 billion, a PE ratio of 4.00, a price-to-earnings-growth ratio of 0.22 and a beta of 1.58. The company has a quick ratio of 1.32, a current ratio of 2.58 and a debt-to-equity ratio of 0.45.

Gerdau (NYSE:GGB) last released its quarterly earnings results on Wednesday, August 4th. The basic materials company reported $0.43 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.48 by ($0.05). The firm had revenue of $3.61 billion for the quarter, compared to analysts’ expectations of $3.67 billion. Gerdau had a net margin of 19.01% and a return on equity of 35.05%. On average, sell-side analysts predict that Gerdau S.A. will post 1.31 EPS for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in GGB. Virtu Financial LLC raised its position in shares of Gerdau by 498.4% in the 1st quarter. Virtu Financial LLC now owns 459,713 shares of the basic materials company’s stock valued at $2,455,000 after purchasing an additional 382,892 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in Gerdau by 5.0% in the 1st quarter. JPMorgan Chase & Co. now owns 20,507,935 shares of the basic materials company’s stock worth $109,513,000 after buying an additional 977,867 shares during the period. American Century Companies Inc. increased its holdings in Gerdau by 5.3% in the 2nd quarter. American Century Companies Inc. now owns 226,385 shares of the basic materials company’s stock worth $1,336,000 after buying an additional 11,369 shares during the period. Renaissance Technologies LLC acquired a new position in Gerdau in the 1st quarter worth approximately $10,193,000. Finally, Voloridge Investment Management LLC acquired a new position in Gerdau in the 1st quarter worth approximately $997,000. 2.69% of the stock is owned by institutional investors and hedge funds.

About Gerdau (NYSE:GGB)

Gerdau SA engages in the production and commercialization of steel products. It operates through the following segments: Brazil Operation, North America Operation, South Africa Operation, and Special Steels Operation. The Brazil Operation segment includes rebar, bars, shapes, drawn products, billets, blooms, slabs; wire rod, structural shapes, and iron ore.

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