Donald Smith & CO. Inc. Has $89.34 Million Stake in Gerdau S.A. $GGB

Donald Smith & CO. Inc. grew its stake in Gerdau S.A. (NYSE:GGB) by 49.2% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 24,211,588 shares of the basic materials company’s stock after purchasing an additional 7,982,296 shares during the period. Gerdau comprises about 1.7% of Donald Smith & CO. Inc.’s investment portfolio, making the stock its 28th biggest position. Donald Smith & CO. Inc. owned about 1.21% of Gerdau worth $89,341,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. Capital International Investors grew its position in Gerdau by 1.9% in the 3rd quarter. Capital International Investors now owns 31,046,243 shares of the basic materials company’s stock worth $96,243,000 after purchasing an additional 581,958 shares during the last quarter. Aquamarine Financial Cayman Ltd lifted its holdings in shares of Gerdau by 9.7% during the 4th quarter. Aquamarine Financial Cayman Ltd now owns 19,526,171 shares of the basic materials company’s stock worth $72,052,000 after acquiring an additional 1,724,943 shares during the period. Bank of America Corp DE lifted its holdings in shares of Gerdau by 22.4% during the 3rd quarter. Bank of America Corp DE now owns 15,894,871 shares of the basic materials company’s stock worth $49,274,000 after acquiring an additional 2,910,482 shares during the period. Causeway Capital Management LLC lifted its holdings in shares of Gerdau by 169.2% during the 3rd quarter. Causeway Capital Management LLC now owns 7,189,270 shares of the basic materials company’s stock worth $22,287,000 after acquiring an additional 4,519,092 shares during the period. Finally, Optiver Holding B.V. lifted its holdings in shares of Gerdau by 47.6% during the 3rd quarter. Optiver Holding B.V. now owns 5,435,331 shares of the basic materials company’s stock worth $16,850,000 after acquiring an additional 1,752,282 shares during the period. 1.49% of the stock is currently owned by institutional investors and hedge funds.

Gerdau Price Performance

NYSE:GGB opened at $4.53 on Thursday. The firm has a market cap of $9.05 billion, a PE ratio of 28.28 and a beta of 1.48. Gerdau S.A. has a 12 month low of $2.80 and a 12 month high of $4.98. 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’s 50-day moving average price is $4.45 and its two-hundred day moving average price is $4.06.

Gerdau (NYSE:GGB) last released its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.05). The firm had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.36 billion. Gerdau had a net margin of 2.40% and a return on equity of 6.76%. On average, equities analysts anticipate that Gerdau S.A. will post 0.55 EPS for the current fiscal year.

Gerdau Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Friday, May 15th will be given a $0.0361 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 3.2%. This is a boost from Gerdau’s previous quarterly dividend of $0.02. The ex-dividend date is Friday, May 15th. Gerdau’s dividend payout ratio (DPR) is presently 75.00%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Scotiabank raised shares of Gerdau from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Gerdau in a report on Friday, March 27th. 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. JPMorgan Chase & Co. raised their price objective on shares of Gerdau from $5.00 to $5.50 and gave the stock an “overweight” rating in a report on Monday, April 13th. Finally, Itau BBA Securities raised shares of Gerdau from a “market perform” rating to an “outperform” rating and set a $4.60 price objective for the company in a report on Wednesday, April 1st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Gerdau currently has an average rating of “Moderate Buy” and an average price target of $5.12.

Insider Activity

In other Gerdau news, CEO Cunha Gustavo Werneck Da sold 432,854 shares of the business’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $4.87, for a total value of $2,107,998.98. Following the transaction, the chief executive officer directly owned 432,854 shares in the company, valued at $2,107,998.98. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Clemir Uhlein sold 38,276 shares of the business’s stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $4.51, for a total transaction of $172,624.76. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 879,791 shares of company stock valued at $3,978,923 in the last ninety days. 0.02% of the stock is currently owned by corporate insiders.

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.