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

Gerdau S.A. (NYSE:GGB) declared a quarterly dividend on Wednesday, August 5th. Shareholders 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 yield of 3.5%. The ex-dividend date is Friday, August 21st. This is a 24.1% increase from Gerdau’s previous quarterly dividend of $0.04.

Gerdau has increased its dividend by an average of 0.2%annually over the last three years. Gerdau has a payout ratio of 28.9% meaning its dividend is sufficiently covered by earnings. Equities 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 $0.04 during trading hours on Thursday, reaching $5.09. 6,213,182 shares of the company’s stock were exchanged, compared to its average volume of 18,749,475. Gerdau has a fifty-two week low of $2.85 and a fifty-two week high of $5.18. 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 stock has a market capitalization of $10.19 billion, a P/E ratio of 22.20 and a beta of 1.48. The business has a fifty day moving average price of $4.55 and a 200-day moving average price of $4.28.

Gerdau (NYSE:GGB) last announced its earnings results on Tuesday, August 4th. The basic materials company reported $0.15 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.15. The business had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.41 billion. Gerdau had a net margin of 3.37% and a return on equity of 8.11%. Analysts predict that Gerdau will post 0.53 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

GGB has been the topic of several research reports. UBS Group restated 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. Weiss Ratings reiterated a “hold (c)” rating on shares of Gerdau in a research note on Wednesday, June 24th. Finally, JPMorgan Chase & Co. lifted their target price on Gerdau from $5.50 to $6.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. One investment 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 stock currently has a consensus rating of “Moderate Buy” and a consensus 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.