SCHEDULE 13G/A: FMR LLC and Abigail P. Johnson Disclose 7.6% Stake in Gerdau SA Common Stock

FMR LLC and its Chairman and CEO, Abigail P. Johnson, have jointly disclosed a beneficial ownership of 7.6% of Gerdau SA's common stock as of December 31, 2024.

Summary

• FMR LLC and Abigail P. Johnson, its Chairman and CEO, have filed an Amendment No. 1 to Schedule 13G, reporting their beneficial ownership in Gerdau SA.
• As of December 31, 2024, the aggregate amount beneficially owned by FMR LLC and Abigail P. Johnson is 103,732,396.65 shares of Gerdau SA's common stock.
• This ownership represents 7.6% of the total outstanding common stock of Gerdau SA.
• FMR LLC holds sole voting power over 103,441,239.45 shares and sole dispositive power over 103,732,396.65 shares.
• Abigail P. Johnson holds sole dispositive power over 103,732,396.65 shares, with no sole or shared voting power.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Gerdau SA.
• The filing was made under Rule 13d-1(b), indicating FMR LLC is a parent holding company or control person.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The disclosure of a significant stake by a reputable institutional investor like FMR LLC can be viewed favorably by the market, signaling confidence in the company without indicating an intent to influence control.

Positives

• The disclosure of a significant 7.6% stake by a major institutional investor like FMR LLC can be interpreted as a vote of confidence in Gerdau SA's long-term prospects.
• The filing explicitly states that the shares were acquired and are held in the ordinary course of business, indicating a passive investment rather than an attempt to influence control, which can provide stability.

Future Outlook

This Schedule 13G filing does not contain any forward-looking statements or guidance regarding Gerdau SA's future performance or strategic direction, as its purpose is solely to disclose beneficial ownership.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11." (Certification by FMR LLC and Abigail P. Johnson's authorized signatory).

Industry Context

This filing indicates continued institutional investor interest in Gerdau SA, a major player in the steel industry. Large passive stakes by entities like FMR LLC are common across various industries, reflecting portfolio diversification and long-term investment strategies by asset managers.

Stakeholder Impact

• Shareholders: May view the significant institutional stake as a positive signal of investor confidence and stability, potentially influencing market perception positively.
• Management: The certification that the stake is for ordinary course business and not for control purposes provides clarity and reduces concerns about potential activist pressure.

Key Dates

Keywords

Gerdau SA, FMR LLC, Abigail P. Johnson, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investment, SEC Filing, Steel Industry, Brazil