Vale (NYSE:VALE) Downgraded to Strong Sell Rating by Freedom Broker

Key Points

• Freedom Broker downgraded Vale to “strong sell” from “hold,” while Zacks Research issued a similar downgrade. Despite this, the broader analyst consensus remains “Hold,” with an average price target of $16.33.
• Vale shares opened at $15.33, compared with a 52-week range of $10.18 to $17.94. The stock’s 50-day moving average was $14.67 and its 200-day moving average was $15.61.
• The company’s latest quarterly results fell short of expectations, reporting EPS of $0.36 versus a $0.46 consensus and revenue of $10.24 billion versus $10.47 billion expected. Institutional investors and hedge funds own 21.85% of Vale’s shares.

Vale (NYSE:VALE - Get Free Report) was downgraded by investment analysts at Freedom Broker from a "hold" rating to a "strong sell" rating in a research note issued on Thursday, Zacks reports.

VALE has been the topic of a number of other reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $18.00 price target on shares of Vale in a research note on Friday, May 15th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of Vale in a research note on Monday, June 15th. Wells Fargo & Company reduced their target price on Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a report on Thursday, July 9th. JPMorgan Chase & Co. raised their target price on Vale from $19.50 to $21.00 and gave the company an "overweight" rating in a research report on Friday, June 12th. Finally, Zacks Research lowered Vale from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $16.33.

Vale Price Performance

Shares of NYSE VALE opened at $15.33 on Thursday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.77 and a current ratio of 1.19. The firm has a fifty day moving average of $14.67 and a 200 day moving average of $15.61. The firm has a market cap of $69.58 billion, a PE ratio of 31.29 and a beta of 0.49. Vale has a one year low of $10.18 and a one year high of $17.94.

Vale (NYSE:VALE - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.46 by ($0.10). Vale had a net margin of 5.11% and a return on equity of 19.87%. The company had revenue of $10.24 billion for the quarter, compared to analysts' expectations of $10.47 billion. As a group, research analysts predict that Vale will post 1.9 EPS for the current fiscal year.

Institutional Trading of Vale

A number of hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC grew its position in shares of Vale by 4.9% in the first quarter. NewEdge Advisors LLC now owns 79,400 shares of the basic materials company's stock valued at $792,000 after purchasing an additional 3,704 shares in the last quarter. Jones Financial Companies Lllp lifted its position in Vale by 46.6% during the first quarter. Jones Financial Companies Lllp now owns 37,613 shares of the basic materials company's stock worth $375,000 after buying an additional 11,964 shares in the last quarter. Empowered Funds LLC purchased a new position in Vale during the first quarter worth approximately $171,000. Strs Ohio acquired a new position in Vale during the first quarter worth $117,000. Finally, Sivia Capital Partners LLC acquired a new position in Vale during the second quarter worth $123,000. Institutional investors and hedge funds own 21.85% of the company's stock.

About Vale

Vale SA is a Brazilian multinational mining company and one of the world's largest producers of iron ore and iron ore pellets. In addition to iron ore, the company produces and sells a range of bulk commodities and metals, including nickel, copper, coal, manganese, ferroalloys and cobalt, and it participates in the fertilizer inputs market. Vale also operates extensive logistics assets — including rail, port and maritime logistics — that support its mining and export activities and provide services to third parties in some regions.

Headquartered in Brazil, Vale maintains a global operational footprint with mining, processing and shipping activities across the Americas, Africa, Asia and Oceania.

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