Vale (NYSE:VALE) Given New $9.50 Price Target at Freedom Broker

Key Points

• Freedom Broker cut Vale’s price target from $12.00 to $9.50 while maintaining a “buy” rating, implying 16.26% downside from the previous close.
• Analyst sentiment is mixed: Vale has an average “hold” rating and a consensus price target of $15.12, with four buys, ten holds, and one sell.
• Vale’s shares traded at $11.35, near their 12-month low, after the company missed quarterly EPS expectations ($0.29 versus $0.38) despite reporting revenue slightly above estimates.

Vale (NYSE:VALE - Get Free Report) had its target price decreased by research analysts at Freedom Broker from $12.00 to $9.50 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has a "buy" rating on the basic materials company's stock. Freedom Broker's price objective would indicate a potential downside of 16.26% from the stock's previous close.

A number of other equities research analysts also recently weighed in on VALE. Sanford C. Bernstein upped their target price on Vale from $12.00 to $12.50 and gave the stock a "market perform" rating in a research report on Wednesday, September 9th. The Goldman Sachs Group cut Vale from a "buy" rating to a "neutral" rating and lowered their price target for the company from $18.00 to $16.00 in a research report on Monday, July 27th. Wall Street Zen downgraded Vale from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. Deutsche Bank Aktiengesellschaft set a $15.00 price objective on Vale in a report on Friday, October 16th. Finally, Morgan Stanley set a $15.50 target price on Vale in a research note on Wednesday, October 7th. Four research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $15.12.

Vale Price Performance

Shares of VALE stock traded down $0.04 during midday trading on Monday, reaching $11.35. 27,880,328 shares of the company were exchanged, compared to its average volume of 30,538,664. The company's 50 day moving average price is $13.87 and its two-hundred day moving average price is $15.24. The company has a market cap of $51.50 billion, a P/E ratio of 75.64 and a beta of 0.42. Vale has a 12 month low of $11.06 and a 12 month high of $17.94. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.77 and a current ratio of 1.19.

Vale (NYSE:VALE - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The basic materials company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.09). Vale had a net margin of 1.64% and a return on equity of 16.72%. The company had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.45 billion. On average, sell-side analysts expect that Vale will post 1.65 earnings per share for the current year.

Institutional Trading of Vale

Large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership lifted its position in shares of Vale by 15.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 47,947,703 shares of the basic materials company's stock valued at $762,848,000 after acquiring an additional 6,351,703 shares during the last quarter. Lazard Asset Management LLC grew its holdings in shares of Vale by 5.4% in the 1st quarter. Lazard Asset Management LLC now owns 23,685,915 shares of the basic materials company's stock worth $376,843,000 after acquiring an additional 1,205,280 shares during the last quarter. Bank of America Corp DE raised its position in shares of Vale by 119.9% during the first quarter. Bank of America Corp DE now owns 21,837,416 shares of the basic materials company's stock worth $347,433,000 after purchasing an additional 11,905,247 shares during the period. Renaissance Technologies LLC raised its position in shares of Vale by 27.3% during the first quarter. Renaissance Technologies LLC now owns 14,053,337 shares of the basic materials company's stock worth $223,589,000 after purchasing an additional 3,012,700 shares during the period. Finally, OMERS ADMINISTRATION Corp acquired a new stake in shares of Vale during the first quarter worth $128,239,000. 21.85% of the stock is currently owned by institutional investors.

Vale Company Profile

Vale SA is a Brazil-based global mining and logistics company best known for producing iron ore and iron ore pellets, key raw materials used in steelmaking. The company also produces nickel, copper, manganese ore, coal and other mineral products, with operations spanning exploration, extraction, processing and transportation.

Vale operates an extensive logistics network that includes railways, ports and maritime transportation systems, primarily supporting the movement of minerals from its production sites to domestic and international customers.

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