Vale (NYSE:VALE) Stock Price Target Cut by UBS Group

Key Points

• UBS Group lowered Vale’s price target from $14.50 to $13.50 while maintaining a “neutral” rating, implying approximately 19% upside from the stock’s previous close.
• Analyst sentiment remains cautious: Vale has a consensus “Hold” rating and an average price target of $15.58, based on three Buy, ten Hold, and two Sell ratings.
• Vale shares fell 0.4% to $11.35, near their 52-week low, after the company reported quarterly earnings of $0.29 per share—below the $0.38 consensus estimate—despite revenue exceeding expectations.

Vale (NYSE:VALE - Get Free Report) had its target price dropped by investment analysts at UBS Group from $14.50 to $13.50 in a research note issued on Monday, Benzinga reports. The firm currently has a "neutral" rating on the basic materials company's stock. UBS Group's price target would indicate a potential upside of 19.00% from the stock's previous close.

VALE has been the subject of several other research reports. Sanford C. Bernstein raised their target price on shares of Vale from $12.00 to $12.50 and gave the stock a "market perform" rating in a report on Wednesday, September 9th. Wells Fargo & Company cut their target price on shares of Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a research note on Thursday, July 9th. Bank of America cut shares of Vale from a "buy" rating to a "neutral" rating and lowered their target price for the stock from $18.00 to $16.00 in a research note on Wednesday, August 5th. Royal Bank Of Canada increased their price target on Vale from $15.00 to $16.00 and gave the company a "sector perform" rating in a report on Wednesday, September 16th. Finally, JPMorgan Chase & Co. raised their price target on shares of Vale from $21.00 to $22.00 and gave the stock an "overweight" rating in a report on Wednesday, September 30th. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $15.58.

Vale Trading Down 0.4%

VALE traded down $0.04 during trading hours on Monday, reaching $11.35. 27,881,149 shares of the company's stock traded hands, compared to its average volume of 30,538,602. The firm has a market capitalization of $51.50 billion, a PE ratio of 75.64 and a beta of 0.42. Vale has a 52-week low of $11.06 and a 52-week high of $17.94. The company has a quick ratio of 0.77, a current ratio of 1.19 and a debt-to-equity ratio of 0.45. The firm has a 50-day moving average price of $13.87 and a 200 day moving average price of $15.24.

Vale (NYSE:VALE - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The basic materials company reported $0.29 earnings per share 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 for the quarter, compared to the consensus estimate of $10.45 billion. As a group, sell-side analysts predict that Vale will post 1.65 EPS for the current fiscal year.

Hedge Funds Weigh In On Vale

Several large investors have recently bought and sold shares of the business. Nykredit A S purchased a new stake in Vale during the second quarter worth approximately $3,162,000. Corient Private Wealth LP bought a new stake in shares of Vale during the 2nd quarter valued at about $1,119,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Vale by 445.8% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 115,656 shares of the basic materials company's stock valued at $1,739,000 after buying an additional 94,466 shares during the last quarter. Amundi boosted its position in shares of Vale by 27.4% during the second quarter. Amundi now owns 2,243,230 shares of the basic materials company's stock worth $33,738,000 after buying an additional 482,313 shares during the period. Finally, Bank of Nova Scotia raised its stake in shares of Vale by 116.2% in the 2nd quarter. Bank of Nova Scotia now owns 231,527 shares of the basic materials company's stock worth $3,482,000 after buying an additional 124,460 shares in the last quarter. Hedge funds and other institutional investors own 21.85% of the company's stock.

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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