Vale (NYSE:VALE) Upgraded by Zacks Research to "Hold" Rating

Key Points

• Zacks Research upgraded Vale from “strong sell” to “hold,” while the broader analyst consensus remains “Hold” with an average price target of $16.33.
• Vale shares opened at $15.55 and were trading up 1.9%; the stock has a 52-week range of $10.33 to $17.94.
• The company’s latest quarterly results fell short of expectations, reporting EPS of $0.36 versus a $0.46 estimate and revenue of $10.24 billion versus a $10.47 billion consensus forecast.

Vale (NYSE:VALE - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

Other analysts also recently issued reports about the company. The Goldman Sachs Group downgraded Vale from a "buy" rating to a "neutral" rating and lowered their price target for the stock from $18.00 to $16.00 in a research report on Monday, July 27th. Weiss Ratings reissued a "hold (c)" rating on shares of Vale in a research note on Wednesday, July 8th. Morgan Stanley restated an "equal weight" rating and issued a $16.50 target price (down from $19.50) on shares of Vale in a report on Wednesday, July 8th. Bank of America reaffirmed a "neutral" rating and set a $16.00 price target (down from $18.00) on shares of Vale in a research note on Wednesday, August 5th. Finally, Wall Street Zen downgraded shares of Vale from a "buy" rating to a "hold" rating in a report on Saturday, July 18th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $16.33.

Vale Trading Up 1.9%

Shares of NYSE VALE opened at $15.55 on Monday. Vale has a 1-year low of $10.33 and a 1-year high of $17.94. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.19 and a quick ratio of 0.77. The business's 50 day moving average is $14.69 and its two-hundred day moving average is $15.59. The stock has a market capitalization of $70.60 billion, a P/E ratio of 31.74 and a beta of 0.49.

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). The company had revenue of $10.24 billion during the quarter, compared to the consensus estimate of $10.47 billion. Vale had a net margin of 5.11% and a return on equity of 19.87%. As a group, research analysts expect that Vale will post 1.9 EPS for the current year.

Institutional Trading of Vale

A number of large investors have recently modified their holdings of the company. Arrowstreet Capital Limited Partnership increased its holdings in Vale by 2,239.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 41,596,000 shares of the basic materials company's stock worth $541,996,000 after purchasing an additional 39,818,066 shares during the period. Capital World Investors lifted its holdings in shares of Vale by 58.2% in the 4th quarter. Capital World Investors now owns 89,322,261 shares of the basic materials company's stock worth $1,163,896,000 after buying an additional 32,864,929 shares during the period. GQG Partners LLC lifted its holdings in shares of Vale by 42.4% in the 4th quarter. GQG Partners LLC now owns 65,132,572 shares of the basic materials company's stock worth $848,677,000 after buying an additional 19,397,396 shares during the period. Assenagon Asset Management S.A. grew its position in shares of Vale by 15,202.2% during the 1st quarter. Assenagon Asset Management S.A. now owns 15,663,641 shares of the basic materials company's stock worth $249,209,000 after buying an additional 15,561,279 shares in the last quarter. Finally, Bank of America Corp DE increased its stake 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 valued at $347,433,000 after buying an additional 11,905,247 shares during the period. Hedge funds and other institutional investors own 21.85% of the company's stock.

About Vale

Vale SA is a Brazilian mining and logistics company headquartered in Rio de Janeiro. Its principal business is the production of iron ore and iron ore pellets, which are supplied to steelmakers around the world. The company also produces nickel, copper, manganese, coal and other mineral products.

Vale operates mining, processing, transportation and logistics infrastructure, including railways, ports and maritime terminals. Its operations and projects span Brazil and other jurisdictions, including Canada and Indonesia, enabling the company to serve customers in international markets.

The company was established in 1942 as Companhia Vale do Rio Doce and was privatized in 1997.

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