Vale S.A. (NYSE:VALE) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold”: Of 16 analysts covering Vale, 12 rate the stock a hold, while two recommend buying, one strongly recommends buying and one recommends selling. The average 12-month price target is $16.04.
• Recent results fell short of expectations: Vale reported quarterly EPS of $0.36 versus the $0.46 consensus estimate and revenue of $10.24 billion versus expectations of $10.47 billion.
• Vale paid a special dividend of $0.3088 per share: The company’s dividend payout ratio stands at 89.8%, while institutional investors own approximately 21.85% of the stock.

Shares of Vale S.A. (NYSE:VALE - Get Free Report) have been assigned a consensus recommendation of "Hold" from the sixteen analysts that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating, two have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have covered the stock in the last year is $16.0385.

A number of equities research analysts have recently issued reports on VALE shares. Scotiabank cut their price objective on shares of Vale from $19.00 to $16.00 and set a "sector perform" rating for the company in a research report on Monday, July 20th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $18.00 target price on shares of Vale in a research report on Friday, May 15th. Wells Fargo & Company cut their price target on Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a report on Thursday, July 9th. Bank of America restated a "neutral" rating and issued a $16.00 price target (down from $18.00) on shares of Vale in a research report on Wednesday, August 5th. Finally, Barclays raised their price objective on Vale from $16.75 to $17.00 and gave the stock an "equal weight" rating in a research note on Monday, August 3rd.

Vale Price Performance

Shares of NYSE:VALE opened at $15.21 on Friday. 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 stock has a market capitalization of $69.02 billion, a PE ratio of 31.03 and a beta of 0.49. The firm's 50 day moving average price is $14.71 and its 200-day moving average price is $15.58. Vale has a twelve month low of $10.58 and a twelve month high of $17.94.

Vale (NYSE:VALE - Get Free Report) last announced its earnings results 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 business had revenue of $10.24 billion for the quarter, compared to the consensus estimate of $10.47 billion. Equities research analysts expect that Vale will post 1.9 EPS for the current year.

Vale Dividend Announcement

The company also recently announced a special dividend, which was paid on Thursday, September 10th. Investors of record on Thursday, August 13th were issued a $0.3088 dividend. The ex-dividend date of this dividend was Thursday, August 13th. Vale's dividend payout ratio is currently 89.80%.

Hedge Funds Weigh In On Vale

A number of hedge funds have recently modified their holdings of VALE. PNC Financial Services Group Inc. increased its stake in shares of Vale by 2.2% in the fourth quarter. PNC Financial Services Group Inc. now owns 28,913 shares of the basic materials company's stock worth $377,000 after purchasing an additional 632 shares in the last quarter. NewEdge Wealth LLC lifted its stake in shares of Vale by 2.8% during the 1st quarter. NewEdge Wealth LLC now owns 25,799 shares of the basic materials company's stock valued at $410,000 after buying an additional 708 shares in the last quarter. Quadrant Capital Group LLC boosted its holdings in Vale by 1.3% in the 4th quarter. Quadrant Capital Group LLC now owns 66,870 shares of the basic materials company's stock worth $871,000 after buying an additional 853 shares during the period. Parallel Advisors LLC boosted its holdings in Vale by 5.4% in the 3rd quarter. Parallel Advisors LLC now owns 17,350 shares of the basic materials company's stock worth $188,000 after buying an additional 885 shares during the period. Finally, Intergy Private Wealth LLC increased its stake in Vale by 6.6% in the 1st quarter. Intergy Private Wealth LLC now owns 14,759 shares of the basic materials company's stock worth $235,000 after buying an additional 908 shares in the last quarter. 21.85% of the stock is currently owned by institutional investors.

Vale Company Profile

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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