Vale S.A. (NYSE:VALE) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts maintain a “Hold” consensus on Vale, with 12 of 16 analysts rating the stock a hold and an average 12-month price target of $16.04.
• Vale reported quarterly earnings of $0.36 per share, missing the $0.46 analyst consensus, while revenue of $10.24 billion also fell short of expectations.
• Shares opened at $14.10, below the consensus price target, and institutional investors own 21.85% of the company; Vale also paid a special dividend of $0.3088 per share.

Shares of Vale S.A. (NYSE:VALE - Get Free Report) have earned a consensus rating of "Hold" from the sixteen analysts that are covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, twelve have given a hold recommendation, two have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $16.04.

A number of research analysts have commented on VALE shares. Scotiabank reduced their price target on shares of Vale from $19.00 to $16.00 and set a "sector perform" rating on the stock in a research report on Monday, July 20th. Wells Fargo & Company lowered their price objective on shares of Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a report on Thursday, July 9th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Vale in a research note on Wednesday, July 8th. JPMorgan Chase & Co. increased their target price on shares of Vale from $21.00 to $22.00 and gave the company an "overweight" rating in a report on Wednesday, September 30th. Finally, Zacks Research upgraded shares of Vale from a "strong sell" rating to a "hold" rating in a research report on Monday, September 7th.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Ramsey Quantitative Systems purchased a new stake in Vale during the 2nd quarter valued at about $56,000. V Square Quantitative Management LLC purchased a new position in Vale in the 1st quarter worth approximately $83,000. Quartz Partners LLC purchased a new position in Vale in the 1st quarter worth approximately $161,000. Keybank National Association OH bought a new stake in Vale in the first quarter valued at approximately $162,000. Finally, HB Wealth Management LLC bought a new stake in Vale in the first quarter valued at approximately $168,000. Hedge funds and other institutional investors own 21.85% of the company's stock.

Vale Trading Down 0.4%

Shares of VALE stock opened at $14.10 on Wednesday. The business has a 50-day moving average price of $14.52 and a two-hundred day moving average price of $15.34. Vale has a 12-month low of $10.71 and a 12-month 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 market cap of $63.98 billion, a P/E ratio of 28.77 and a beta of 0.42.

Vale (NYSE:VALE - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.36 earnings per share for the quarter, missing analysts' consensus estimates of $0.46 by ($0.10). The firm had revenue of $10.24 billion for the quarter, compared to analysts' expectations of $10.47 billion. Vale had a net margin of 5.11% and a return on equity of 19.87%. Equities analysts anticipate that Vale will post 1.86 EPS for the current fiscal year.

Vale Dividend Announcement

The firm also recently declared a special dividend, which was paid on Thursday, September 10th. Shareholders of record on Thursday, August 13th were given a dividend of $0.3088 per share. The ex-dividend date was Thursday, August 13th. Vale's dividend payout ratio is presently 89.80%.

Vale Company Profile

Vale SA is a Brazil-based global mining company and one of the world's major producers of iron ore and iron ore pellets, which are used primarily in steelmaking. The company also produces nickel, copper, manganese, coal and other mineral products, serving customers in the steel, energy and technology industries.

Founded in 1942 as Companhia Vale do Rio Doce, the company was privatized in 1997 and adopted the Vale name in 2007. Its operations are concentrated in Brazil, particularly in the states of Pará and Minas Gerais, while its base-metals business has mining and processing activities in countries including Canada and Indonesia.

Vale also operates an integrated logistics system that includes railways, ports and maritime transportation infrastructure used to move its products from mining regions to domestic and international markets.

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