Bank of Nova Scotia Lowers Position in Vale S.A. (NYSE:VALE)

Key Points

• Bank of Nova Scotia reduced its stake in Vale S.A. by 11.2%, selling 48,995 shares during the first quarter, leaving it with a total of 387,280 shares worth $3,864,000.
• Vale reported $0.50 earnings per share for the last quarter, surpassing analyst expectations of $0.34, but its revenue of $8.80 billion fell short of the anticipated $9.54 billion.
• The company announced a semi-annual dividend of $0.3417 per share with a yield of 740.0%, set to be paid on September 10th, reflecting a payout ratio of 60.98%.

Bank of Nova Scotia lessened its position in Vale S.A. (NYSE:VALE - Free Report) by 11.2% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 387,280 shares of the basic materials company's stock after selling 48,995 shares during the period. Bank of Nova Scotia's holdings in Vale were worth $3,864,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Oppenheimer & Co. Inc. acquired a new stake in shares of Vale in the 1st quarter worth $228,000. Golden State Wealth Management LLC lifted its stake in shares of Vale by 193.0% in the 1st quarter. Golden State Wealth Management LLC now owns 4,119 shares of the basic materials company's stock worth $41,000 after acquiring an additional 2,713 shares during the period. Cornerstone Wealth Management LLC lifted its stake in shares of Vale by 20.4% in the 1st quarter. Cornerstone Wealth Management LLC now owns 15,954 shares of the basic materials company's stock worth $159,000 after acquiring an additional 2,707 shares during the period. Wealth Enhancement Advisory Services LLC lifted its stake in shares of Vale by 38.5% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 22,522 shares of the basic materials company's stock valued at $225,000 after purchasing an additional 6,261 shares during the period. Finally, Merit Financial Group LLC lifted its stake in shares of Vale by 44.4% in the first quarter. Merit Financial Group LLC now owns 20,847 shares of the basic materials company's stock valued at $208,000 after purchasing an additional 6,412 shares during the period. Institutional investors and hedge funds own 21.85% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Wall Street Zen started coverage on shares of Vale in a research note on Wednesday, May 7th. They issued a "hold" rating for the company. UBS Group lifted their target price on shares of Vale from $9.00 to $10.00 and gave the stock a "neutral" rating in a research report on Monday, August 4th. Barclays lifted their target price on shares of Vale from $12.75 to $13.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 2nd. CICC Research started coverage on shares of Vale in a research report on Monday, May 12th. They set an "outperform" rating and a $11.30 target price for the company. Finally, Royal Bank Of Canada restated a "sector perform" rating and set a $11.00 target price (down previously from $12.00) on shares of Vale in a research report on Thursday, April 17th. Six investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $11.84.

Vale Trading Up 2.3%

Shares of NYSE VALE traded up $0.23 during midday trading on Friday, reaching $10.22. 41,937,507 shares of the stock were exchanged, compared to its average volume of 50,015,028. The company has a market capitalization of $46.39 billion, a P/E ratio of 8.31 and a beta of 0.74. Vale S.A. has a 52-week low of $8.06 and a 52-week high of $12.05. The company has a current ratio of 1.22, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48. The stock has a 50 day moving average price of $9.74 and a 200-day moving average price of $9.60.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.16. The business had revenue of $8.80 billion during the quarter, compared to the consensus estimate of $9.54 billion. Vale had a net margin of 14.23% and a return on equity of 18.14%. Equities research analysts expect that Vale S.A. will post 1.85 earnings per share for the current fiscal year.

Vale Cuts Dividend

The business also recently announced a semi-annual dividend, which will be paid on Wednesday, September 10th. Investors of record on Wednesday, August 13th will be issued a $0.3417 dividend. This represents a yield of 740.0%. The ex-dividend date is Wednesday, August 13th. Vale's payout ratio is presently 58.54%.

Vale Profile

Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.