Capital World Investors Raises Stake in Vale S.A. $VALE

Key Points

• Capital World Investors boosted its Vale stake by 58.2% in the fourth quarter, adding about 32.9 million shares and bringing its total holding to 89.3 million shares valued at roughly $1.16 billion.
• Vale’s latest quarterly results missed analyst expectations, with EPS of $0.44 versus $0.52 expected and revenue of $9.26 billion versus $9.53 billion estimated.
• Wall Street sentiment remains mixed but constructive: analysts currently rate Vale “Moderate Buy” on average, with an average price target of $16.65, while several firms recently raised their targets.

Capital World Investors lifted its position in shares of Vale S.A. (NYSE:VALE - Free Report) by 58.2% in the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 89,322,261 shares of the basic materials company's stock after purchasing an additional 32,864,929 shares during the quarter. Capital World Investors' holdings in Vale were worth $1,163,896,000 as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. N.E.W. Advisory Services LLC purchased a new stake in shares of Vale during the 4th quarter worth about $26,000. Cary Street Partners Investment Advisory LLC lifted its position in Vale by 60.0% during the 3rd quarter. Cary Street Partners Investment Advisory LLC now owns 2,748 shares of the basic materials company's stock worth $30,000 after acquiring an additional 1,030 shares in the last quarter. Bruce G. Allen Investments LLC acquired a new position in Vale during the 4th quarter worth approximately $33,000. Triumph Capital Management acquired a new position in Vale during the 3rd quarter worth approximately $34,000. Finally, Cornerstone Planning Group LLC lifted its position in Vale by 15,360.0% during the 4th quarter. Cornerstone Planning Group LLC now owns 3,092 shares of the basic materials company's stock worth $40,000 after acquiring an additional 3,072 shares in the last quarter. Hedge funds and other institutional investors own 21.85% of the company's stock.

Vale Stock Performance

VALE stock opened at $15.20 on Monday. The company has a current ratio of 1.24, a quick ratio of 0.79 and a debt-to-equity ratio of 0.48. The firm has a market cap of $68.97 billion, a P/E ratio of 22.68 and a beta of 0.46. Vale S.A. has a 12-month low of $8.97 and a 12-month high of $17.94. The stock's 50 day simple moving average is $16.53 and its 200 day simple moving average is $15.29.

Vale (NYSE:VALE - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The basic materials company reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.08). The firm had revenue of $9.26 billion for the quarter, compared to analyst estimates of $9.53 billion. Vale had a net margin of 7.21% and a return on equity of 21.10%. As a group, equities research analysts predict that Vale S.A. will post 2.15 EPS for the current year.

Insider Buying and Selling at Vale

In other Vale news, insider Parenti Grazielle Tallia purchased 10,464 shares of the stock in a transaction dated Wednesday, April 1st. The shares were bought at an average cost of $16.11 per share, with a total value of $168,575.04. Following the completion of the acquisition, the insider owned 10,464 shares of the company's stock, valued at approximately $168,575.04. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Sobrinho Sami Arap bought 12,990 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were purchased at an average cost of $16.11 per share, with a total value of $209,268.90. Following the purchase, the vice president directly owned 12,990 shares of the company's stock, valued at approximately $209,268.90. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information.

Wall Street Analyst Weigh In

Several research firms recently commented on VALE. Barclays boosted their price target on Vale from $15.50 to $16.50 and gave the stock an "overweight" rating in a research report on Monday, March 2nd. UBS Group boosted their price target on Vale from $12.00 to $16.00 and gave the stock a "neutral" rating in a research report on Friday, March 27th. JPMorgan Chase & Co. boosted their price target on Vale from $18.50 to $19.50 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $18.00 price target on shares of Vale in a research report on Friday, May 15th. Finally, Scotiabank boosted their price target on Vale from $16.50 to $18.00 and gave the stock a "sector perform" rating in a research report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $16.65.

About Vale

Vale SA is a Brazilian multinational mining company and one of the world's largest producers of iron ore and iron ore pellets. In addition to iron ore, the company produces and sells a range of bulk commodities and metals, including nickel, copper, coal, manganese, ferroalloys and cobalt, and it participates in the fertilizer inputs market. Vale also operates extensive logistics assets — including rail, port and maritime logistics — that support its mining and export activities and provide services to third parties in some regions.

Headquartered in Brazil, Vale maintains a global operational footprint with mining, processing and shipping activities across the Americas, Africa, Asia and Oceania.

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