Hsbc Holdings PLC Reduces Holdings in Vale S.A. $VALE

Key Points

• HSBC Holdings PLC reduced its stake in Vale S.A. by 13.6%, selling 252,184 shares, leaving it with a total of 1,596,473 shares valued at approximately $15.9 million.
• Vale recently posted earnings of $0.50 per share, surpassing analyst expectations, although reported revenue was below forecast at $8.80 billion.
• The company announced a dividend of $0.3417 per share with a significant yield of 740.0%, while the dividend payout ratio stands at 58.54%.

Hsbc Holdings PLC decreased its stake in shares of Vale S.A. (NYSE:VALE - Free Report) by 13.6% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 1,596,473 shares of the basic materials company's stock after selling 252,184 shares during the period. Hsbc Holdings PLC's holdings in Vale were worth $15,925,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of VALE. GQG Partners LLC bought a new stake in shares of Vale during the 1st quarter worth approximately $371,778,000. Lazard Asset Management LLC increased its position in shares of Vale by 49.3% during the fourth quarter. Lazard Asset Management LLC now owns 18,238,313 shares of the basic materials company's stock worth $161,773,000 after buying an additional 6,023,144 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of Vale by 20.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 33,995,398 shares of the basic materials company's stock worth $301,541,000 after buying an additional 5,775,590 shares during the period. Balyasny Asset Management L.P. increased its position in shares of Vale by 6,547.5% during the fourth quarter. Balyasny Asset Management L.P. now owns 4,782,424 shares of the basic materials company's stock worth $42,420,000 after buying an additional 4,710,481 shares during the period. Finally, Woodline Partners LP acquired a new stake in Vale in the fourth quarter worth $39,775,000. Institutional investors own 21.85% of the company's stock.

Analyst Ratings Changes

A number of research analysts have weighed in on VALE shares. CICC Research assumed coverage on shares of Vale in a research note on Monday, May 12th. They issued an "outperform" rating and a $11.30 price objective on the stock. Barclays boosted their price objective on shares of Vale from $12.75 to $13.00 and gave the stock an "overweight" rating in a report on Wednesday, July 2nd. Scotiabank lowered their price target on shares of Vale from $13.00 to $12.50 and set a "sector perform" rating for the company in a report on Tuesday, July 22nd. UBS Group reaffirmed a "neutral" rating and issued a $10.00 target price (up from $9.00) on shares of Vale in a research report on Monday, August 4th. Finally, Wall Street Zen began coverage on shares of Vale in a research report on Wednesday, May 7th. They set a "hold" rating on the stock. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $11.84.

Vale Trading Up 0.1%

NYSE VALE traded up $0.02 on Thursday, hitting $10.27. 20,685,551 shares of the stock were exchanged, compared to its average volume of 36,829,156. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.85 and a current ratio of 1.22. The stock has a fifty day moving average price of $9.88 and a two-hundred day moving average price of $9.66. The firm has a market capitalization of $46.59 billion, a P/E ratio of 8.35 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.

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

Vale Cuts Dividend

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